Notification effective from date of its publication in official gazette

We had imported plastic processing machines and deposited them in a bonded warehouse before the imposition of anti-dumping duty (ADD) on such goods through notification no.21/2025-Cus (ADD) dated 26th June 2025. Now, we want to clear the goods in DTA but the Customs say that we have to pay the ADD. Our argument is that ADD was imposed after importation of the goods. Who is correct?

 

I think you are correct because ADD on your item did not exist when the taxable event i.e. importation of goods occurred. However, in the case of LSML Pvt. Ltd [(2022) 1, Centax 18 (Tri.Mad.)], the Tribunal, on almost identical facts, held that ADD is payable on clearance from the bonded warehouse because all the provisions of Customs Act and the Rules made thereunder are squarely applicable to ADD and as such in case of warehoused goods duty applicable as on the date of clearance from warehouse is to be recovered in terms of Section 15 of the Customs Act, 1962. The said Section 15(1)(b) says that (relevant extracts), ‘the rate of duty applicable to any imported goods, shall be the rate in force, in the case of goods cleared from a warehouse under Section 68, on the date on which a bill of entry for home consumption is presented.’ I think the judgment is incorrect because Section 15 deals only with the rate of duty and not with the taxable event. 

The DGFT notification no. 59/2024-25 dated 10th February 2025 prohibiting export of human hair valued at less than US$ 65/Kg. was published in the Official Gazette on the 25th June 2025. What is the effective date of the notification? 

In my opinion, the effective date of the notification is the 25th June 2025, although the notification says that it will come into force with immediate effect, because Section 5 of the Foreign Trade (Development and Regulation) Act, 1992 says that ‘the Central Government may, from time to time, formulate and announce, by notification in the Official Gazette, the export and import policy and may also, in like manner, amend that policy’. So, publication in the Official Gazette is an essential requirement for the notification to come into force. Dealing with a similar provision at Section 25(4) of the Customs Act, 1962, the Supreme Court, in the case of G.S. Chatha Rice Mills [2020 (374) ELT 289 (SC)], held that a notification is effective from the date and time when it is published in the Official Gazette. This decision was followed in the case of Faquir Chand Vinod Kumar & Co. [2023 (8) Centax 199 (Tri.-Bom) and Patanjali Foods Ltd. [2024 (20) Centax 457 (Bom.). The Gujarat High Court, in the case of Adani Wilmar [(2023)2 Centax 325 (Gju.) had clearly held that a notification is said to be published only after declaration form and documents are signed digitally and uploaded for e-publishing and the date of e-publication of the notification on electronic Gazette is its date of publication. 

   

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