ESSAR STEEL LIMITED Vs. UOI

JUDGEMENT

(1.) By this writ petition the petitioners have laid a challenge to the order dated 27th August, 2003 passed by the Designated Authority in exercise of its powers under Section 14(b) of the Customs Tariff Act, 1995 and Customs Tariff (Identification, Assessment and Collection of Anti Dumping Duty on Dumped Article and for Determination of Injury) Rules, 1995 whereby the Designated Authority in the Directorate of Anti-Dumping in the Ministry of Commerce, New Delhi informed the petitioners of its decision to terminate anti- dumping investigation into imports of Hot rolled coils, Sheets, Plates and Strips originating in or exported from South Africa, Rumania, Venezuela, Saudi Arabia, European Union, Australia, Canada and Singapore.

(2.) Both the petitioners are stated to be engaged in the manufacture and production of steel and steel products . The Steel Authority of India, the petitioner no. 2 has claimed that it produces approximately 50% of India's steel, which has been disputed by the intervenor.

(3.) India has effectuated measures to protect the domestic industry following the principles laid down in the General Agreement on Tariffs and Trade, 1994 (GATT for brevity) whereby the member countries agreed on certain principles to be followed for imposition of anti-dumping duties, countervailing duties and safeguard measures. Member countries of the World Trade Organisation were party to this agreement. The legislature effected statutory amendments to the Customs Tariff Act, 1973 which were effectuated with effect from 1st January, 1995 to bring the statute in line with the provisions of Article 6 of GATT, 1994. Dumping, in simple language, takes place when an exporter sells a product to India at a price less than the price prevailing in its domestic market. Though dumping per se has been held not to be condemnable. However, if such dumping causes or threats to cause material injury to the domestic industry of India, the statute has prescribed certain measures to be taken. There is no dispute that the Designated Authority has been duly nominated by the Central Government in compliance with the requirements of the statute.