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2025 (6) TMI 128 - HC - CustomsFailure to consider the submissions given by the Petitioners by the DGTR - grievance of petitioner is that the submissions made by them dated 20th March 2025 were not considered by the DGTR and despite the Petitioner being similarly placed to Husky Molding Systems Shanghai Ltd. 2025 (3) TMI 1111 - DELHI HIGH COURT a different treatment is meted out to the Petitioners herein - HELD THAT - The manner in which the scheme of Customs Tariff (Identification Assessment and Collection of Anti-Dumping Duty on Dumped Articles and for Determination of Injury) Rules 1995 (hereinafter ADD Rules ) works is that once the final findings are rendered by the DGTR a notification is to be issued by the Central Government accepting the final findings. The settled position in law therefore is that the final findings are not fully binding on the Central Government and therefore at this stage the writ petition is pre-mature in the opinion of the Court. Hence once the final findings issued by the designated authority are imposed in the form of notification by the Central Government it is then that the Petitioners can have a grievance and at that stage they are free to avail of their remedies in accordance with law. Furthermore in terms of Section 9C of the Customs Tariff Act 1975 once a decision is taken by the Central Government an appeal would lie before CESTAT against the imposition of the Anti-Dumping Duty. Thus this Court is of the opinion that the present petition does not merit any interference of this Court at this stage. Insofar as the allegation of non-consideration of the submissions made by the Petitioners dated 20th March 2025 is concerned ld. Sr. counsel submits that the Petitioners are willing to bring this to the notice of the DGTR by making a representation. The Petitioners are free to do so. In case such a representation is made the same shall be considered in accordance with law. Conclusion - i) The Court declined to interfere with the final findings on the ground of non-consideration of submissions leaving the Petitioners free to make representations. ii) The Court rejected the Petitioners claim for parity with Husky Injection Molding Systems Shanghai Ltd. at this stage. iii) The writ petition challenging the final findings was dismissed as premature since no notification imposing anti-dumping duty has been issued. iv) The appellate remedies under Section 9C of the Customs Tariff Act are available post-notification before CESTAT. Petition disposed off.
1. ISSUES PRESENTED and CONSIDERED
The core legal questions considered by the Court in this judgment include:
2. ISSUE-WISE DETAILED ANALYSIS Consideration of Petitioners' Submissions Dated 20th March, 2025 Relevant legal framework and precedents: The ADD Rules require the DGTR to consider all relevant submissions and data provided by interested parties during the investigation. The procedural fairness principle mandates that all material submissions must be taken into account before final findings are issued. Court's interpretation and reasoning: The Petitioners contended that their submissions dated 20th March, 2025 were not considered by the DGTR. The Court observed that the impugned final findings (paragraphs 94 to 96) largely replicate the disclosure statement dated 13th March, 2025 and do not reflect consideration of the subsequent submissions. The Petitioners argued that this non-consideration is a lapse on the part of the DGTR. Key evidence and findings: The Court noted the Petitioners' detailed submissions and the contrast with the treatment of Husky Injection Molding Systems Shanghai Ltd., whose submissions were considered and who was exempted from anti-dumping duty. Application of law to facts: While the Court acknowledged the Petitioners' grievance, it emphasized that the final findings are not final and binding until the Central Government issues a notification under Rule 18 of the ADD Rules. The Court further noted that the Petitioners remain free to make a representation to the DGTR regarding non-consideration, which the DGTR must consider in accordance with law. Treatment of competing arguments: The DGTR contended that all submissions were considered and that the Petitioners' case was not comparable to Husky Injection Molding Systems Shanghai Ltd. The Court did not find it necessary to conclusively decide on this point at this stage, given the procedural posture. Conclusions: The Court declined to interfere with the final findings on this ground at this stage but permitted the Petitioners to approach the DGTR for reconsideration through representation. Comparability with Husky Injection Molding Systems Shanghai Ltd. Relevant legal framework and precedents: The principle of non-discrimination and equal treatment under trade remedy laws requires that similarly situated exporters be treated alike unless material distinctions justify otherwise. Court's interpretation and reasoning: The Petitioners relied on the Husky case, where the DGTR, after considering submissions and verification, concluded no dumping and thus no anti-dumping duty. The Petitioners argued that they were similarly situated but received adverse treatment. Key evidence and findings: The DGTR's findings in the Husky case showed that despite lack of market economy treatment, adjustments were allowed and no duty was imposed. In contrast, the Petitioners' submissions were allegedly not considered, and a 63% anti-dumping duty was recommended. Application of law to facts: The Court recognized the Petitioners' argument but noted that the DGTR's findings in the Petitioners' case pointed to deficiencies such as lack of clarity in data submission and non-compliance with procedural directions (e.g., failure to submit Excel files). The Court did not find the cases identical and deferred detailed comparison to the appropriate stage. Treatment of competing arguments: The DGTR argued that the cases were not comparable. The Court accepted that factual distinctions may justify different treatment but did not adjudicate the merits at this stage. Conclusions: The Court did not grant relief on this ground but left open the possibility of representation and further challenge after notification. Binding Nature of Final Findings and Prematurity of Writ Petition Relevant legal framework and precedents: Rule 18 of the ADD Rules provides that the Central Government may impose anti-dumping duty within three months of publication of final findings by notification. Section 9C of the Customs Tariff Act, 1975, provides for appeal to the Customs Excise and Service Tax Appellate Tribunal (CESTAT) against such notification. Prior judicial decisions have held that final findings are not binding until notification and that challenge to final findings alone is premature. Court's interpretation and reasoning: The Court reiterated the settled legal position that the DGTR's final findings are recommendatory and not binding until the Central Government issues a notification imposing anti-dumping duty. The Court relied on its earlier decision in a similar matter, emphasizing that the writ petition challenging final findings is premature. Key evidence and findings: The Court noted that no notification has been issued yet in the present case, and the Petitioners have the statutory remedy of appeal before CESTAT once the notification is issued. Application of law to facts: The Court held that since the final findings have not been accepted or notified by the Central Government, the Petitioners' challenge is premature and not maintainable at this stage. Treatment of competing arguments: The Petitioners raised concerns about ambiguity in appellate remedies, citing precedents. The Court acknowledged these but maintained the position that the petition is premature. Conclusions: The Court dismissed the writ petition as premature and left the Petitioners' rights and remedies open to be exercised in accordance with law post-notification. Procedural Fairness and Remedies Relevant legal framework and precedents: Principles of natural justice and procedural fairness require that all relevant submissions be considered, and parties be given an opportunity to be heard. The ADD Rules and Customs Tariff Act provide procedural safeguards and appellate remedies. Court's interpretation and reasoning: The Court acknowledged the Petitioners' grievance regarding non-consideration of their submissions but emphasized that the appropriate remedy is to make a representation to the DGTR, which must be considered in accordance with law. Key evidence and findings: The Court noted that the Petitioners expressed willingness to bring the issue to the DGTR's notice through representation. Application of law to facts: The Court directed that such representation be entertained and considered, but did not stay or restrain the notification process. Treatment of competing arguments: The DGTR did not oppose this approach and maintained that procedural requirements were met. Conclusions: The Court disposed of the petitions without interference but preserved the Petitioners' right to seek reconsideration through representation and subsequent remedies post-notification. 3. SIGNIFICANT HOLDINGS "The settled position in law therefore is that the final findings are not fully binding on the Central Government and, therefore, at this stage, the writ petition is pre-mature in the opinion of the Court." "In terms of Rule 18 of the ADD Rules, the Central Government may, within three months of the date of publication of final findings by the designated authority under rule 17, impose by notification in the Official Gazette, upon importation into India of the article covered by the final finding, anti-dumping duty not exceeding the margin of dumping as determined under rule (17)." "Once a decision is taken by the Central Government, an appeal would lie before CESTAT against the imposition of the Anti-Dumping Duty." "The Petitioners are free to make a representation to the DGTR regarding non-consideration of their submissions, which shall be considered in accordance with law." Core principles established include:
Final determinations on each issue:
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