2020 (11) TMI 593 - HC - Customs

Levy of Light Dues Charges and Port Charges - applicant has made a grievance that respondent No.1 is levying light dues charges for the entire one months period though the ship was delivered to the applicant on 11.11.2020 - HELD THAT - All the contentions of the parties regarding the legality and justifiability of the quantum of charges claimed by the Port Trust can be considered while determining the entitlement of the parties to the amount to be deposited with the office of Sheriff of Mumbai. All the contentions are, thus, kept open for consideration. The applicant - M/s. NKD Maritime Limited shall deposit a sum of Rs. ₹ 1,58,59,737/- with the office of Sheriff of Mumbai by tomorrow, 19.11.2020 - matter be listed on 2nd December 2020.

Summary

Issues:
Interim application for direction on levy of "Light Dues Charges and Port Charges" in conformity with governing provisions.

Analysis:
The applicant, successful bidder in an auction sale of a cruise ship, sought direction for the respondents to levy charges in accordance with governing provisions. The ship was sold for scrapping, and delivery was made on 11.11.2020. The applicant raised concerns about alleged excessive demands by respondent No.1 (Customs) for "light dues charges" and by respondent No.2 (Bombay Port Trust) for "Port dues" at a higher rate than permissible, hindering the sailing of the ship. Respondent No.2 claimed anchorage charges of &8377; 1,23,35,351/- for seven days from 11.11.2020 to 17.11.2020, leading to a total of &8377; 1,58,59,737/- to be deposited by the applicant with the Sheriff of Mumbai by 19.11.2020. The applicant also agreed to deposit additional charges if the ship did not sail by the specified date.

The learned counsels debated the legitimacy of the Port charges claimed by respondent No.2, with the applicant contending that charges were higher than warranted, while respondent No.2 argued for uniform charges on all anchored ships. The Court kept all contentions open for further consideration while determining the amount to be deposited. An order was passed for the applicant to deposit the specified amount with the Sheriff by the given date, with provisions for additional deposits if the ship did not sail as planned. Upon deposit, respondent No.2 was to issue a "permission to sail out" certificate, and respondent No.1 to issue a Port Clearance Certificate and NOC for sailing. Communication of the deposit to relevant authorities was mandated, and all rights and contentions regarding charges were kept open for future review.

The respondents were directed to file an affidavit in reply within two weeks, and the matter was scheduled for listing on 2nd December 2020. The order was to be digitally signed for immediate action upon receipt of a digitally signed copy.