2015 (8) TMI 487 - HC - Customs

Demurrage Charges Grievance of petitioner was that goods were unnecessarily incurring demurrage charges Held that - Commissioner directed to assess provisional redeemable value of goods and said assessed amount will be deposited by petitioner with Commissioner Imported goods to be warehoused in private godown hired by petitioner Goods will be stored in godown subject to re-inventory by Customs at time of storing and will be subject to Special Officer s supervision and control Application disposed of Decided partly in favour of petitioner.

Summary

Issues: Provisional assessment of goods for customs clearance to avoid demurrage charges.

Analysis:

Issue 1: Provisional Assessment of Goods
The petitioner filed bills of entry with the Customs Department, but the goods were not assessed, leading to unnecessary demurrage charges. The court directed the appropriate Commissioner of Customs to assess a provisional redeemable value of the goods. This amount was to be deposited by the petitioner with the Commissioner, who would keep it in a separate interest-bearing term deposit account. The Customs would warehouse the imported goods in a private godown hired by the petitioner. The goods would be inventoried by the Customs under the supervision of a Special Officer appointed by the Court before leaving the Customs area. The Customs would conduct periodic inspections of the goods stored in the godown.

Issue 2: Appointment of Special Officer
Mr. Rabindra Nath Pal, a learned Advocate and member of the Bar Association, was appointed as a Special Officer at an initial remuneration of 1,000 GMs to be paid by the petitioner. The Special Officer would oversee the storage of the goods in the godown, ensuring compliance with the inventory requirements and Customs supervision.

Issue 3: Redemption of Goods
The goods could only be removed by the Customs upon the petitioner depositing the amount determined by the Commissioner as the redeemable value of the goods. The provisional redeemable value of the goods was to be indicated by the Commissioner by a specified date, and the transfer of goods to the warehouse would commence within three working days of the petitioner depositing the redeemable value.

Issue 4: Disposition of Writ Application
The court disposed of the writ application, clarifying that the order did not prevent the petitioner from taking further action for the release of the goods or pursuing other legal remedies. Certified copies of the order would be provided to the parties upon compliance with requisite formalities.

In conclusion, the judgment addressed the concerns of the petitioner regarding demurrage charges by facilitating the provisional assessment and warehousing of goods under the supervision of a Special Officer. The detailed directives aimed to streamline the customs clearance process while safeguarding the interests of both the petitioner and the Customs Department.