Gujarat HC Puts 6 Week Stay On Centre's Move To Withdraw Anti-Dumping Duty On PVC Flex Films Originating From China
While hearing a case challenging the Central Government's move to withdraw anti-dumping duty on the imports of "PVC Flex Films" from China, the Gujarat High Court last week stayed the notification of the Central Government for a period of six weeks.This order has been made by the bench of Justice J. B. Pardiwala and Justice Nisha Thakore in view of the pendency of an appeal before the...
While hearing a case challenging the Central Government's move to withdraw anti-dumping duty on the imports of "PVC Flex Films" from China, the Gujarat High Court last week stayed the notification of the Central Government for a period of six weeks.
This order has been made by the bench of Justice J. B. Pardiwala and Justice Nisha Thakore in view of the pendency of an appeal before the Special Bench of the Tribunal under Customs Tariff Act, 1975 challenging the withdrawal of the said anti-dumping duty.
The case in brief
Since China was dumping PVC Flex Films in India, the Union Government, in August 2016 imposed Anti-dumping duty on the subject goods for a period of five years.
It may be noted that 'dumping' is said to happen when a country (in the instant case, China) or a firm exports an item (in the instant case, PVC Flex Films) at a price, which is lower than the price of that product in its domestic market (in the instant case, India).
Countries usually impose duties on such dumped products so that the domestic players involved in the manufacturing of the dumped products, get a level-playing field.
Further, the period of five years was to expire in August 2021, however, before the expiry of the said period, a fresh Notification was issued in June 2021 extending the levy of the Antidumping duty for a further period of six months.
Now on October 2021, a notification came to be issued drawing the final conclusions wherein the Designated Authority recommended that the Anti-dumping duty on the subject goods should be withdrawn.
Aggrieved by the said withdrawal, the writ applicants (primarily All India Laminated Fabric Manufacturers Association) preferred an Appeal before the Appellate Tribunal under Section 9C of the Customs Tariff Act, 1975 in December 2021, however, since no bench was available, the Tribunal could not take up the appeal of the writ applicant.
In the meantime, on January 24, 2022, the Central Government notified the revocation of the anti-dumping duty imposed on "PVC flex films" originating from China and now, there would not be any levy of Anti-dumping duty post-January 31, 2022.
Against this backdrop, Petitioner Qrex Flex Pvt Ltd, which is engaged in the business of manufacturing PVC Flex Films and is working in the protected domestic industry moved to the High Court.
It stated that the recommendation of the Designated Authority was challenged before the concerned Tribunal, however, before the appeal could be taken up by the tribunal, the Union Government had come out with a notification withdrawing the anti-dumping duty on the said product.
It was its contention that since the appeal is pending, the decision to withdraw the anti-dumping duty be stayed so that in the meantime, the appeals case be heard by the concerned tribunal.
Therefore, taking into account the concerns of the petitioner, the Court last week decided to stay the 24th January notification for a period of six weeks so that in the meantime, the appeal could be heard by the tribunal.
Read more about the case and court's previous order here: "Love Or Hate China But Can't Ignore It": Gujarat HC Stays Centre's Move To Withdraw Anti-Dumping Duty On PVC Flex Films
Court's order
During this interregnum period of six weeks, the Court has asked the Special Bench of the Tribunal to take up the appeals for hearing and dispose them of in accordance with law before the period of six weeks comes to an end.
"We are of the view that a litigant should not suffer because the Special Bench of the Tribunal is not available. The Tribunal has to make the necessary arrangement for urgent hearing of the appeals one filed by the Association. We are also informed that between 14th February 2022 and 18th February 2022, the Tribunal is going to have some special sitting. If that be so, then the Tribunal should take up the appeals for hearing and decide them in accordance with law," the Court remarked as it disposed of the instant writ application.
The Court has issued a specific direction that the Notification dated 24th January 2022 (withdrawing anti-dumping duty) shall remain stayed from its operation for a period six weeks, and at the same time, the operation of the Notification dated 8th August 2016, as extended by the Notification dated 30th June 2021, shall continue for a period of six weeks.
"We direct the Tribunal to take up the appeals for hearing filed by the Association at any cost and decide them in accordance with law before the period of six weeks comes to an end. We expect the Union also to ensure that the Tribunal takes up the appeals for hearing and are decided in accordance with law before the expiry of six weeks," the Court concluded by observing thus.
Senior Advocate Mihir Joshi appeared with Advocate Gargi R. Vyas for the Petitioner and ASG Devang Vyas appeared for the Union of India.
Case title - Qrex Flex Pvt Ltd v. Union Of India
Case Citation: 2022 LiveLaw (Guj) 11
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