TMI Blog2018 (3) TMI 1395X X X X Extracts X X X X X X X X Extracts X X X X ..... imported product which led to the consumers increasingly switching over to imported Chinese products. It is clear that the dumped imports resulted in sale of imported goods below the cost of sale of DI. The conclusion of the DA regarding causal link between dumped imports and the injury to the DI are categorical. The imports of subject goods have increased in absolute terms over the entire period of investigation. These imports were under-cutting the prices of DI. The price under- cutting caused by the dumped imports resulted in increase in market share of imports and decline in market share of DI. For the injury analysis, the DA had examined all the mandatory parameters prescribed under the law. There is no need for segment wise analysis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7-CUS (ADD) dated 18/09/2017 issued by the Ministry of Finance imposing definitive Anti Dumping Duty on new/unused pneumatic radial tyres with or without tubes and/or flap of rubber (including tubeless tyres) having normal rim dia code above 16 , used in buses and lorries/trucks , (hereinafter referred to as the subject goods ) originating in or exported from China PR. The first appellant is a producer and exporter of subject goods in China. They are aggrieved by the imposition of AD duty, as stated above. The second appellant is a representative body of Automotive Tyre Manufacturers Association [ATMA] (DI). The appeal by them is against imposition of lesser anti dumping duty on the subject goods. Before proceeding with the appeals on mer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned by the DA only 4 parameters indicated the possibility of injury and remaining 11 parameters were all significantly positive with no scope for injury. On previous occasion also the subject goods were examined for anti dumping duty and the Tribunal held that there is no material injury to the DI. The learned Counsel relied on the decision of the Tribunal in Bridge Stone Tyre Manufacturing (Thailand) vs. Designated Authority 2011 (270) E.L.T. 696 (Tri. Del.). He further submitted that the financial position and various parameters for DI are much better in the present case. 4. The learned Counsel submitted that the profit of DI had gone up and they have also shown improved performance with increase of return on capital employed. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e standards which are reckoned by DI normally. Post POI profit declined. The learned Counsel for DI submitted that it is a known fact that various countries including advanced countries proceeded against Chinese tyre imports and imposed anti dumping duties which are in many cases much higher than what is notified for Indian imports. She mentioned specific instances of such imposition. Further, the learned Counsel also distinguished the decision of the Tribunal in Bridge Stone Tyre Manufacturing (Thailand) (supra). The Tribunal in the said case dealt with various factual errors in the finding recorded by the DA. In the present case, there is no such factual error in the analysis. The question of availability of local tyres for the domestic u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appellant at ex-factory level was determined on the available facts by the DA. On close perusal of the impugned final findings, we note that the demand for the subject goods was showing raising trend. The imports from subject country increased by 12 times between 2012-2013 and POI. The market share of DI had in fact declined during the material period. The DA has clearly recorded that there is a significant price gap between domestic and imported product which led to the consumers increasingly switching over to imported Chinese products. It is clear that the dumped imports resulted in sale of imported goods below the cost of sale of DI. The conclusion of the DA regarding causal link between dumped imports and the injury to the DI para 104 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e return on capital employed. In common parlance return on investment should be bench marked with possible income when capital is deployed in other secured field of investment like banks etc. Further, the cost of borrowing varies from country to country. It is necessary to note that ROCE of 22% is generally considered as reasonable and adequate for DI. These findings have been upheld in appeals also. 11. It is not out of place to record here that China has over capacity in the manufacture of tyres and the industry in that country is export oriented and aided by policy of the Government of China. Admittedly, a number of countries such as Brazil, Turkey, Colombia, Egypt and U.S. have either imposed AD duty against import of subject goods f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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