2000 (2) TMI 322 - AT - Central Excise

Summary

Issues:
1. Correctness of final order regarding anti-dumping investigation on import of Citric Acid from China PR.
2. Fixation of normal value of Citric Acid.
3. Finding on the issue of injury to the domestic industry.
4. Causal link between import of Citric Acid from China PR and injury to the domestic industry.

Issue 1: Correctness of final order regarding anti-dumping investigation on import of Citric Acid from China PR:
The appeal challenges the final order notified by the Designated Authority concerning the anti-dumping investigation on Citric Acid import from China PR. The investigation was initiated based on allegations of dumping by Citurgia Biochemical's Ltd. The Designated Authority conducted the investigation from 1st April, 1996 to 31st July, 1997. Despite lack of cooperation from Chinese manufacturers, the Authority gathered information from various sources and notified preliminary and final findings.

Issue 2: Fixation of normal value of Citric Acid:
The appellant argued that the Designated Authority incorrectly fixed the normal value of Citric Acid from China PR. The Authority based its calculations on information from Chinese delegation and other sources. The appellant contended that the normal value should have been determined based on data from an Indian manufacturer. However, the Tribunal disagreed, stating that the cost of production in India cannot be equated with the normal value in China. The Tribunal upheld the Authority's decision on fixing the normal value.

Issue 3: Finding on the issue of injury to the domestic industry:
The Designated Authority found that the domestic industry suffered injury due to increased imports from China, leading to under-cutting in the Indian market. The Authority's findings were supported by evidence and were upheld by the Tribunal. The decrease in sales, increase in closing stock, and other factors indicated injury to the domestic industry.

Issue 4: Causal link between import of Citric Acid from China PR and injury to the domestic industry:
The Tribunal confirmed the causal link between the import of Citric Acid at lower prices and the injury caused to the domestic industry. The difference between the import price and the normal value indicated dumping, resulting in injury to the domestic industry. The Designated Authority's findings on the causal link were deemed correct based on the evidence gathered during the investigation.

In conclusion, the Tribunal dismissed the appeal, upholding the Designated Authority's decision. The anti-dumping duty was determined based on the dumping margin and the injury margin, ensuring that it did not exceed the dumping margin. The duty was to be calculated in US dollar terms, considering the exchange rate during the investigation period.