1 FEBRUARY 1957 AND THE BALANCE TO THE PERIOD THEREAFTER .
I - THE SUBMISSIONS RELATING TO THE PERIOD PRIOR TO 1 FEBRUARY 1957
1 . MISTAKE RELATING TO THE PRINCIPLE OF LIABILITY TO CONTRIBUTE TO THE EQUALIZATION SCHEME
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THE APPLICANT SUBMITS THAT, INDEPENDENTLY OF ANY QUESTION OF EXEMPTION, THE FERROUS SCRAP WHICH IT BOUGHT PRIOR TO 1 FEBRUARY 1957 WAS NOT SUBJECT TO THE EQUALIZATION LEVY, AS THE OPERATIONS CARRIED OUT AT ITS STEEL WORKS AT THAT TIME WERE LIMITED TO PREPARATORY WORK AND TRIALS .
ACCORDING TO THE WORDING OF THE BASIC DECISIONS RELATING TO THE FINANCIAL SCHEME IN QUESTION ' THE UNDERTAKINGS REFERRED TO IN ARTICLE 80 OF THE TREATY WHICH CONSUME FERROUS SCRAP ' ARE LIABLE TO PAY THE CONTRIBUTIONS PRESCRIBED BY THE SAID DECISIONS . UNDER THE SAID ARTICLE OF THE ECSC TREATY ' FOR THE PURPOSES OF THIS TREATY " UNDERTAKING " MEANS ANY UNDERTAKING ENGAGED IN PRODUCTION IN THE COAL OR THE STEEL INDUSTRY '. THE SYSTEMATIC BUYING OF RAW MATERIALS MARKS THE COMMENCEMENT OF SUCH PRODUCTION IF IT ENABLED THE BUYER TO START ACTUAL PRODUCTION EVEN IF SUCH PRODUCTION WAS ON A TRIAL BASIS .
UNDER ARTICLE 53 OF THE TREATY THE HIGH AUTHORITY MAY MAKE ANY FINANCIAL ARRANGEMENTS ' WHICH IT RECOGNIZES TO BE NECESSARY FOR THE PERFORMANCE OF THE TASKS SET OUT IN ARTICLE 3 ' INCLUDING THAT OF ' ENSURING AN ORDERLY SUPPLY TO THE COMMON MARKET ' LAID DOWN IN SUBPARAGRAPH ( A ) OF THE SAID ARTICLE 31 . THE TREATY DOES NOT THEREFORE ONLY LOOK ON ' UNDERTAKINGS ' FROM THE POINT OF VIEW OF PRODUCTION BUT ALSO FROM THAT OF THE PROCUREMENT OF MATERIALS WHICH OF NECESSITY PRECEDE PRODUCTION, AT ANY RATE IN THE CASE OF THE PROCUREMENT OF MATERIALS SUCH AS FERROUS SCRAP WHICH FALL WITHIN THE JURISDICTION OF THE HIGH AUTHORITY .
IT IS NOT DISPUTED THAT THE APPLICANT BOUGHT FERROUS SCRAP FROM APRIL 1956 AND THAT IT COMMENCED ACTUAL PRODUCTION OF STEEL ON 1 FEBRUARY 1957 AT THE LATEST . IT IS THEREFORE LIABLE TO PAY CONTRIBUTIONS FROM APRIL 1956 . FINALLY THE APPLICANT IS WRONG TO QUOTE ARTICLE 6 OF DECISION NO 2/57, PUBLISHED IN THE OFFICIAL JOURNAL OF 28 JANUARY 1957, TO PROVE THAT THE PERIOD PRIOR TO 1 FEBRUARY 1957 WAS NOT A ' PERIOD OF NORMAL OPERATION '. THIS PROVISION IN FACT ONLY REFERS TO THE ' SUPPLEMENTARY RATES ' TO BE CHARGED ON ' THE EXCESS CONSUMPTION ' OF FERROUS SCRAP, A QUESTION WHICH DOES NOT ARISE IN THE PRESENT CASE .
THIS SUBMISSION MUST THEREFORE BE REJECTED WITHOUT THERE BEING ANY NEED TO ASCERTAIN WHETHER AND TO WHAT EXTENT THE OPERATIONS CARRIED OUT BY THE APPLICANT DURING THE PERIOD IN QUESTION WENT BEYOND THE PREPARATORY STAGE .
2 . THE EXEMPTION OF THE APPLICANT FOR THE PERIOD PRIOR TO 1 FEBRUARY 1957 AND ITS EVENTUAL WITHDRAWAL
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THE CONTESTED DECISION, AFTER STATING IN ITS PREAMBLE THAT THE DECISION OF THE BOARD OF THE CPFI OF