2022 (3) TMI 371 - HC - Customs

Seeking to issue a detention certificate recommending waiver of demurrage and detention charges - Regulation 6(1)(l) of the Handing of Cargo in Customs Areas Regulations, 2009 - HELD THAT - The facts on record indicate that the petitioner had imported the goods on 19.06.2020 and had filed a bill of entry No.796361. While filing the bill of entry, the petitioner appears to have claimed the benefit of exemption under custom Notification No.20 of 2020-Cus, dated 09.04.2020. Whether the petitioner was indeed eligible for the above exemption or not, is now a matter of appeal before the Appellate Commissioner, pursuant to adjudication order passed by Joint Commissioner on 29.06.20221. The question further that remains to be answered whether the petitioner is entitled to a detention and demurrage certificate to produce the same to the respective service providers, namely, M/s.CWC (Nhavasheva) CFS, Tuticorin and the liner to waive demurrage and dentention charges for the period starting during the period when the goods were under seizure - Regulation 6 (1) (l) indicates that no rent or demurrage shall be charged on the seized or detained goods. Thus, during for the period when the imported goods were under seizure and/or no demurrage charges can be levied. The goods were seized on 26.06.2020. They were eventually, ordered to be released provisionally on 17.07.2020. Therefore, for the aforesaid date the petitioner cannot be mulcted to bear such charges. The goods were eventually cleared on 21.08.2020 after the petitioner complied with the requirements of letter, dated 17.07.2020 on 19.08.2020. This writ petition is partly allowed by directing the respondents to issue appropriate detention and demurrage certificate to the petitioner for the period between 26.06.2020 and 17.07.2020 inasmuch as during the aforesaid period, the petitioner could not have cleared the imported goods as the goods under seizure - appeal allowed in part.

Summary

Issues:
1. Claim for waiver of demurrage and detention charges under Regulation 6(1)(l) of the Handling of Cargo in Customs Areas Regulations, 2009.

Analysis:
The petitioner filed a writ petition seeking a Mandamus to direct the issuance of a detention certificate recommending waiver of demurrage and detention charges. The petitioner imported goods and claimed exemption under a customs notification. The imported goods were seized on suspicion of ineligibility for exemption. The provisional release was granted after the petitioner furnished a bank guarantee. The petitioner argued for exemption from demurrage and detention charges, while the respondents contended that the petitioner wrongly claimed exemption and delayed the release of goods. The respondents cited legal precedents supporting their position.

The court considered the arguments and relevant regulations. Regulation 6(1)(l) states that no rent or demurrage shall be charged on seized or detained goods. The court noted that during the seizure period, no demurrage charges should apply. The goods were provisionally released after a period of seizure, and the petitioner complied with the requirements for clearance. The court found merit in the petitioner's claim and directed the respondents to issue a detention and demurrage certificate for the period when the goods were under seizure, exempting the petitioner from charges during that time. The court partially allowed the writ petition, granting relief to the petitioner within a specified timeframe.

In conclusion, the judgment addressed the petitioner's claim for waiver of demurrage and detention charges under Regulation 6(1)(l) of the Handling of Cargo in Customs Areas Regulations, 2009. The court analyzed the circumstances of the case, considered relevant legal provisions, and directed the respondents to issue the necessary certificate to the petitioner for the period when the goods were under seizure, thereby exempting the petitioner from charges during that time.