Court affirms that import policy changes cannot be applied retrospectively to goods dispatched before notification publication.
In a significant judgment, the Delhi High Court has ruled in favor of M/s Bright Metal Refiners, allowing the clearance of their imported goods despite a recent notification amending the import policy from "Free" to "Restricted" for certain goods. The court held that the notification, issued under the Foreign Trade Policy, 2023, could not be enforced retroactively on goods that were dispatched prior to its publication.
The petitioner, Bright Metal Refiners, had imported platinum alloy jewelry with precious stones from Bangkok, Thailand, which arrived at Indian ports before the notification was officially published in the e-Official Gazette. The notification, dated April 1, 2026, was digitally timestamped at 20:52:28 hours on April 2, 2026, by which time the petitioner's goods had already reached Indian shores.
The court, presided over by Justices Nitin Wasudeo Sambre and Ajay Digpaul, emphasized that the publication of a notification in the Official Gazette is a prerequisite for its enforceability, aligning with precedents set by the Supreme Court in similar cases. The judgment underlined that delegated legislation must be published in a manner that ensures its accessibility and notice to those affected, and cannot impose obligations retrospectively unless explicitly authorized by the parent statute.
The Directorate General of Foreign Trade (DGFT) had initially refused clearance of the goods based on the new restrictions, citing the notification's immediate effect clause. However, the court noted that the goods' arrival preceded the notification's publication, making the retrospective application impermissible.
The court dismissed objections regarding alternative remedies and territorial jurisdiction, stating that the issue at hand pertained to the non-applicability of the notification to pre-existing imports. The judgment reflects a robust interpretation of procedural fairness in administrative actions, ensuring that changes in policy do not retroactively affect stakeholders without due notice.
This ruling is expected to impact similar cases where importers have faced challenges due to abrupt policy changes, reinforcing the requirement for timely and transparent communication of regulatory measures.
Bottom line:-
Foreign Trade Policy - Notification amending import policy - Notification becomes enforceable only upon its publication in the Official Gazette, and the effective date and time of publication are crucial for determining its applicability to imported goods.
Statutory provision(s):
Foreign Trade (Development & Regulation) Act, 1992 Sections 3 and 5
