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2006 (1) TMI 659 - HC - Customs

Issues: Liability to pay additional cost recovery charges due to revision of pay of Customs personnel.

The judgment revolves around an Original Petition seeking to quash demands and declare non-liability for additional cost recovery charges due to Customs personnel pay revision. The Bond executed by the petitioner contains a clause stating the owner shall pay all charges for Customs staff, with liability limited to Rs. 20 lakhs. The main issue is whether the petitioner is obligated to pay amounts due to Customs staff for pay revision. The absence of a clause in the Bond obliging payment for pay revision led the single Judge to rule in favor of the petitioner, stating no obligation to cover pay revision costs based on the Vth Pay Commission report. The High Court concurred with the single Judge's decision, finding no reason to interfere, ultimately dismissing the Writ Appeal for lacking merit.

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