Case Law Details
Commissioner of Customs Vs First Engineering Plastics India Pvt Ltd (CESTAT Chennai)
Introduction: In a recent case, the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) Chennai addressed the issue of whether Anti-Dumping Duty (ADD) is leviable on the import of used and second-hand machinery, particularly Injection Moulding Machines, originating from China. The case involved a dispute over the imposition of ADD on such imported goods, which were filed under the EPCG Scheme.
Analysis: The importer filed a Bill of Entry for the import of used and second-hand Injection Moulding Machines and Star Robotic Arms, which were subjected to a valuation by a Chartered Engineer. The value apprised by the Chartered Engineer was based on the estimated value of new machinery, as per the year of manufacture. The Department, however, observed that injection moulding machines originating from China attract ADD at a rate of 174% as per Customs Notification No.39/2010.
The crux of the issue was whether ADD could be levied on used and second-hand machinery, as it was argued that such duty was intended to protect domestic industries from dumped new products, not used ones. The Commissioner (Appeals) referred to a similar case involving Trinity Exporters, where the imposition of ADD on second-hand machinery was set aside.
The CESTAT Chennai, in line with the Trinity Exporters case, recognized that the purpose of ADD is to protect domestic industries from dumped new products and to serve as a price leveller. The tribunal opined that comparing new domestic products with second-hand imported goods does not make legal sense, as the intent and purpose of ADD are not applicable to used machinery.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Dear sir,
pls let us know about the Anti – Dumping Duty on injection moulding machine origin from china new or used
awaiting for reply
Thanking You
kamlesh