2022 (10) TMI 1193 - HC - Customs

Recovery of Port demurrage and detention charges dues - vessel is stuck with the cargo on board and vessel is on demurrage - HELD THAT - Respondent Nos. 2 and 3 states the customs have permitted warehousing of Pigeon Peas and if petitioner applies customs will consider issuing provisional release order for the Pigeon Peas. As regards Soya bean customs information is that those are genetically modified and its import banned in India - petitioner states that petitioner may be permitted to atleast discharge the entire cargo on board the vessel so that the vessel is not held up and petitioner is not liable to pay further demurrage to the vessel owner. Stand over to 21st October 2022. Stand over to 21st October 2022.

Summary

Issues:
1. Dispute over the import of Pigeon Peas and Soya bean cargo.
2. Customs authority's instructions preventing further discharge of cargo.
3. Port demurrage and detention charges.
4. Proposal to move cargo to a customs bonded warehouse.
5. Non-payment of port charges.
6. Possibility of provisional release order for Pigeon Peas.
7. Ban on genetically modified Soya bean import.
8. Request to discharge entire cargo to avoid demurrage.

Analysis:
1. The petitioner imported Pigeon Peas and Soya bean cargo, with part of the cargo already discharged in Mumbai Port. However, the customs authority has halted further discharge of both cargos, leading to a dispute.

2. The petitioner's counsel, Mr. Nankani, highlighted that the vessel is stuck with cargo on board, incurring demurrage, and suggested moving the discharged cargo to a customs bonded warehouse if customs have no objections.

3. The issue of unpaid port charges was raised by Mr. Bhalwal for the port, with Mr. Nankani agreeing to settle the dues before moving the cargo.

4. Mr. Mishra, representing the respondents, mentioned that customs permitted warehousing of Pigeon Peas and might consider a provisional release order. However, the import of genetically modified Soya bean is banned in India, posing a challenge.

5. To prevent further demurrage charges, Mr. Nankani proposed allowing the discharge of the entire cargo on board the vessel, awaiting instructions from Mr. Mishra and Mr. Bhalwal.

6. The matter was adjourned to 21st October 2022 for further proceedings, awaiting responses from the involved parties regarding the proposed solutions and pending issues.