Legal provisions involved: Section 3 of the Foreign Trade (Development and Regulation) Act, 1992 and Para 1.05(b) of the Foreign Trade Policy, 2015–2020.

Judgement by: Supreme Court of India

Judge/Bench: Justice P. S. Narasimha and Justice Alok Aradhe.

Facts

The appellants were companies importing mild steel, which was freely importable before February 2016. They entered into firm contracts with foreign suppliers and opened irrevocable letters of credit on 5 February 2016. On the same day, the government uploaded a notification online introducing a Minimum Import Price (MIP) for steel, but it was officially published in the Gazette only on 11 February 2016. The dispute was about which date should apply.

Key legal provisions

Section 3 of the Foreign Trade (Development and Regulation) Act, 1992 

Para 1.05(b) of the Foreign Trade Policy, 2015–2020.

Issues raised

Whether a government notification becomes legally effective from the date it is uploaded online or only from the date it is published in the Official Gazette?

Arguments of the case

The importers argued that the notification could apply only after Gazette publication and that their imports should get protection. The government argued that the date written on the notification was enough.

Judgement

The Supreme Court held that subordinate legislation becomes enforceable only after Gazette publication. Since the notification was published on 11 February 2016, the MIP could not apply to imports under letters of credit opened before that date. The appeals were allowed.

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