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2020 (7) TMI 487 - AT - CustomsLevy of Anti-Dumping Duty - import of Ductile Iron Pipes, DI Pipes originating in or exported from China PR - initiation of a sunset review investigation for continuation of ADD - likelihood of dumping injury - HELD THAT:- The Designated Authority has recommended that continuation of Anti-Dumping Duty on import of DI pipes from the subject country namely, China PR is no longer required. The Anti-Dumping Duty on the product under consideration namely, DI pipes has been levied since 14 September, 2007 vide Customs Notification dated 14 September, 2007. The appellant is before us as the Anti-Dumping Duty has not been continued after 9 October, 2018 on the expiry of the period mentioned in the Notification dated 10 October, 2013. It is appropriate to mention that levy of Anti-Dumping Duty on any goods is primarily to protect the domestic industry from unfair trade practices adopted by the foreign exporters who resort to export of goods at highly reduced prices with an intent to dump the goods in the domestic market so as to capture the major share of domestic demand resulting in causing grave economic injury to the domestic industry. The provisions of Customs Tariff Act, 1975 as well as rules framed thereunder are in consonance with the guidelines of World Trade Organisation. These guidelines ensure that in case there is any attempt to dump goods, the domestic industry is insulated from injury which may be caused by unscrupulous exporters. It had been established by the Designated Authority that there was dumping by the exporter which had resulted in injury to the domestic industry in the past and, therefore, they initiated detailed investigation and concluded in the year 2007 vide their Final Findings notified vide Notification dated 23 August, 2007 that there was dumping of subject goods namely, DI pipes from China PR, and accordingly, Anti-Dumping Duty on the subject goods imported from China PR was imposed by the notification in September, 2007 - It is also a matter of record that the Designated Authority considered it necessary to continue with the Anti-Dumping Duty in the first sunset review which took place in September, 2013 and accordingly the levy of Anti-Dumping Duty on subject goods was continued. Thus, it is apparent that in case of sunset review, the authority has to only see whether the cessation of Anti-Dumping Duty on the subject goods would lead to continuation or recurrence of dumping and injury to the domestic industry. It is obvious that the injury margin is likely to be positive in no uncertain terms if the Anti-Dumping Duty is not extended. The price undercutting would also be positive. In such a situation, withdrawal of Anti-Dumping Duty will certainly enable the manufacturers and exporters of the subject goods from China to freely dump the subject goods to the detriment of the Domestic Industry. Non-disclosure of dumping margin to the appellant by claiming shelter of Rule 7 is not justified and violates the principles of natural justice - it is convincing that if Anti-Dumping Duty on the import of DI pipes from China PR is not continued, it may result in likelihood of dumping of subject goods i.e. DI pipes in the Domestic market. The Anti-Dumping Duty on the subject goods namely, D.I. pipes needs to continue after the expiry of the period covered by the first sunset review - matter remanded to the Designated Authority for a limited purpose for re-determining the quantum of Anti-Dumping Duty, if so considered necessary, for the remaining period of five years - the Final Findings of the Designated Authority is set aside - appeal allowed.
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