Customs Cannot Deny Clearance For Goods Imported Before DGFT Notification: Delhi High Court

The Delhi High Court on 4 June held that import restrictions introduced through a DGFT notification cannot apply to goods imported before the notification acquired legal force upon publication in the e-Official Gazette.

A Division Bench of Justices Nitin Wasudeo Sambre and Ajay Digpaul allowed a writ petition filed by Bright Metal Refiners and directed customs authorities to process and release consignments of platinum alloy jewellery imported from Thailand. The judges held:

“The requirement of publication in the Gazette, is therefore not an empty formality. It is an act by which an executive decision is transformed into law.”

Bright Metal Refiners imported platinum alloy jewellery studded with rubies under a tariff entry classified as “Free”. Thereafter, Notification No. 02/2026-27 changed the import policy for goods under CTH 7113 from “Free” to “Restricted” and stated that the restriction would apply irrespective of prior contracts, shipment status, or transitional arrangements.

Customs authorities refused clearance and insisted that the consignments required an import licence because they had not cleared customs before the notification took effect.

Before the Court, the petitioner argued that the notification acquired legal force only when authorities published it in the e-Official Gazette on 2 April 2026 at 20:52:28 hours. The petitioner contended that all consignments had already arrived in India before that time and therefore the restriction could not apply.

The petitioner relied on the Supreme Court decisions in Viraj Impex Pvt. Ltd. and G.S. Chatha Rice Mills and submitted that delegated legislation becomes enforceable only after valid publication and cannot operate retrospectively without express statutory authority.

The Court accepted this argument and reiterated that publication in the Gazette serves as a mandatory condition for enforceability of delegated legislation. It also agreed with the Gujarat High Court ruling in Enero Jewels Pvt. Ltd. and recorded that the last consignment reached India at 1:39 AM on 2 April 2026, nearly twenty hours before publication of the notification.

The Bench held that the importer brought the goods into India before the notification came into force. It observed:

“the goods in question were imported prior to the notification coming into force and are liable to be cleared in accordance with the conditions and legal position that prevailed before the issuance of the said notification.”

Accordingly, the High Court directed customs authorities to immediately process and release the consignments under the pre-existing import policy.