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2018 (3) TMI 1505 - AT - CustomsCounterveiling Duty (CVD) - Valuation - certain hot rolled and cold rolled stainless steel flat products - import from China PR - Following the Lesser Duty Rule, the DA recommended CV duty equal to the lesser of margin of subsidy and marginal injury, from the date of issue of notification by the Government, so as to remove injury to the DI. The duty amount recommended is 18.5 % of landed value - Held that: - there is no legal requirement of internal homogeneity within the subject goods or for inter-se substitutability of various types of subject goods - Even the Customs Tariff main heading did not specify the products for classification separately. It was also noted that substantial cost of production is on raw materials and utilities upto the stage of steel melting. Expenses involved at rolling stage, whether hot or cold, and are not so significant. The DI produces both HR and CR products in a wide range of shape, size and metallurgical composition as per requirement of the customer. Imposition of CV duty and AD duty on the same subject goods - Held that: - various other countries including EU follow the practice of imposing CV duty and AD duty on the same subject goods. However, the duties together never exceed the injury margin. In other words, if the dumping margin, as established in the investigation, is 30% with subsidy margin worked-out at 10%, injury margin at 25%, the duty imposed are 10% CV duty to offset subsidy and 15% AD duty. It is seen that the CV duty and AD duty put together did not exceed the injury margin though the dumping margin is higher. The same principle of Lesser Duty Rule is followed in India also - there is no infirmity in the final findings of the DA and customs Notification imposing CV duty with reference to subsidy on the subject goods. Appeal dismissed.
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