LexAUTOMOTIVE TYRE MANUFACTURERS ASSOCIATION versus THE DESIGNATED AUTHORITY & ORS.
Open in Lexace · Ask the AI about this caseJudgment (excerpt)
[2011) 1 S.C.R. 198
A
AUTOMOTIVE TYRE MANUFACTURERS ASSOCIATION
B
v.
THE DESIGNATED AUTHORITY & ORS.
{CIVIL APPEAL NO. 949 OF 2006 ETC.)
JANUARY 7, 2011
[O.K. JAIN AND H.L. DATIU, JJ.]
Customs Tariff (Identification, Assessment and
Collection of Anti-Dumping Duty on Dumped Articles and for
C Determination of Injury) Rules, 1995:
Rules 4, 5, 6, 10 11 and 17 r/w s. 9 of Tariff Act -
Investigation and findings by Designated Authority as to
existence, degree and extent of alleged dumping,
D determination of normal value, export price and margin of
dumping and determination of injury -HELD : DA performs
quasi-judicial functions under the Tariff Act read with Rules
and is bound to act judicially -While determining the .
existence, degree and effect of the alleged dumping the DA
determines a '/is' between the persons supporting the levy of
E duty and those opposing the said levy -Customs Tariff Act,
1975 -s.9-C.
Rules 4, 5, 6, 10, 11
and 17 - Investigation as to
existence, degree and extent of alleged dumping and final
F finding thereon - Opportunity of oral hearing - HELD: In view
of the elaborate procedure prescribed in r. 6 which the DA is
obliged to adhere to, while conducting the investigation, duty
to follow the principles of natural justice is implicit in the
existence of power conferred on him 'under the Rules - The
G procedure prescribed in the Rules imposes a. duty on DA to
afford to all the parties, who have filed objectionand adduced
evidence, a personal hearing before taking a final decision
in the matter - Even written arguments are no substitute for
an oral hearing - In the instant case, the entire matter had
H
198
AUTOMOTIVE TYRE MANUFACTURERS ASSOCIATION v. 199
DESIGNATED AUTHORITY
.
been collected by the predecessor of the DA, but the final
A
findings in the form of an order were recorded by the
successor DA who had no occasion to hear the appellants -
The final order of the new DA offends the basic principle of
natural justice and, as such, is quashed - Consequently, the
decision of the Tribunal is set aside and the notification dated
B
27.4.2006 is quashed - Administrative Law - Principles of
natural justice - Oral hearing - Doctrines - Audi alteram
~
partem.
Customs Tariff Act, 1975:
c
s.9-A - Anti dumping duty - Refund of- HELD: In view
of the fact that importers and its constituent members have
passed on the burden of levy on third persons, they cannot
claim refund of the anti-dumping duty levied - Doctrine of
unjust enrichment is attracted - Customs Tariff (Identification,
D
_ _,.__
Assessment and Collection of Anti-Dumping Duty on
Dumped Articles and for Determination of Injury) Rules, 1995.
Words and Phrases:
"Natural justice" - Connotation of.
E
The domestic tyre manufacturing units, represented
-"'.
by the appellant (ATMA), imported Nylon Tyre Cord Fabric
(NTCF) from various countries, including China, as one
of their raw materials for manufacture of tyres. In 2003,
F
respondent no. 3, the Association of Synthetic Fibre
Industry (ASFI), filed an application under the Customs
Tariff (Identification, Assessment and Collection of Anti-
Dumping Duty on Dumped Articles and for Determination
~
of Injury) Rules, 1995 before the Designated Authority
G
(DA), inter alia, praying for imposition of anti-dumping
duty u/s 9A of the Customs Tariff Act, on imports of NTCF
from China. The DA issued the notification in terms of
Rules 5 and 6 of the 1995 Rules indicating the period of
investigation from 1.4.2002 to 30.6.2003. After conducting
H
200
SUPREME COURT REPORTS
[2011] 1 S.C.R.
A investigation, the DA recorded preliminary findings and
issued a public notice by Notification dated 30.6.2004,
recommending imposition of provisional anti-dumping
.duty on NTCF originating in and exported from China.
Accordingly, the Central Government, by Notification
B dated 26.7.2004 imposed the provisional anti-dumping
duty. The DA granted a public hearing to all the parties
on 1.9.2004. However, on 1.11.2004 the said DA was
transferred and a new officer took over as the DA, who
sent the disclosure statement to all the parties concerned
c on 12.1.2005. The DA then issued final findings by
Notification dated 9.3.2005, recommending the imposition
of anti-dumping duty on NTCF originating from China.
The Central Government accepted the final findings of the
DA and issued Notification dated 27.4.2005 levying anti-
D dumping duty at dExcerpt shown. Read the full judgment & AI analysis in Lexace.