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1991 (2) TMI 132 - HC - Customs

Issues involved: Release of goods without payment of demurrage charges, liability for demurrage charges and ground rent charges, obligation of custodian to release goods, validity of detention certificate, liability for demurrage charges between importer and Customs Department.

Summary:
The High Court of Delhi allowed the petition directing respondents to release goods without demurrage charges and issue a Detention Certificate from the date of filing Bill of Entries. Respondent No. 5 sought a declaration that demurrage and ground rent charges are to be borne by the petitioner. The petitioner argued that after discharge of a show cause notice, they are not liable for such charges as the custodian is obligated to release goods u/s 45(2) of the Customs Act. Referring to past judgments, it was emphasized that custodians must comply with court orders and issue detention certificates as required.

In another case, it was established that detention certificates are issued based on court decisions, and if goods are detained pending adjudication, a detention certificate must be provided to the importer. The burden of demurrage payment falls on the importer if the Department justifies detention; otherwise, the Department is liable for demurrage charges. The court ruled that the Customs Department is liable for demurrage and ground rent charges in this case, as the Container Corporation of India is the custodian u/s 45 of the Customs Act.

The court directed the Container Corporation of India to release goods upon submission of a revalidated delivery order and payment of demurrage and ground rent charges before a specific date. Demurrage charges prior to the date of filing Bill of Entries are to be borne by the importer, while charges after that date are the responsibility of the Customs Department.

 

 

 

 

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