RELIANCE INDUSTRIES LTD. Vs. DESIGNATED AUTHORITY THE

JUDGEMENT

(1.) MINISTRY of Finance, Department of Revenue, imposed anti -dumping duty on Pure Terephthalic Acid (PTA) originating in or exported from Korea RP, Thialand and Indonesia under Notification No. 13/92 dated 28.4.98. The rate of duty so imposed on Korean Supplies varied from Rs.1130/ - PMT to Rs. 1490/ - PMT. This was done based o n the final Findings and recommendations arrived at by Designated Authority, Ministry of Commerce vide his Final order No. 14/1/94 ADD Dated 19.3.98. The Final Findings were reached byu the Designated Authority after investigating imports and domestic production for the period April, 1996 to October, 1996 with regard to export prices and Indian manufacturing cost of PTA. The investigation had revealed a dumping margin varying from 6.65% to 9.63% in respect of various exporters of PTA from Korea RP.

(2.) RULE 23 of Customs Tariff (Identification< Assessment and Collection of Anti -Dumping on Dumped Articles and for Determination of Injury) Rules 1995 provides that the Designated Authority shall review the anti dumping duty imposed on dumped article periodically. In teams of this review provision, Reliance Industries Ltd., the leading domestic manufacturer of PTA, filed an application before the Designated Authority seeking upward revision of anti -dumping duty. The application contended that the margin of dumping of PTA from Korea RP had increased subsequent to the imposition of anti dumping duty under Notification No. 13/92 and that domestice industry producing PTA was suffering greater injury on account of such increased dumping margin. The application, therefore, urged that rate of anti -dumping duty imposed on PTA originating in or exported from Korea RP be suitably increased. The Designated Authority undertook a review which culminated in the Final Findings dated 29th May, 2000. This Final Finding recommended imposition of anti dumping duty in respect of exports by M/s Samsung Petrochemical Co. Limited @ US 16.07 PMT and in respect of any other exporter f rom Korea RP @ 17.04 US PMT. Pursuant to this recommendation, Government of India issued Notification No. 99/2000 -Cus dated 11.7.2000 revising the anti dumping duty on PTA originating in or exported from Korea RP at the revised rates recommended in the Final Findings of the Designated Authority. The effect of this Notification was to lower the anti dumping duty in respect of exports from South Korea since the revised duty worked out in Indian Rupees to Rs. 678/ PMT and Rs. 719/ - PMT as against the duties ranging from Rs. 1130/ - to Rs. 1490/ - imposed under Notification No. 13/92 -Cus dated 28.4.98. M/s Reliance Industries Ltd. has filed the present appeal, being aggrieved with the reduction of duty (strangely though on an application filed by them) made under Notification Mo. 99/2000 dated 11.7.2000.

(3.) THE appeal submits that the rate of duty arrived at is entirely inconsistent with the relevant facts of the case and the findings reached by the Designated Authority itself. The appeal submits that the findings and the recommended rates of duty can not go together. The appellants have pointed out that the Final Findings, after investigating imports from Korea PR and domestic production for the period from April 1998 to September, 1998 had reached the conclusion that dumping margin had increased and was in the range of 14.5% to 26.76% during the review period as against the dumping margin of 9.25% to 9.63% during the initial investigation. The steep increase in dumping margin, the appellants contend, called for increase (and not reduction) in the rate for anti -dumping duty to offset the increased adverse effect on domestic industry. The appellants have also pointed out that the designated Authority had also reached the finding that Indian industry had suffered injury on account of the increased dumping margin in respect of imports of PTA from Korea RP. The Designated Authority had found at the end of the investigation that there was decline in the net realisation on the manufacture of PTA by the domestic industry, that on account of matching of the selling price with the landed value of dumped impart, Indian industry had been selling below non -injurious price, that sales below non -injurious price was causing financial loses to the domestic industry, that imports from Korea RP had led to price depression in the selling price of the product. The appellants have submitted that despite such findings in favour of the domestic industry, the Designated Authority recommended reduction in the rates of anti -dumping duty than was enforce. It is the submission of the appellants that the Designated Authority has grossly erred in determining the rate of duty required to be imposed on the dumped imports of PTA.