In a significant ruling for steel importers, the Bombay High Court has quashed the Ministry of Steel’s order denying the benefit of the Quality Test Certificate (QCO) exemption notification dated 8th April 2026 to an importer whose consignments were admittedly shipped on board on or before 30th June 2026. The Court held that the Steel Import Monitoring System (SIMS) registration window under the Notification dated 19th February 2026 is a separate and independent compliance requirement.
The Advance Registration Number (ARN) must be generated not earlier than 60 days and not later than 3 days before the expected date of arrival, and remains valid for 75 days. The respondents could not impose an additional condition requiring registration on or before 30th June 2026, as this was not provided by law or by the terms of either notification, added the Court.
Applying the principles in Southern Petrochemical Industries Co. Ltd. vs Electricity Inspector & ETIO & Ors. [(2007) 5 SCC 447] and Bombay Chemical (P) Ltd. vs. Vs. CCE [(1995) Supp (2) SCC 646], the Court reiterated that once goods fall within an exemption notification, it must be construed broadly and widely, and the right of exemption is an accrued and vested right that continues to operate till the notification is withdrawn.
Briefly, White Line International, a proprietorship concern of Ravi Doshi, is an importer of steel tubes and pipes falling under ITC HS Code 7304. The petitioner challenged the order dated 10th August 2026 passed by the Ministry of Steel (Respondent No. 2), declining to extend the benefit of two notifications to the petitioner. The Ministry of Steel, in exercise of powers under the Bureau of Indian Standards Act, 2016, had issued directions requiring a test certificate (QCO) under the Steel and Steel Products (Quality Control) Order 2020 for steel imports.
By Notification dated 19th February 2026, the Ministry of Steel made it mandatory for importers of steel products to obtain an Advance Registration Number (ARN) on the Steel Import Monitoring System (SIMS) Portal, not earlier than the 60th day and not later than the 3rd day before the expected arrival of the consignment, with the ARN remaining valid for 75 days. By Notification dated 8th April 2026, the Ministry exempted mandatory compliance with the QCO for steel imports covered by Bills of Lading having a “Shipped on Board” date on or before 30th June 2026.
The petitioner imported consignments from Thailand under Bills of Lading dated 27th June 2026 and from Ukraine under a Bill of Lading dated 26th May 2026, both admittedly shipped on board prior to the 30th of June 2026 cut-off. The expected date of arrival was 12th July 2026 for the Thailand consignment and 27th July 2026 for the Ukraine consignment. The petitioner applied for generation of the ARN on 3rd July 2026, which was within the time prescribed under the 19th of February 2026 notification, but the ARN could not be generated. The petitioner then lodged a complaint on the Central Public Grievance Redress and Monitoring System (CPGRAMS) on 9th July 2026, followed by an appeal on 31st July 2026, which culminated in the impugned order dated 10th August 2026.
The Division Bench comprising Justice M. S. Karnik and Justice Sandesh D. Patil observed that the goods imported by the petitioner were entitled to the exemption provided they satisfied the test therein, and that the goods fell under the category stipulated under the exemption notification, which could not be construed narrowly.
The Court noted that the 19th February 2026 notification only provided that the ARN application should be made not earlier than the 60th day and not later than the 3rd day before the expected date of arrival of the import consignment, with the ARN remaining valid for 75 days, and there was no justification for the respondents to impose the additional condition that the petitioner had to register the consignment on or before 30th June 2026.
The Court held that insisting that the registration should be within the transitional period was not a requirement provided by law or the notifications, and that once the petitioner fell within the terms of the notifications, the same would have to be given full effect. The Court further held that since the Bills of Lading had shipped the goods on board on or before 30th June 2026, there was nothing wrong in the petitioner applying for the ARN on 3rd July 2026, as the goods were to arrive on 12th July 2026 and 26th July 2026 respectively, and the petitioner had applied within the time frame stipulated by the 19th February 2026 notification.
