- (1.) The first petitioner Rajasthan Textile Mills Association is a Society registered under the Societies Registration Act having 37 textile mills as its constituent members. All of them are operating in the State of Rajasthan. The second petitioner i.e. the Indian Spinners Association is also a registered Society having 42 textile mills operating in the State of Rajasthan, Maharashtra, Haryana, Himachal Pradesh etc. The list of the member textile Mills of the first and second petitioners has been given in the Schedule appended to the writ petition. All the constituent Mills of the Association are importers and industrial users of Polyester staple fibre, hereinafter referred to as "PSF". The petitioner Associations have sought/ direction to quash the initiation notification dated 25th June, 2001 by which anti- dumping investigation concerning imports of certain "PSF" originating in or exported from Korea, R.P., Malaysia, Taiwan and Thailand was initiated. The petitioners have also challenged the order dated 15- 10-2001 passed by the Designated Authority in compliance of the orders of the Karnataka High Court in M/s. Madura Coats Limited justifying the initiation of the investigation. The second writ petition being D.B. Civil Writ Petition No. 718/2002 has been filed by the same petitioners, seeking direction to quash the preliminary findings of the Designated Authority dated 16-1-2002 recommending levy of provisional anti-dumping duty on import of subject goods originating in or exported from the subject countries.
(2.) The facts giving rise to the instant writ petitions are that the Association of Synthetic Fibre Industry on behalf of the Indian Domestic PSF Industry filed an application under sub-rule (1) in accordance with sub-rule (2) of Customs Tariff (Identification, Assessment and Collection of Anti- dumping Duty on Dumped Articles and for Determination of Injury) Rules, 1995, hereinafter referred to as the Rules of 1995' before the first respondent i.e. the Designated Authority. The applicant respondent-Companies namely M/s. Reliance Industries Limited and M/s. Indo Rama Synthetics (India) Ltd. along with the supporting Companies viz. India Polyfibres Ltd., M/s. Orissa Polyfibres Limited and M/s. Terene Fibres India (P) Limited claim to have 83% of the total domestic production of the subject goods. According to the applicants, PSF of the description mentioned in the application are being dumped in India from five countries viz; Indonesia, Korea R.P., Malaysia, Taiwan and Thailand. The dumping by these countries has caused serious price depreciation and margin erosion. It is alleged that inspite of the fact that the PSF market in India is showing healthy growth, the domestic industries in the country face with the dumped imports at extremely low price, has no other alternative but to match landed cost of imports/offers from these countries in order to protect its market share. Thus, according to the applicants, the adverse impact of the dumped imports on the domesticindustries has been that it has not been able to realize a reasonable selling price which could assure a fair return on its investment. The grievances of the applicant respondents can be summarized as follows : (a) The dumping margins from the subject countries are significant and volume of imports is more than de minimis ; (b) The total import from the subject countries of subject goods have significantly increased in absolute terms as also relative to the total PSF imports; (c) The applicants had to sell at the lower price to maintain their market share which led to actual losses or extremely low profitability; (d) The Indian Industry has thus not only suffered material injury on account of dumping from the subject countries but is also facing threat of material injury to the domestic industry in the foreseeable scenario.
(3.) The Designated Authority on preliminary scrutiny of the application found certain deficiencies, which were subsequently rectified. The period of investigation as suggested from March, 2000 to November, 2000 was changed to 1-1-2000 to 30th September, 2000. Accordingly, the applicants submitted a revised petition taking 1-1- 2000 to 30th September, 2000 as the period of investigation. The Designated Authority on the basis of the evidence submitted prima facie found that there was sufficient evidence of dumping of the subject product from the exporters of the four countries excluding Indonesia. The Designated Authority also found the prima facie evidence with respect to the statement on normal value, export price and dumping margin. It was further found that there was significant increase in the market share of the imports of the subject goods from the subject countries; decline in the sales realization; losses of the negligible profits of the domestic industry and failure of the domestic industry to realize fair and reasonable price from sale of the subject goods. This prima facie indicated collectively and cumulatively that the domestic industry suffered material injury on account of dumping. The Designated Authority also found that huge surplus production in the subject countries constitutes a threat of material injury to the domestic industries. Thus, the Designated Authority decided to initiate investigation against the alleged dumped imports of certain PSF originating from the four Countries. Accordingly, the Authority issued impugned public notice dated 25th June, 2001 initiating anti-dumping investigation concerning import of certain PSF being cleared under Chapter 55 of the Customs Tariff Act, 1975 originating in or exported from Korea R.P., Malaysia, Taiwan and Thailand. The Authority forwarded a copy of the public notice to the Associations of the manufacturers in respective countries of the export and gave them an opportunity to make their views known in writing within a period of forty days from the receipt of the letter. A copy was also forwarded to known importers and the known users of PSF and advised them to submit their views. A request was also made to the Central Board of Excise and Customs to arrange details of Import of certain PSF. The Authority in accordance with the provisions of Rule 6(4) sent a questionnaire to elicit the relevant information to the manufacturers in respective countries of export.;