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The Supreme Court has stayed the Gujarat High Court order restoring anti-dumping duty on purified terephthalic acid (PTA) imported from Korea and Thailand.
Experts said that the decision of the Gujarat High Court to re-impose anti-dumping duty is a big relief for local manufacturers including Reliance Industries. The Gujarat High Court ordered the re-imposition of the duty after a petition filed by Reliance Industries and other local manufacturers to avoid losses due to cheap imports. But now it has been stayed. As the central government said, the notification to impose anti-dumping duty 2019 will expire on July 23 this year. Which cannot be restored retrospectively. It is worth noting that this duty was removed in the 2020-21 budget. Due to losses in business, an application was filed in the Gujarat High Court by Reliance Industries and other parties for re-imposition of duty. Of course, after the order of the High Court of the country, now a new twist has come in this whole matter. Reliance Industries has suffered a setback due to the order of the Supreme Court. Also, while hearing the matter, the Supreme Court bench questioned whether the High Court can monitor the economy?
The central government imposed anti-dumping duty on PTA imports for five years on July 24, 2019. But in February 2020, Union Finance Minister Nirmala Sitharaman announced the removal of the duty in the 2020-21 Budget, citing public interest. It was proposed to abolish the anti-dumping duty on PTA in the Union Budget in the larger public interest. The Finance Minister said that PTA is an important input for textile fibers and yarns. Its easy availability at competitive prices will open up immense possibilities in the textile sector. The government said that this will create employment.
Reliance Industries, Indian Oil Corporation Limited and other domestic producers of the material said that contrary to the government's view, the removal of anti-dumping duty has reduced their profit margins. Reliance Industries and others had filed a petition in the Gujarat High Court in this matter. The petition states that the decision to remove the duty without following due process is arbitrary and unjust. After hearing this petition, the Gujarat High Court directed to restore the 2019 notification and re-impose the anti-duty. Along with this, the Gujarat High Court in its direction also urged the central government to review its decision to continue or withdraw the duty. However, the government said that the 2019 notification will expire on July 23 this year. Which cannot be restored retrospectively.
The Supreme Court bench of Justices B.V. Nagarathana and N. Kotishwar Singh has issued an injunction on the order of the Gujarat High Court. Responses have also been sought from Reliance Industries and other parties. PTA is used to make items such as sportswear, swimsuits, jackets, sofas, curtains and car seat covers containing polyester.
A new twist in the whole matter
Parties including Reliance Industries filed a petition in the Gujarat High Court to impose anti-dumping duty? After imposing anti-dumping duty in 2019, the government announced the removal of anti-dumping duty in the 2020-21 budget in the public interest? Regarding this decision, the government said that easy availability of PTA at competitive prices will open up immense opportunities in the textile sector and provide adequate employment? However, domestic manufacturers including Reliance Industries approached the court due to a huge reduction in profits due to these steps of the government? The government said that the 2019 notification will expire on July 23 this year, which cannot be restored retrospectively.
