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Reliance Industries Limited v Designated Authority

Supreme Court of India

11 September 2006
Case Analysis
Markandey Katju, Ashok Bhan
Where Reported
2006 Indlaw SC 588; (2006) 10 SCC 368; 2006
(202) E.L.T. 23; 2006(9) SCALE 124; [2006]
Supp6 S.C.R. 1
Case Digest
Subject: Customs
Keywords: Any Article, Finance Act, 2004,
Customs Tariff (Amendment) Act, 1995, Customs
Tariff (Second Amendment) Act, 1982, Finance
Summary: Customs Tariff Act, 1975, s. 9C -
Customs Tariff (Identification, Assessment and
Collection of Anti-Dumping Duty on Dumped
Articles and For Determination of Injury) Rules,
1995, rr. 4, 7, 10, 11 and 17 - Notification No.
82/2000 D/- 30-05-2000 - Whether designated
authority had erred in holding that imports from
Japan and Malaysia were above non-injurious
price? - For purpose of determination of non-
injurious price, designated authority is always
required to take into consideration transfer price
(market value) of inputs and not their actual cost
of captive production - Designated authority failed
to provide detailed costing information to appellant
on basis of which it computed non-injurious price,
even though appellant was sole producer of
product under consideration, in country - This was
clearly illegal, and not contemplated by r. 7 - Held,
designated authority failed to appreciate that once
dumping and injury is established, existence of an
unfair trade practice by exporters is undisputed
and a restrictive view in computing an unduly low
non-injurious price would lead to granting a
premium to erring exporters at cost of domestic
industry, which is suffering injury - Designated
authority's determination of non-injurious price
was arbitrary and misguided - Appeal disposed of.