2019 (4) TMI 803 - HC - Customs

Release of consignments - issuance of Detention Certificate for waiver of Demurrage and Container Detention Charges in terms of Regulation 6(1)(1) of Handling of Cargo in Customs Areas Regulations 2008 - Held that - The petitioner will remit the entire duty component of the consignments imported by him in case were such duty is leviable as per paragraph 15(iii) above along with a bank guarantee for the 10% of the invoice value. In cases where the duty impact is neutral, the petitioner shall furnish a bank guarantee for the 10% of the invoice value. Upon satisfaction of the aforesaid conditions, the consignment shall be released forthwith. Waiver of Demurrage and Container Detention Charges - Held that - In the light of Rule 6(l) of the Handling of Cargo in Customs Areas Regulations, 2009, which provides that the Customs Cargo Provider shall not, subject to any other law for the time being in force, charge any rent or demurrage on the goods seized or detained or confiscated by the Superintendent of Customs or Appraiser or Inspector of Customs or Preventive officer or examining officer, as the case may be, there shall be a waiver of demurrage charges. Petition disposed off.

Issues Involved:
1. Mandamus for the release of consignments.
2. Issuance of a "Detention Certificate" for waiver of demurrage and container detention charges.
3. Relevant date for reckoning the date of import: Bill of Lading vs. Bill of Entry.
4. Embargo on the import of consignments of dhalls.
5. Embargo on the import of consignments of peas.

Issue-wise Detailed Analysis:

1. Mandamus for the Release of Consignments:
The petitioner sought a mandamus for the release of consignments containing "Black Mapte" imported under seven Bills of Entry. The court referenced a similar case, M/s. Royal Impex V. Commissioner of Customs, where the same issue was adjudicated. The court concluded that the consignments in question were liable to be released conditionally upon the petitioner remitting the entire duty component where applicable and furnishing a bank guarantee for 10% of the invoice value.

2. Issuance of a "Detention Certificate" for Waiver of Demurrage and Container Detention Charges:
The petitioner requested a "Detention Certificate" for the waiver of demurrage and container detention charges under Regulation 6(1)(I) of the Handling of Cargo in Customs Areas Regulations 2009. The court held that in light of Rule 6(l) of the Handling of Cargo in Customs Areas Regulations, 2009, there shall be a waiver of demurrage charges for the detained consignments.

3. Relevant Date for Reckoning the Date of Import: Bill of Lading vs. Bill of Entry:
The court had to determine whether the relevant date for reckoning the date of import was the Bill of Lading or the Bill of Entry. Regulation 9.11 of the Foreign Trade Policy states that the relevant date would be the Bill of Lading. The court referenced the Supreme Court's judgment in Union of India V. Asian Food Industries, which supported the view that a vested or accrued right cannot be taken away by a policy change. Thus, the relevant date for reckoning the import of the consignments of peas is the date of Bill of Lading.

4. Embargo on the Import of Consignments of Dhalls:
The court noted that the import of dhalls was subject to restrictions under notifications issued by the Customs authorities. However, the operation of these notifications had been stayed by orders of the court. Therefore, there was no embargo on the import of the consignments of dhalls in the present cases.

5. Embargo on the Import of Consignments of Peas:
The import of peas was also subject to restrictions under various notifications. The court observed that the transactions of imports had crystallized before the relevant notifications were issued, and similar consignments had been allowed clearance. The court held that there was no embargo on the import of consignments of peas covered by Bills of Lading during the period 01.10.2018 to 31.12.2018, especially since the operation of the relevant notifications had been stayed.

Conclusion:
The court ordered the release of the consignments upon the petitioner fulfilling specified conditions related to duty payment and bank guarantees. The authorities were allowed to initiate proceedings regarding the transactions, and the petitioner was required to participate in such proceedings. The court also granted a waiver of demurrage charges in line with the relevant regulations. The writ petition was disposed of accordingly, and the connected miscellaneous petition was closed with no costs.

← Previous Next →