Law Updates

The Director General of Foreign Trade, exercising powers under paragraph 1.03 of the Foreign Trade Policy-2023 (as amended), has implemented three new standard Input Output Norms (SIONs).  The new SIONs, A-3687, A-3688, and A-3689, are introduced under the 'Chemical and Allied Products' category, Product Code 'A'.

The update aims to simplify trade practices and facilitate smooth operations in the chemical and related products sector. The revised standards are now in effect to increase efficiency and support the movement of goods under these product categories.

The Ministry of Textiles has issued an order to amend the Cotton Bales (Quality Control) Order, 2023. According to this amendment, the new rule will come into effect on August 27, 2026. This change follows the powers granted under the Bureau of Indian Standards (BIS) Act, 2016, and after consulting the Bureau of Indian Standards (BIS). The amendment aims to strengthen quality control in cotton bales. All stakeholders are advised to comply with the updated guidelines to meet BIS certification standards. This amendment is crucial for improving quality and ensuring industry compliance with BIS norms.

The Ministry of Environment, Forest and Climate Change issued a notification on July 3, 2025, announcing the Environment (Protection) Third Amendment Rules, 2025. These rules amend the Environment (Protection) Rules, 1986, to include a new provision in Schedule I. Under serial number 5A, column 4, a new proviso allows for exemptions from the installation of cooling towers in thermal power plants. The Ministry in consultation with the Central Electricity Authority and the Central Pollution Control Board can grant this exemption. The exemption will be provided only after the Ministry records its reasons in writing. The amendment aims to ensure flexibility for thermal power plants while still considering environmental protection measures. The new rules come into force on July 5, 2025, following their publication in the Official Gazette. This amendment addresses environmental concerns related to thermal power plants and provides a pathway for potential exemptions.

The Central Government has issued amendments to a previous Ministry of Power notification under clause (a) of section 14 of the Energy Conservation Act, 2001. These amendments, made in consultation with the Bureau of Energy Efficiency, revise certain conditions related to designated consumers and energy consumption principles. The alterations aim to improve compliance and reporting procedures for energy efficiency in specific sectors. Updated responsibilities may include revised energy savings targets, compulsory audits, and performance monitoring requirements. The amendments are now in effect as per their publication in the Gazette of India.

On June 16, 2025, the Directorate General of Trade Remedies (DGTR), Ministry of Commerce and Industry, issued a corrigendum to clarify the countervailing duty (CVD) on imports of effect pearlescent pigments and mica pearlescent pigments. This follows the DGTR’s final findings, published on March 28, 2025. The corrigendum outlines how CVD should be calculated for different grades and uses of pearlescent pigments, ensuring proper duty collection in line with India's trade regulations.

For natural-grade effect pearlescent or mica pearlescent pigments used in industrial applications, the CVD will be the difference between the duty amount and the applicable anti-dumping duty under Notification No. 13/2023-Cus (ADD) dated November 22, 2023. In cases where these pigments are used for cosmetic applications, the CVD will be equal to the full amount since no anti-dumping duty applies. However, for automotive applications of natural-grade pigments, no countervailing duty will be charged, providing relief for manufacturers in the automotive sector.

For synthetic-grade effect pearlescent pigments, the CVD will be the same as the amount specified, as no anti-dumping duty is applicable. This clarification is crucial for businesses involved in the import of pearlescent pigments, as it ensures a clear understanding of the duty structure for various types and applications. The corrigendum also highlights that the customs classification of these products is only indicative and does not define their exact scope under the current duty rules.

As per the Government of India, Ministry of Finance (Department of Revenue) notification dated 24th April 2025, several important amendments and updates have been made to the GST Appellate Tribunal rules. The following textual corrections and clarifications are made:

(i) In Chapter XIV, Rule 115(1), the phrase “Notwithstanding anything contained in the foregoing Chapters I to XIV, except as may be otherwise provided by order by the President,” shall now read as “Notwithstanding anything contained in the foregoing chapter I to Chapter XIV, except as may be otherwise provided by order by the President, the provisions of this rule shall apply.”
(ii) In the schedule of fees for Interlocutory Applications, the reference to Rule “118(2)” shall be read as “119(2)”.
(iii) In GSTAT FORM-05, the citation “[See rule 6 and 81]” shall now read as “[See rule 81]”.
(iv) In Rule 2(b), the phrase “section sub-section” shall be corrected to “sub-section”.
(v) In Rule 103(5), the requirement that “Every order or judgement or notice shall bear the seal of the Appellate Tribunal” is modified to exclude orders passed online and digitally signed.