Import policy takes effect only on Gazette notification; penalty must rest on objective merits, not personal remarks.

Import restrictions and export-import policy changes under the Foreign Trade (Development and Regulation) Act, 1990 take effect only when issued by notification in the Official Gazette; a delayed publication cannot give the policy retrospective operation. On that basis, the import of glass bricks was treated as unauthorised and confiscability was upheld. Penalty, however, had to be fixed on objective merits, and not on personal remarks about the importer's representative. In the absence of material showing that the margin of profit supported the amount imposed, the penalty was deleted.

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Issues: (i) Whether the importation of glass bricks was unauthorised on the basis of the export-import policy and notification position prevailing on the date of import; (ii) Whether the penalty imposed on the importer was sustainable.

Issue (i): Whether the importation of glass bricks was unauthorised on the basis of the export-import policy and notification position prevailing on the date of import.

Analysis: The policy relied upon had been announced by notification under Section 5 of the Foreign Trade (Development and Regulation) Act, 1990. That provision authorises the Central Government to issue the export-import policy by notification in the Official Gazette and to amend it in the same manner. As the policy could take effect only upon such notification, a delayed publication could not make it operative from an earlier date.

Conclusion: The import was unauthorised and the finding on confiscability was upheld.

Issue (ii): Whether the penalty imposed on the importer was sustainable.

Analysis: The reduction or imposition of penalty had to rest on the merits of the case. Personal remarks about the conduct of the importer's representative were not a proper basis for fixing the penalty. In the absence of material showing that the margin of profit justified the amount imposed, the penalty could not be sustained.

Conclusion: The penalty on the importer was set aside.

Final Conclusion: The finding of unauthorised importation was maintained, but the penalty was deleted, resulting in only partial relief to the importer.

Ratio Decidendi: A trade policy or import restriction notified under the governing statute becomes effective only upon notification in the Official Gazette, and penalty must be determined on objective merits rather than extraneous considerations.

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