In current era electronic Communication is a fundamental method of exchanging information. Secure communication is a major concern by which people can share information with varying degrees of certainty that third parties cannot capture the information that is transmitted over network. With the introduction of internet and distributed system made the information security issue more challenging and complex. So information security is a very important aspect now a day. Cryptography plays [5] a crucial role in providing security to the data that is transmitted over the internet. The disciplines of cryptography and network security leading to the development of more number of practical applications to enforce security in network. In this paper we have proposed a cipher which uses basic encryption techniques of substitution and transposition [1], [4] along with application of logic gates to encrypt the data.