2015 (6) TMI 859 - SC - Customs

Claim of waiver of demurrage charges - Policy of the Airport Authority of India exists under which waiver is permissible under certain circumstances - Held that - From the reading of the judgment in the case of Modern Rubber Industries 2002 (12) TMI 92 - HIGH COURT OF JUDICATURE AT BOMBAY that the said case pertains to the dispute between the Customs authorities and the importer. Therefore, it has no application as far as instant case is concerned, inasmuch as in the present case there is a policy of the Airport Authority of India itself under which waiver is permissible under certain circumstances. As contended by the appellant, the dispute is as to whether the goods would be covered by clause 10.2.3(h) of the said policy, or it is clause 10.1.10(b) of the said policy, which would be attracted. Therefore, the High Court was completely in error in dismissing the writ petition in limine by referring to the case of Modern Rubber Industries. - Matter remanded back to High court to decide the writ petition on mertis.

Summary

Issues:
Classification of imported goods, waiver of demurrage charges, interpretation of waiver policy clauses, judicial review of administrative decisions.

Classification of Imported Goods:
The appellant imported parts of diesel engines under Bills of Entry, and the classification was disputed by the Revenue. The Assistant Commissioner of Customs ruled against the appellant, but this decision was later reversed by the Commissioner of Customs (Appeals) and further upheld by the Custom, Excise and Service Tax Appellate Tribunal. The Revenue accepted this decision, and the Bills of Entry were finally assessed accordingly.

Waiver of Demurrage Charges:
After succeeding in the Customs appeal, the appellant applied for a waiver of demurrage charges paid to the Airport Authority of India (AAI). The Commissioner of Customs issued Detention Certificates directing the appellant to claim a refund of demurrage charges from the AAI. However, the AAI rejected the waiver claim citing clause 10.1.10(b) of the waiver policy, stating that demurrage charges could not be waived due to delays caused by Customs for clearance purposes.

Interpretation of Waiver Policy Clauses:
The appellant argued that clause 10.2.3(h) of the AAI's policy applied, which stated that if the importer succeeds in an appeal, no demurrage charges would be payable. The AAI referred to clause 10.1.10(b) in rejecting the waiver claim. The dispute centered on which policy clause was applicable to the situation.

Judicial Review of Administrative Decisions:
The appellant approached the High Court through a writ petition under Article 226 of the Constitution after the AAI rejected the waiver claim. The High Court dismissed the petition based on a previous judgment, which the Supreme Court found to be irrelevant to the current case. The Supreme Court set aside the High Court's judgment and remitted the case back to the High Court for a decision on the writ petition's merits.

In conclusion, the Supreme Court's judgment focused on the correct interpretation of the AAI's waiver policy clauses and the judicial review of administrative decisions regarding the waiver of demurrage charges. The decision highlighted the importance of applying the relevant policy clauses to specific situations and ensuring a thorough examination of the legal grounds for waiver claims.