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2018 (2) TMI 1994

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..... l is a like article to 2EH produced by the domestic industry and in the absence of 2EH, INA and 2PH can be used as raw materials for manufacturing plasticizers. From a perusal of the impugned proceedings none of the aspects referred and placed before the 2nd respondent authority by the petitioner company are neither considered nor appreciated. In fact, there is no mention about any of these aspects so as to initiate the investigation for imposition of antidumping duty on the import of INA and 2PH more particularly in the light of the definition as contemplated under Rule 2(d) of the Rules as well as the notification issued by the 2nd respondent vide No.63/1/2001-DGAD. This clearly establishes that the 2nd respondent has not considered any of these aspects and in a mechanical manner rejected the applications of the petitioner and in a routine course issued the impugned proceedings on a nonexisting ground that the authority does not find it appropriate to initiate anti-dumping investigation concerning imports of the products not being produced by the petitioner - the ground on which the impugned proceedings are passed is not available and alien to the language employed in Rule 2(d .....

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..... e writ petition, the impugned action of the 2nd respondent is assailed on the ground that the procedure followed is contrary to the provisions of the Customs Tariff Act, 1975 (for short, the Act ) and the rules made thereunder. The petitioner filed duly substantiated applications dated 18.10.2016 and 02.12.2016 with the 2nd respondent under Rule 5 of the Rules seeking initiation of investigation for imposition of anti-dumping duty on dumped imports of (i) 2-Ethyl Hexanon (2-EH) from Saudi Arabia and Singapore, (ii) Iso Nonanol (INA) from EU and Singapore and (iii) 2-Propylheptyl alcohol (2-PH) from EU. These Acyclic alcohols viz., 2-EHA, INA and 2-PH are produced by hydro formulation (oxo synthesis) of alkenes and are typically manufactured in industrial scale by addition of Syn gas (Co+H2) in a reactor. The petitioner also submitted that letters dated 04.01.2017 and 20.01.2017 issued by various consumers of 2-EHA, INA and 2-PH are placed before the 2nd respondent certifying that these companies are interchangeably using these products and they consider 2-EHA, INA and 2-PH as substitute products. It is also submitted that in the absence of 2-EHA, INA and 2-PH can be used as raw .....

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..... domestic producers as a while engaged in the manufacture of the like article and any activity connected therewith or those whose collective output of the said article constitutes a major proportion of the total domestic production of that article except when such producers are related to the exporters or importers of the alleged dumped article or are themselves importers thereof in such case the term domestic industry may be construed as referring to the rest of the producers: Provided that in exceptional circumstances referred to in sub-rule (3) of Rule 11, the domestic industry in relation to the article in question shall be deemed to comprise two or more competitive markets and the producers within each of such market a separate industry, if (i) the producer s within such a market sell all or almost all of their production of the article in question in that market; and (ii) the demand in the market is not in any substantial degree supplied by producers of the said article located elsewhere in the territory. 2(d) like article means an article which is identical or alike in all respects to the article under investigation for being dumped in India or in the abse .....

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..... e article under investigation, but another article, though not alike in all respects, which has got the characteristics closely resembling those of the articles under investigation also can be treated as a like article. Therefore, the impugned order passed by the 2nd respondent apparently is contrary to the provisions of the Act and the Rules. In fact, all the said three Acyclic alcohols are defined in terms of same essential characteristics such as mass, molecular weight, density, boiling point, flash point and etc. Even values of these characteristics are very comparable. The functions of all the three acyclic alcohols are also the same and they are primarily used in production of plasticizers used for softening of PVC etc. Learned senior counsel lastly contended that the 2nd respondent authority entrusted with the quasi judicial functions under the provisions of the Act ought to have considered the entire material placed before him and in the light of the definitions of domestic industry and like article under the Rules would have passed appropriate orders. However, a perusal of the impugned proceedings would indicate that the 2nd respondent has not considered any of the .....

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..... spondent failed to appreciate the evidence/information furnished by the petitioner company that they are interchangeable in usage and are considered to be substitute products. Even the notification issued by the 2nd respondent stated supra held that Isononanol is a like article to 2EH produced by the domestic industry and in the absence of 2EH, INA and 2PH can be used as raw materials for manufacturing plasticizers. However, from a perusal of the impugned proceedings none of the aspects referred to above and placed before the 2nd respondent authority by the petitioner company are neither considered nor appreciated. In fact, there is no mention about any of these aspects so as to initiate the investigation for imposition of antidumping duty on the import of INA and 2PH more particularly in the light of the definition as contemplated under Rule 2(d) of the Rules as well as the notification issued by the 2nd respondent vide No.63/1/2001-DGAD. This clearly establishes that the 2nd respondent has not considered any of these aspects and in a mechanical manner rejected the applications of the petitioner and in a routine course issued the impugned proceedings on a nonexisting ground tha .....

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