"Love Or Hate China But Can't Ignore It": Gujarat HC Stays Centre's Move To Withdraw Anti-Dumping Duty On PVC Flex Films

This observation was made by the bench of Justice J. B. Pardiwala and Justice Nisha Thakore which was hearing a petition filed by one Qrex Flex Pvt Ltd which is aggrieved with the Central Government's decision to withdraw anti-dumping duty on PVC Flex Films.

The case in brief

Petitioner Qrex Flex Pvt Ltd is engaged in the business of manufacturing PVC Flex Films and is working in the protected domestic industry, and since China was dumping PVC Flex Films in India, therefore, 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conclusions wherein the Designated Authority recommended that the Anti-dumping duty on the subject goods should be withdrawn.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 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.

Court's order

Against this backdrop, the Court opined that since an appeal has already been filed before the Tribunal, it will be in the fitness of the things if the Tribunal hears the Appeal and decides the same on its own merits in accordance with the law.

However, till the time the Tribunal decides, the Court sought to stay the operation of the Central Government's notification dated 24.01.2022 staying the withdrawal of the anti-dumping duty for a period of six weeks.

"What is in our mind is that during this period of four weeks, the Tribunal should take up the Appeals and decide them on their own merits in accordance with the law," the Court added.

However, to the aforesaid suggestion, the Additional Solicitor General of India submitted that he would like to seek appropriate instruction from the authority concerned in this regard and revert to the Court, on January 27.

To this, the Court stayed the notification till January 27 and posted the matter for a day after tomorrow, when further orders shall be passed subject to ASG's submissions.