IDEA CELLULAR LTD. Vs. UNION OF INDIA

JUDGEMENT

(1.) BY this petition under Article 226 of the Constitution of India, the petitioner is seeking a declaration that Note 3 of the Notification No. , dated 16 -12 -2010 is ultra vires to the Customs Act, 1962 and the Customs Tariff Act. The petitioner is also seeking to quash and set aside this Note and thereafter a Writ of Mandamus directing the respondents not to give effect to this Note and impose duty on SDH part imported as parts of non -SDH transmission equipments. The issue raised in this petition is of Anti Dumping Duty.

(2.) IT is common ground that the present petitioner is a company incorporated under the Companies Act, 1956 and inter alia engaged in the business of providing telecom services in various circles across India. It is also a consumer of various telecom transmission equipments for use in its telecom network. The first respondent has issued the subject notification and the second respondent is the Designated Authority and rather a Directorate General of Anti -Dumping and Allied Duties. The challenge in this Writ Petition arises in the backdrop of antidumping measures evolved by the State from time to time. The dumping of goods in India has been termed as counter productive and affects the Indian economy vitally. It causes material injury to the domestic industries and that is how in terms of Section 9A of the Customs Tariff Act read with Anti Dumping Rules, the second respondent investigates the cases of dumping of goods in India unlawfully and illegally and seeks to recover anti -dumping duty.

(3.) IN the meanwhile, the Directorate of Revenue Intelligence (DRI) commenced investigation and the petitioner in paragraphs 13 to 15 of the petition has narrated the outcome of the same. The Writ Petition has been amended by introducing paragraph 15A and stating that after the present petition was served, the DRI, Mumbai has issued a Show Cause -cum -Demand Notice dated 18 -12 -2014. That is in terms of Section 124 read with Section 28 of the Customs Act and Section 9A(8) of the Customs Tariff Act, inter alia calling upon the petitioner to show cause as to why anti -dumping duty of Rs. 9,38,33,391/ - in respect of goods which are imported as parts of non -SDH transmission equipments, should not be demanded and recovered from the petitioner alongwith interest and penalties. "Annexure E" is the copy of the Show Cause Notice. It is conceded that no order has been passed in furtherance of the said show cause notice as yet and the matter is pending.