2019 (3) TMI 1640 - HC - Indian Laws

Discharge of Demurrage charges to CFS - HELD THAT - We are inclined to believe that the undertaking given on 16.03.2019 by the Commissioner of Customs would be sufficient to assuage the apprehension of the counsel for the Container Freight Station on the receipt of the demurrage charge, undertaken to be cleared by the Customs Authorities. The Court is informed that the goods are kept in 28 containers and those can be released in two weeks time. The closure of the proceedings is ordered with direction to the respondents to ensure release of the goods to the petitioners, within two weeks from today.

Summary

Issues:
Release of imported goods and demurrage liability.

Analysis:
The judgment delivered by the High Court of Kerala pertains to the release of imported goods and the demurrage liability associated with them. The court noted an Annexure-2 letter from the Customs Authorities, which indicated a division of demurrage liability between the Customs Authorities and the Importers. The court found this division to be in defiance of its previous order, which had been upheld by the Supreme Court. The Assistant Solicitor General assured the court that necessary steps would be taken to rectify the situation.

Regarding the demurrage charges, an undertaking dated 16.03.2019 was presented by the Customs Authorities, specifically by the Commissioner of Customs. This undertaking assured the payment of all legitimately due demurrage charges to the Container Freight Station for the imported goods. The court acknowledged the undertaking and the assurance given by the Customs Authorities to clear the demurrage liability associated with the imported goods in question.

The counsel representing the Container Freight Station expressed concerns about the quantum of the payable demurrage and requested clarity on the actual amount in the undertaking. The Assistant Solicitor General representing the respondent contemnor emphasized that the Customs Authorities had accepted responsibility for clearing the demurrage liability, ensuring the release of goods without any outstanding demurrage charges.

After considering the submissions from both parties, the court found the undertaking provided by the Commissioner of Customs to be satisfactory in addressing the concerns raised. The court ordered the release of the goods within two weeks, with the Customs Authorities clearing the demurrage liability as determined by the Container Freight Station authorities. The judgment concluded by reserving liberty for the petitioners to seek reopening of the Contempt of Court Cases if necessary due to any inaction by the respondents.