TMI Blog2018 (3) TMI 1505X X X X Extracts X X X X X X X X Extracts X X X X ..... e 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- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ef facts of the case are that, based on an application filed before the DA on behalf of the Domestic Industry (DI), for imposition of anti-subsidy/Countervailing duty on the import of subject goods from China, the DA initiated investigation in terms of provisions of Customs Tariff Act, 1975 and Customs Tariff (Identification, Assessment and Collection of Countervailing Duty on Subsidized Articles and for Determination of Injury) Rules, 1995. On completion of the investigation, he recommended for imposition of definitive Countervailing duty on the imports of subject goods 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 notificati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ping Duty was imposed on the same products in terms of Section 9A. Referring to the provisions of Section 9B, the learned Counsel submitted that no article shall be subjected to both Countervailing duty and Anti-Dumping Duty to compensate for the same situation of dumping or export subsidization for the said goods. As AD duty is already imposed, a further imposition of CV duty recommended and followed-up for the subject goods is not legally tenable. The learned Counsel also referred to the decision of WTO Report of the Appellate Body dated 11/03/2011 which dealt with exports from China and also regarding the concept of double remedies. He also referred to the decision of Apex Court in Gujarat Industries 2015 (326) E.L.T. 625 (S.C.) to sup ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... margin. Similarly, For subsidy also, India followed lower of the subsidy or injury margin. In this principle, India follows the practice of EU which is not similar to USA. It is again emphasized that both the duties put together never exceed the injury margin. As such, there is no illegality in the proceedings to impose CV duty on the subject goods. 7. The learned Counsel for DA defended the findings with reference to the scope of subject goods and also standing of the DA. Regarding the recommendations, he drew our attention to para 561 of the final finding. 8. The learned AR supported the findings of the DA and the Customs Notification imposing CV duty. 9. We heard all sides of the case and perused the appeal record. On the first ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... subject goods for the present investigation. Regarding the contention of the appellant that both AD duty and CV duty for subsidy cannot be levied on the same subject goods, we note that this aspect has been examined by DA and his findings are as follows: 561. With regard to the contentions raised by the interested parties about Section 9(B) of the Customs and Tariff Act prohibits imposition of both CVD and ADD to compensate for the same situation of dumping of export subsidization. The Authority notes that the POI of both the ADD investigations and present CVD investigation are different and therefore it is not a case of providing dual remedy. However, keeping in view the facts and circumstances of the present case and the overall int ..... X X X X Extracts X X X X X X X X Extracts X X X X
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