2019 (8) TMI 887 - HC - Customs

Direction to exclusive use of weighbridges installed by the petitioners - installation of weighbridges by the Customs Cargo Service Providers at their facilities preferably near entry/exit gates and that, all containers must be weighed - C.B.E.C. issued the instructions/directions dated August 18, 2011 - sometime in 2016, the petitioner observed that, Direct Port Delivery (DPD) and Direct Port Entry (DPE) containers passing through Kolkata Dock were not being weighed at the weighbridges of the petitioner - HELD THAT - Essentially, the petitioners have sought the relief that, the respondents should not permit any DPD and DPE containers to pass through Kolkata dock of the Kolkata Port without the same being weighed at the weighbridges installed by the petitioners. The circulars that the petitioners have relied upon require weighment of the containers. The circulars do not require that, the containers must be weighed at the weigh bridges installed by the petitioners. The containers, if weighed elsewhere, is acceptable by Custom. Customs authorities have not taken stand that, the containers must be weighed at the weighbridges of the petitioners - There is no privity of contract between the petitioners and the Kolkata Port Trust authorities. The petitioners are occupying land, taken on lease by HSCL from the Kolkata Port Trust authorities. There is nothing on record to suggest that, Kolkata Port Trust authorities had permitted HSCL to put the petitioners into possession of any part or portion of the lease area. There is no obligation on the part of Kolkata Port Trust authorities to ensure that, all DPD and DPE containers passing through Kolkata dock of Kolkata Port Trust must be weighed at the weighbridges installed by the petitioners. There is no merits in the petition - petition dismissed.

Summary

Issues:
Petitioner sought direction for weighing containers as per circulars. Petitioner claimed financial losses due to unweighed containers. Dispute over obligation to weigh containers at petitioner's weighbridges. Privity of contract between petitioner and Port Trust authorities questioned.

Analysis:
The petitioner requested direction for respondents to adhere to circulars mandating weighment of containers. The petitioner, operating weighbridges at Kolkata Port, highlighted financial losses from unweighed Direct Port Delivery (DPD) and Direct Port Entry (DPE) containers. The issue arose when Kolkata Port Trust authorities allowed unweighed containers to pass through despite circulars requiring weighment. Customs authorities emphasized the necessity of weighing all containers, but the Port Trust did not comply. The petitioner argued that all loaded containers must be weighed at their weighbridges, as endorsed weights from external agencies should not be accepted.

The petitioner's senior advocate referenced Safety of Life at Sea (SOLAS) guidelines, emphasizing the obligation of customs and port trust authorities to follow SOLAS guidelines. However, the Kolkata Port Trust authorities disputed the petitioner's standing to file the writ petition, citing lack of privity of contract and asserting that the petitioner had no right beyond possession of the property. The Port Trust argued that the lease agreement with Hindustan Steel Work Construction Limited (HSCL) did not grant permission for the petitioner's occupation of the land.

The judgment concluded that the circulars did not specify weighment at the petitioner's weighbridges, and there was no contractual relationship between the petitioner and the Port Trust authorities. The court found no obligation on the Port Trust to ensure weighment at the petitioner's weighbridges. As a result, the writ petition was dismissed, stating that the petitioner was not entitled to the relief sought due to the absence of merit in the case.

Overall, the judgment centered on the dispute regarding the obligation to weigh containers at the petitioner's weighbridges, the petitioner's contractual standing with the Port Trust authorities, and the interpretation of circulars mandating container weighment. The court's decision hinged on the lack of contractual relationship and the absence of a specific requirement to weigh containers at the petitioner's weighbridges as per the circulars.