2024 (5) TMI 858 - HC - Customs

Wavier of demurrage/storage charges - Detention of the goods - Seeking release the goods for export - re-export of party quantity of Denatured Ethyl Alcohol - Penalty - HELD THAT - From record, it is clear that the CESTAT has allowed the appeal of the petitioner by setting aside the detention order/seizure order as well as the levy of penalty and fine in lieu of confiscation of the goods. The CESTAT has also passed an order with all consequential reliefs. Therefore, the detention of the goods in question was not valid and legal from the day of detention/seizure of the subject goods. The Rule Section 6 (1) (L) of the Regulation 2009 provides for issuance of waiver of certificate by the customs authorities subject to any other law for the time being prohibiting such charging of any rent or demurrage on the goods seized or detained or confiscated by the Superintendent of Customs or Appraiser of Inspector of Customs or Preventive officer or examining officer, as the case may be Therefore, when the goods were not required to be detained and the same has continued till today, no demurrage or other charges would be chargeable as per regulations 6 (1) (L) of the Regulations 2009. Thus, no cause of action will survive so far as Special Civil Application is concerned. Accordingly, both the petition stand disposed of.

Summary

Issues Involved:
The judgment involves issues related to the issuance of writs of mandamus, direction, or any other orders for demurrage and storage waiver, detention charges, and cross-stuffing of goods in tank containers. It also deals with the release of goods for re-export, penalty imposition, appeal processes, waiver of charges, and rights of the customs authorities and other parties involved.

Special Civil Application No. 13963 of 2023:
The petitioner sought writs for demurrage and storage waiver, cross-stuffing goods in tank containers, and quashing an order. The petitioner had filed various documents and appeals regarding the import and re-export of "Denatured Ethyl Alcohol," leading to a series of actions by the customs authorities and subsequent appeals and orders.

Customs Appeal and CESTAT Order:
The CESTAT allowed the petitioner's appeal, setting aside confiscation, redemption fine, and penalties imposed. The petitioner then applied for waiver of detention and ground rent charges to lift remaining goods for re-export, citing the CESTAT's order and a letter to the Custom Department for waiver.

Arguments and Submissions:
The petitioner's counsel argued for the waiver of detention charges and ground rent, stating compliance with regulations. The customs authorities contended that waiver could only be granted until a certain date based on the NOC issued. Respondent Nos. 3 and 5 highlighted their losses and legal actions taken due to the storage of goods in their warehouse.

Judgment and Directions:
The court noted the CESTAT's decision, finding the detention of goods unjustified. It directed the petitioner not to pay demurrage, detention, and ground rent charges from a specified date. The petitioner was instructed to lift the goods within five weeks, pay charges to respondent No. 3, and return containers to the concerned parties. The rights of respondent Nos. 3 and 5 in a pending civil suit were preserved, and the judgment disposed of the petitions accordingly.