SRI VARAHI CHEMICALS Vs. COMMISSIONER OF CUSTOMS

JUDGEMENT

(1.) This writ petition is filed seeking for mandamus restraining the respondents from collecting any duty in the name of anti-dumping duty in terms of Notification No.50/2017-Customs (ADD) dated 18.10.2017 in respect of the imports made by the petitioner firm from the countries specified in Notification No.34/2012-Customs (ADD) dated 03.07.2012.

(2.) The case of the petitioner is as follows: The petitioner firm regularly imports Soda Ash from various countries. The soda ash so imported is classifiable under Heading 2836 2010 as well as 2836 2020 of the first schedule to the Customs Tariff Act , 1975 and besides the Basic Customs Duty, it also attracts anti-dumping duty in terms of Section 9A of the Customs Tariff Act, 1975, if the aforesaid product imported, is originated from People's Republic of China, European Union, Kenya, Iran, Pakistan, Ukraine and USA. In terms of Notification No.34/2012-Customs (ADD) dated 03 07.2012, anti-dumping duty at various rates were prescribed when soda ash is imported from these countries. The Designated Authority for anti-dumping duties initiated a mid-term review and in terms of Notification No.15/28/2014-DGAD dated 23.09.2016 recommended revoking of the anti-dumping duty levied in terms of the above Notification. The Notification No.55/2016-Customs (ADD) dated 21.12.2016 was issued by the Government of India rescinding Notification No.34/2012, which imposed anti-dumping duty on soda ash imported from those countries. The Government of India issued a Notification No.33/2017-Customs (ADD) dated 30.06.2017, extending the levy of anti-dumping duty upto 2nd July 2018 in respect of the imports. In pursuant to the order passed by the Hon'ble High Court of Gujarat dated 23.02.2017, the Designated Authority initiated fresh proceedings and issued Notification No.15/28/2014-DGAD dated 22.07.2017 and again recommended revocation of anti-dumping duty imposed on the subject goods. The Government of India issued another Notification No.50/2017-Customs (ADD) dated 18.10.2017, by rescinding Notification No.34/2012-Customs (ADD) dated 03.07.2012, but kept the recession in abeyance subject to the final order of the Hon'ble High Court of Gujarat in Special Civil Application No.14202 of 2017. The Hon'ble High Court of Gujarat finally disposed the matter on 11.06.2018 and remitted the matter back to the Designated Authority for deciding the issue afresh in accordance with law. In the above background, the validity of the original levy of anti-dumping duty in terms of Notification No.34/2012 and extended by Notification No.33/2017, was expired by 02.07.2018. Even though the right to collect such anti-dumping duty in terms of the said Notification got expired on 02.07.2018, the respondents continued to take a stand that the consignments of Soda Ash imported from the countries referred to in the Notification No.34/2012 will be subjected to anti-dumping duty. Hence, the present writ petition is filed seeking for the relief as stated supra.

(3.) A counter affidavit is filed by the respondents, wherein, it is stated as follows: The imposition of anti-dumping duty on the import of Soda Ash in terms of Notification No.34/2012 dated 03.07.2012 levied on import from the specific countries with different rates for a period of five years valid upto 02.07.2017. Thereafter, by Notification No.55/2016- Customs (ADD) dated 21.12.2016 based on the mid-term review of Notification No.15/28/2014-DGAD dated 23.09.2016, the Central Government proposed for revoking the levy of ADD imposed in terms of Notification No.34/2012. The above said proposal for revoking Notification No.34/2012 by the Central Government was challenged before the Hon'ble High Court of Gujarat by the local manufacturers. Consequent to the above said litigation, ADD Notification No.33/2017- Customs (ADD) dated 30.06.2017 was issued extending the levy of ADD upto 02.07.2018. The Hon'ble High Court of Gujarat vide common judgment dated 23.02.2017, quashed the disclosure statements and final findings dated 23.09.2016 and issued direction to initiate fresh proceedings. Accordingly, the Designated Authority initiated fresh proceedings and issued Notification No.15/28/2014-DGAD dated 23.09.2016 recommended revocation of anti-dumping duty imposed on the subject goods. The same was again challenged by some domestic manufacturers before the Gujarat High Court. Thereafter, the Notification No.50/2017-Customs (ADD) dated 18.10.2017 was issued wherein, levy of ADD in terms of Notification No.34/2012 continued beyond the expiry period until the outcome of final order of the High Court of Gujarat. The Hon'ble High Court of Gujarat on 11.06.2018 disposed all applications in the subject matter and remitted the matter back to the Designated Authority for deciding the issue afresh in accordance with law. In the meantime, the DGAD rendered the final findings vide proceedings F.No.7/5/2017-DGAD dated 14.12.2018 concluding that the continuation of anti-dumping duty is not warranted and accordingly, did not recommend the extension of the anti-dumping duty on import of subject matter from the subject countries. The said order dated 14.12.2018 is an appealable order before the Customs, Excise and Service Tax Appellate Tribunal. Hence, the interest of Revenue has to be protected by imposing certain conditions on the petitioner.