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Legal
NALCO, HLL's plea against anti-dumping duty quashed

NEW DELHI: In a setback to aluminium giant NALCO and FMCG major Hindustan Lever Ltd, a tax tribunal has quashed their plea challenging the Government's decision to impose anti-dumping duty on imports of caustic soda.

The two companies had moved the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) after the ministry of finance imposed anti-dumping duty in January 2003 on imports of sodium hydroxide (also known as caustic soda) from Chinese Taipei, Indonesia and European Union (excluding France).

NALCO and HLL had contended that the investigation by the Directorate General of Anti-Dumping Duties (which works under the Commerce Ministry) was based on misleading data provided by local companies under the banner of Alkali Manufacturer Association of India. The two firms had also said that there was no link between imports and injury to domestic companies.

However, in the judgment, CESTAT President Justice, Mr R K Abhichandani said that imports have been at a price lower than non-injurious price for domestic industry and increase in imports led to a decline in share of local manufacturers.

"Due to dumping, the landed value of caustic soda in the Indian market was so low compared to the cost of production and selling price of the domestic industry that local manufacturers were not in a position to reduce prices to match the price of importe d goods," the judgment said.

NALCO had floated global tenders in 2002 for import of caustic soda, widely used in the aluminium industry. HLL through its detergents division had agreed to supply it. However, the domestic producers resisted it and Delhi-based AMAI sought a probe by th e DGAD on cheap imports of the commodity.

In its report, the DGAD supported the claims of local manufacturers and recommended imposing anti-dumping duty. - PTI

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