Kajaria Iron Castings Pvt. Ltd. v. United States

969 F. Supp. 90, 21 Ct. Int'l Trade 700, 21 C.I.T. 700, 19 I.T.R.D. (BNA) 1784, 1997 Ct. Intl. Trade LEXIS 85

Opinion

MEMORANDUM OPINION

DiCARLO, Senior Judge.

This ease concerns the 1991 administrative review of a countervailing duty order regarding iron metal castings from India. It was remanded: 1) to reconsider whether countervailing a tax deduction taken for countervailed Cash Compensatory Scheme (CCS) rebate payments double-counts the rebate subsidy, and 2) to recalculate the benefit received through § 80HHC of the Indian tax code after subtracting International Price Reimbursement Scheme (IPRS) payments for nonsubject merchandise from each company’s taxable income. Kajaria Iron Castings v. United States, 21 CIT -, Slip Op. 97-10, 956 F.Supp. 1023.(1997). Commerce’s response was discussed in detail in Crescent Foundry Co. Pvt. Ltd. v. United States, 21 CIT -, Slip Op. 97-82 (1997). On remand, Commerce concluded that when a company receives a grant such as a CCS or IPRS payment, and then receives a tax exemption for that grant, it has received two separate benefits which may both be countervailed without double-counting. For the reasons discussed in Crescent Foundry, this finding is sustained, and the calculation of the § 80HHC subsidy contained in Commerce’s original Final Determination is also sustained.

CONCLUSION

The portion of Kajaria Iron Castings ordering recalculation of the benefit received through § 80HHC is vacated. As Commerce’s original calculation of the § 80HHC subsidy is therefore sustained, it is not necessary for the court to sustain either of the recalculation approaches presented in the Final Results. The remainder of the Final Results is sustained.

JUDGMENT ORDER

Upon consideration of all papers and proceedings in this case submitted for decision, and after due deliberation, it is hereby

ORDERED that the explanation of Commerce’s policy of calculating separate benefits when exporters receive a countervailable rebate and a tax exemption for that rebate contained in its Final Results of Redetermination on Remand: Kajaria Iron Castings Pvt. Ltd. v. United States, Slip Op. 97-10, 956 F.Supp. 1023 (1997) is sustained. It is further

ORDERED that the portion of Kajaria Iron Castings v. United States, 21 CIT -, Slip Op. 97-10, 956 F.Supp. 1023 (1997) ordering recalculation of the benefit conferred by § 80HHC is vacated. It is further

ORDERED that the Department of Commerce’s Final Determination in Certain Iron Metal Castings from India, 60 Fed. Reg. 44,843 (Dep’t Comm.1995) (final admin, review) is sustained in its entirety.

SO ORDERED.