The Supreme Court has upheld a Gujarat High Court order that reinstated anti-dumping duty on imported purified terephthalic acid (PTA) from Korea and Thailand. PTA is an essential component in products containing polyester, such as sportswear, swimsuits, jackets, sofas, curtains, and car seat covers.
The reinstatement of the anti-dumping duty had been welcomed by domestic manufacturers who sought protection against cheaper imports. This decision followed petitions from local producers aiming to safeguard their interests.
On 24th July 2019, the Union Government imposed a five-year anti-dumping duty on PTA imports. However, in February 2020, Finance Minister Nirmala Sitharaman announced its removal from the 2020-21 budget, citing public interest. The Government highlighted that PTA is crucial for textile fibres and yarns and that its affordable availability would benefit the textile sector, a major employment generator.
Domestic producers like Reliance Industries and Indian Oil Corp. Ltd. faced potential profit margin reductions due to the duty’s removal. Consequently, they approached the Gujarat High Court, arguing that the duty was lifted without proper procedures. The Gujarat High Court then reinstated the 2019 notification and instructed the Union Government to conduct a sunset review to decide on the duty’s future.
The Supreme Court, however, has now stayed the Gujarat High Court’s order. A bench of Justices BV Nagarathna and N Kotiswar Singh sought responses from Reliance Industries and other parties involved.
