Legal principle

A Notification issued under Section 3 of the FT (D&R) Act, 1992 acquires the force of law only upon its publication in the Official Gazette — in law it is born only upon such publication, and it is from that date alone that rights may be curtailed or obligations imposed.

Court decision

The Supreme Court allowed the appeals and quashed the High Court's judgment dated 21.12.2018. It held that a Notification issued under Section 3 of the FT (D&R) Act, 1992 acquires the force of law only upon its publication in the Official Gazette, and that 'date of this Notification' in para 2 must mean the date of such publication, i.e., 11.02.2016. The appellants, having opened irrevocable Letters of Credit prior to 11.02.2016 and complied with the procedural requirements of para 1.05(b) of the FTP, are entitled to the transitional protection; the MIP effective from 11.02.2016 cannot be applied to their imports under those Letters of Credit.

Facts

The appellants, private limited companies, import and trade in mild steel items such as hot rolled coils, cold rolled coils, hot rolled steel plates and pre-painted steel coils under Chapter 72 of ITC (HS), Schedule-I of the Foreign Trade Policy 2015-2020. Between 29.01.2016 and 04.02.2016 they entered firm sale contracts with exporters from China and South Korea and opened irrevocable Letters of Credit on 05.02.2016. On the same day, 05.02.2016, the Directorate General of Foreign Trade uploaded Notification No. 38/2015-2020 imposing a Minimum Import Price (MIP) on specified steel products, bearing the endorsement 'To be published in the Official Gazette of India'; the Notification was actually published in the Gazette on 11.02.2016. On 08.02.2016 the appellants applied for registration of their Letters of Credit under the transitional protection of para 1.05(b) of the FTP. The Delhi High Court, by common judgment dated 21.12.2018, dismissed their writ petitions, holding that although the Notification operated from 11.02.2016, uploading it on 05.02.2016 constituted sufficient notice, and that the Notification was not delegated legislation.

Key provisions

• Section 3, The Foreign Trade (Development and Regulation) Act, 1992 — Powers to make provisions relating to imports and exports.