9911796707
|
Home
Issues:
1. Obligation of Customs authorities to reimburse storage and demurrage charges. 2. Whether the functions of the Customs Department being quasi-judicial in nature exempt them from liability under Art. 14 of the Constitution. 3. Interpretation and applicability of Supreme Court judgments in similar cases. 4. Entitlement of Central Warehousing Corporation to claim storage and demurrage charges. 5. Review of the judgment regarding the liability of the Customs Department to pay the charges. Analysis: 1. The High Court considered the argument by the Standing Counsel for the Government of India that Customs authorities were not obligated to reimburse storage and demurrage charges. However, the Court rejected this contention, emphasizing that Customs authorities are subject to the principles of reasonableness and non-arbitrariness under Art. 14 of the Constitution. The Court found the argument untenable, asserting that Customs actions are not beyond scrutiny under Art. 14. 2. The Standing Counsel further contended that due to the quasi-judicial nature of Customs Department functions, Art. 14 postulates should not apply even in cases of unlawful detention of goods. Citing Supreme Court decisions, the Counsel argued against the liability of Customs in such situations. The Court dismissed this argument, maintaining that Art. 14 principles of non-arbitrariness and fairness should guide Customs actions, refuting the exemption based on the quasi-judicial nature of their functions. 3. The Court analyzed the relevance of specific Supreme Court judgments in similar contexts, highlighting the differences in the cases considered. It differentiated the facts of the present case from the judgments cited by the Standing Counsel, emphasizing the applicability of Art. 14 principles in assessing the actions of the Customs Department regarding storage and demurrage charges. 4. Addressing the entitlement of the Central Warehousing Corporation to claim storage and demurrage charges, the Court acknowledged their right to demand such payments. However, in a situation where the Customs Department's wrongful act led to the importer incurring these charges, the Court applied Art. 14 principles to direct the Customs Department to pay the charges to the Warehousing Corporation, considering the fairness and reasonableness of such a decision. 5. Ultimately, the Court dismissed the review petition, finding no grounds to alter the judgment. The Court extended the time granted to the Customs Department to pay the storage and demurrage charges to the concerned party by an additional 15 days, reaffirming its decision based on the application of Art. 14 principles in the case.
|
