CESTAT quashed 2.47% CVD on continuous cast copper wire

Metrod (Malaysia) Sdn Bhd Vs Designated Authority Directorate General of Antidumping & Allied Duties (CESTAT Delhi)

Conclusion: Since it was not possible to sustain the CVD levied for ‘other program’ and if the other program was excluded from the subsidy margin determination, assessee would fall below the de minimis level. The imposition of 2.47% CVD on assessee at serial no. 8 of the notification dated January 8, 2020 was, therefore, liable to be set aside.

Held: Assessee was a manufacturer of copper rods, wire rods, drawn copper wires and strips. Metrod Copper Products Sdn Bhd and Metrod(OFHC) Sdn Bhd were wholly owned subsidiaries of assessee and were inter alia engaged in marketing and selling copper wires manufactured by assessee. Savli Copper Products Pvt Ltd. was an Indian related party of assessee and had imported copper wires manufactured by assessee into India. The notification dated January 08, 2020 that was issued by the Government of India on the recommendation of the Designated Authority imposing countervailing duty of 2.47% on Continuous Cast Copper Wire produced by Metrod Malaysia Sdn Bhd² originating in Malaysia and exported from any country, including Malaysia, to India. Assessee challenged on two grounds – the first was that if the “other program” was excluded from the subsidy margin determination, assessee would fall below the de minimis level and, therefore, would be excluded from the purview of the impugned notification and the second was “Copper Wire” manufactured by assessee was not akin to “Continuous Cast Copper Wire Rods”, for which Hindalco was a majority producer (Domestic Industry) and in respect of which complaint was filed and an investigation was initiated. As such, no CVD could have been imposed on drawn Copper Wire manufactured by assessee i.e. Copper Wire of less than 6mm manufactured by using the drawing process and falling under CTH 74081990. In the instant case, it was seen that the Designated Authority, at no point of time prior to final findings, suggested or alleged that the Government of Malaysia failed to provide the requisite information. The records indicated that the Government of Malaysia had filed the Questionnaire Response and if there was any doubt, the Designated Authority could have required the Government of Malaysia to provide the information. Thus, it was not possible to sustain the CVD levied for “other program” and if this program was excluded from the subsidy margin determination, assessee would fall below the de minimis level. The imposition of 2.47% CVD on assessee at serial no. 8 of the notification dated January 8, 2020 was, therefore, liable to be set aside. Such being the position, it would not be necessary to examine the submission raised on behalf of the assessee that the drawn “Copper Wire” manufactured by assessee was not akin to “Continuous Cast Copper Wire Rods”. In the result, the imposition of 2.47% CVD on assessee at serial no. 8 of the notification dated January 8, 2020 was set aside.

FULL TEXT OF THE CESTAT JUDGEMENT

1. The notification dated January 08, 2020 that was issued by the Government of India on the recommendation of the Designated Authority imposing countervailing duty¹ of 2.47% on Continuous Cast Copper Wire produced by Metrod Malaysia Sdn Bhd² originating in Malaysia and exported from any country, including Malaysia, to India has led to the filing of these four appeals.

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