ACP manufacturing industry has felt relaxed as the CESTAT, Delhi verdict came to their favour recently. Giving a final verdict on the appeal made by ACP Manufacturer Association against Union of India, its designated authority, HINDALCO and others, the Customs, Excise and Service Tax Appelate Tribunal (CESTAT), Delhi held that if domestic industry doesn’t manufacture/produce colour coated coil, antidumping duty cannot be imposed on the same.
"The domestic industry did not provide any production quantity in regard to the colour coated coil nor the same have been examined by the designated authority in the final findings. There is nothing on the record which may indicate that the domestic industry is present in the market in any commercial way. It is only at the stage of rejoinder, a copy of which was not even made available to the appellant," the verdict says.
The ACP manufacturing industry welcomed the verdict as it has given a relief to the industry. The expert says the industry is happy because these products for manufacturing ACP are based on imports. The colour coated coil is a major component in manufacturing ACP, which is made available in India majorly from imports. Although, a few companies claim that they have installed colour coating lines but that are not sufficient to fulfill the industry needs.
It is to be noted that ACP Manufacturer Association has filed the appeal to remove with a prayer that the final findings dated 07.09.2021 of the designated authority be modified so as to exclude the product ‘colour coated aluminium coils’ from imposition of anti-dumping duty. "In this connection, it needs to be noted that production of colour coated coil requires installation of production facilities and significant investments," the tribunal said.
"It requires a coating machine and installation of one coating machines facility would cost about Rs. 5 crores to give a production of about 150 MT. For a demand of 40,000 MT colour coated coil in India, atleast 20 coating machines would be required to be installed involving an expenditure of Rs. 100 crores," it added.
The second relief that has been claimed is to also modify the consequential customs notification 06.12.2021 issued by the Central Government to exclude ‘colour coated aluminium coils’ from imposition of anti-dumping duty retrospectively w.e.f. 06.12.2021 and refund of the excess/additional duty so collected on the import of ‘colour coated Aluminium coils’ w.e.f. 06.12.2021.
The tribunal concluded and held that if the domestic industry does not manufacture/produce colour coated coil, this product would have to be excluded from scope of the product on which anti-dumping duty has been imposed under the customs notification dated 06.12.2021 issued by the Central Government on the basis of the final findings dated 07.09.2021 issued by the designated authority