Supreme Court: Steel Import Notification Valid Only Upon Gazette Publication

Summary: The Supreme Court decided that a government announcement affecting steel imports became official only when it was published in the Official Gazette on February 11, 2016. This decision overturned an earlier ruling by a lower court and was in favor of Viraj Impex Pvt. Ltd.

Background of the Case

Viraj Impex Pvt. Ltd., a company that imports steel, challenged a government announcement that set a Minimum Import Price (MIP) on certain steel products. The announcement was posted on the Directorate General of Foreign Trade's website on February 5, 2016, but was officially published in the Official Gazette on February 11, 2016.

Key Dates and Events

• January 29 to February 4, 2016: Viraj Impex made deals with exporters in China and South Korea.
• February 5, 2016: The company arranged payment methods called Letters of Credit, and the announcement was posted online.
• February 11, 2016: The announcement was published in the Official Gazette.

High Court's Initial Ruling

The Delhi High Court decided that the announcement was effective from February 5, 2016, the day it was posted online. This meant that Viraj Impex's imports had to follow the new MIP rules, even though their Letters of Credit were arranged on the same day.

Supreme Court's Decision

The case was judged by Justice Alok Aradhe and Justice Pamidighantam Sri Narasimha. They concluded that:

• Publication Date Matters: The announcement only became official on February 11, 2016, when it was published in the Official Gazette.
• Protection Under FTP: Viraj Impex was protected under a specific part of the Foreign Trade Policy, allowing their imports without the new MIP since their Letters of Credit were set up before the announcement was officially published.

"An announcement cannot be partly effective. By law, it only starts when published in the Official Gazette."

The Supreme Court overturned the High Court's decision, confirming that the announcement's legal effect began only when it was officially published. This ruling highlights the importance of following official publication rules for government announcements. Viraj Impex Pvt. Ltd. won the case, meaning their imports are not subject to the MIP due to the timing of their payment arrangements. The court's focus on the publication date as the start date sets a clear rule for future cases involving government announcements.