Legal principle

A restriction notification under the foreign trade regime comes into force only on its publication (digital signing) in the Official Gazette and cannot operate retrospectively to goods that had already arrived at the Indian port of import before that time, which must be cleared under the legal position prevailing prior to the notification.

Court decision

Allowing the petition in terms of prayer clause (a), the Division Bench of Justices Nitin Wasudeo Sambre and Ajay Digpaul agreed with the view taken by the Gujarat High Court in Enero Jewels and held that the goods were imported prior to the Notification coming into force and were liable to be cleared in accordance with the conditions and legal position prevailing before its issuance; the Court directed that the petitioner's goods be processed for release immediately.

Facts

M/s Bright Metal Refiners, a New Delhi firm engaged in importing and trading precious metals, sought to import Platinum Alloy Jewellery studded with ruby under Tariff Entry 71131925 of the First Schedule to the Customs Tariff Act, 1975, shipped from Bangkok on Airway Bills dated 30th and 31st March 2026. Notification No. 02/2026-27 dated 01.04.2026, published in the e-Official Gazette on 02.04.2026 with a digital timestamp of 20:52:28 hrs, changed the import policy for goods under CTH 7113 from 'Free' to 'Restricted', excluded the transitional arrangements of Para 1.05(b) of the Foreign Trade Policy 2023, and applied with immediate effect irrespective of prior contract, irrevocable letter of credit, advance payment or shipment status. Customs authorities refused clearance without a valid import authorization/license, and the Commissioner of Customs (APSC), Mumbai, by letter dated 16.04.2026 advised the petitioner to pursue other remedies, while a clarification sought from CBIC on 15.04.2026 was never issued. The last consignment arrived at the Indian port on 02.04.2026 at 01:39 AM, about 20 hours before the Notification's gazette publication, prompting the petitioner to file a writ under Article 226 seeking directions for clearance.

Key provisions

• Section 8A, Customs Tariff Act, 1975 — Emergency power of Central Government to increase import duties