2010 (12) TMI 350 - HC - Customs

Recovery of demurrage charges - The petitioner seeking recovery of demurrage charges for the containers which remained in the premises of the Kandla Port since the petitioner could not clear the goods on auction of inspection being carried out by the Customs Authorities - Containers remained idle in the port premises for considerably long time and beyond statutory period permitted for clearance - It was open for the Kandla Port Trust to recover demurrage charges - Fact that the petitioner could not clear the goods on account of detention by the Customs Authorities would not change the situation - If at all, the petitioner was of the opinion that such detention was unauthorized, illegal or frivolous it can proceeded against the Customs Authorities - Kandla Port Trust cannot be asked to waive their charges for delayed clearance of the goods - Hence, petition is disposed of.

Summary

Issues:
Challenge to demand notices for demurrage charges by Kandla Port Trust due to delayed clearance of containers by Customs Authorities.

Analysis:

1. Delayed Clearance and Demurrage Charges: The petitioner challenged the demand notices issued by Kandla Port Trust seeking recovery of demurrage charges for containers that were not cleared within the statutory period. The containers arrived in January 1997 but were cleared in July 1997, leading to the demand for demurrage charges by the port authorities.

2. Customs Authorities' Detention: The petitioner argued that the Customs Authorities detained the goods for inspection, but upon release, no irregularities were found. The Customs Authorities even recommended waiving the demurrage charges, citing a circular issued by Kandla Port Trust that had granted such waivers in the past.

3. Port Trust's Position: The Kandla Port Trust opposed the petition, stating that their circular at the time of the incident did not provide for waiving demurrage charges in such situations. They relied on Apex Court decisions to support their stance that demurrage charges cannot be waived, emphasizing that the containers had remained idle beyond the permitted clearance period.

4. Legal Ruling: The court noted that the containers had indeed exceeded the allowed clearance time and upheld the right of Kandla Port Trust to recover demurrage charges. The court emphasized that the delay caused by Customs Authorities did not absolve the petitioner from paying the charges, suggesting that any grievances against the detention should be addressed separately.

5. Direction for Calculation: The court directed Kandla Port Trust to provide the petitioner with calculations for the recovery of charges within two weeks. The petitioner was granted the opportunity to dispute the calculations if necessary, ensuring a transparent process in resolving the financial aspect of the case.

6. Conclusion: The petition was disposed of with the directive for the supply of calculations, maintaining the legal position that delayed clearance due to Customs Authorities' actions does not exempt the petitioner from demurrage charges as per the applicable laws and court precedents.