CESTAT Quashes Countervailing Duty of 2.47% on Continuous Cast Copper Wire

The Customs, Excises, Service Taxes Appellate Tribunal (CESTAT), New Delhi Bench quashed the countervailing duty (CVD) of 2.47% on Continuous Cast Copper Wire.

The appellant is a manufacturer of copper rods, wire rods, drawn copper wires, and strips. Metrod Copper Products Sdn Bhd and Metrod (OFHC) Sdn Bhd are wholly owned subsidiaries of the appellant and are inter alia engaged in marketing and selling copper wires manufactured by the appellant. Savli Copper Products Pvt Ltd. is an Indian related party of the appellant and has imported copper wires manufactured by the appellant into India.

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

The notification imposes CVD on similar goods manufactured/exported from Indonesia, Vietnam, Thailand, and other manufactures in Malaysia, but no appeal has been filed by any other manufacturer or exporter or importer of the subject goods.

The appellant contended that drawn “Copper Wire” manufactured by the appellant is not akin to “Continuous Cast Copper Wire Rods”, for which Hindalco is 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 the appellant i.e. Copper Wire of less than 6mm manufactured by using the drawing process and falling under CTH 74081990.

The coram headed by President Justice Dilip Gupta said that it is not possible to sustain the CVD levied for “other program” and if this program is excluded from the subsidy margin determination, the appellant would fall below the de minimis level. The imposition of 2.47% CVD on the appellant at serial no. 8 of the notification dated January 8, 2020 is, therefore, liable to be set aside.