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PAMIDIGHANTAM SRI NARASIMHA, ALOK ARADHE
Viraj Impex Pvt. Ltd. – Appellant
Versus
Union Of India – Respondent
Certainly. Based on the provided legal document, here are the key points summarized:
Delegated legislation, such as notifications issued under statutory powers, only acquires the force of law upon proper publication in the Official Gazette. Without such publication, the legislation remains incomplete and unenforceable (!) (!) (!) .
The requirement of publication in the Gazette serves a dual constitutional purpose: ensuring notice to those affected and maintaining accountability and solemnity in the exercise of delegated legislative powers. This requirement is not a mere formality but a fundamental condition for enforceability (!) (!) .
The effective commencement of a subordinate legislative order is determined by whether it has been published in a manner reasonably calculated to bring it to the notice of all affected persons. Publication in the Official Gazette is the recognized mode for such promulgation (!) .
When a parent statute prescribes a specific mode of promulgation, that mode must be strictly followed. Any deviation, such as an alternative publication method, cannot confer legal validity on the legislation before proper publication in the designated manner (!) .
In the context of the case, the notification imposing a Minimum Import Price (MIP) under the relevant Act was only effective from the date of its publication in the Official Gazette, which was 11.02.2016. The phrase ‘date of this Notification’ in the notification must be interpreted as the date of publication, not the date it was uploaded or announced informally (!) .
Importantly, the transitional provisions that benefit importers, such as those contained in para 1.05(b) of the Foreign Trade Policy, are applicable only if the importers have taken procedural steps before the notification’s effective date. Specifically, importers who had entered into irrevocable Letters of Credit before the notification’s publication date are entitled to such transitional benefits (!) (!) .
The courts emphasize that any fiscal or trade restrictions or burdens imposed through unpublished notifications would undermine the rule of law and commercial certainty. Therefore, such notifications must be published to be effective (!) (!) .
As a result, the court set aside the earlier judgment and confirmed that the notification’s legal effect begins only upon its publication in the Gazette. Consequently, importers who acted prior to this publication date are entitled to the transitional protections provided by the law (!) .
These points collectively underscore the importance of proper publication procedures for delegated legislation to be valid and enforceable, and they clarify the interpretation of specific terms within the notification concerning the effective date of legal obligations.
JUDGMENT :
ALOK ARADHE, J.
Leave granted.
2. These appeals arise from Common Order and Judgment dated 21.12.2018 passed by the High Court of Delhi, in a batch of writ petitions, whereby the writ petitions filed by the appellants were dismissed. By the aforesaid order and judgment, the High Court dismissed the challenge laid by the appellants to a Notification issued by the Central Government imposing a Minimum Import Price on certain steel products. The controversy lies in narrow compass and turns primarily on the interpretation of the expression ‘date of this Notification’ occurring in para 2 of Notification No.38/2015-2020 (Notification), issued under the Foreign Trade (Development and Regulation) Act, 1992 (Act).
THE FACTUAL BACKGROUND
3. The appellants are private limited companies incorporated under the Companies Act, 1956 and are engaged in the import and trading of mild steel items such as Hot Rolled Coils, Cold Rolled Coils, Hot Rolled Steel Plates and Pre Painted Steel Coils etc. Admittedly, prior to February, 2016, the said items were freely importable and fell under Chapter -72 of the Indian Trade Clarification (Harmonized System), 2012 (hereinafter, referred to as ‘ITC-HS’)
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