2018 (1) TMI 31 - HC - Customs

Waiver of detention charges - the waiver of demurrage charges has been ordered by the Department from 23-5-2017 to 7-7-2017 and the same have not been obeyed - Held that - the petitioner approached this Court by way of filing this writ petition on 10-7-2017 and subsequently the matter was adjourned at the instance of the respondents to get proper instructions from their clients. Therefore till the cargo is released the demurrage charges have to be waived. Thus there will be a direction to the respondents 5 and 6 to waive the demurrage charges/detention charges of the said container from 23-5-2017 till the date it is released - petition disposed off.

Summary

Issues:
Petition seeking direction to release imported goods without payment of demurrage and container detention charges under Handling of Cargo in Customs Areas Regulations.

Analysis:
The petitioner sought a direction to release goods imported under a specific Bill of Entry without payment of demurrage and container detention charges. The Preventive Officer of Chennai Customs endorsed in a letter that the goods should be released and detention charges of the containers waived. However, the fifth and sixth respondents did not release the cargo or waive the charges, leading to the writ petition.

To investigate the reason for not waiving the charges despite the endorsement, the Court directed the Standing Counsel for the respondent-Department to provide written instructions. The delay in the case's proceedings was due to this purpose.

The Revenue's Senior Counsel produced an email communication referring to a letter addressed to the sixth respondent by the Superintendent of Customs, which was akin to a show cause notice questioning the demand for demurrage charges despite a previous directive to waive them. The Department had already passed an order to waive the charges, even though the sixth respondent claimed they did not receive a proper order.

Despite the Department's order to waive demurrage charges from a specific period, the charges were not waived, prompting the petitioner to file the writ petition. The Court directed respondents 5 and 6 to waive the demurrage and detention charges of the container from the specified date until the cargo's release, with a three-day deadline for releasing the container after receiving the Court's order.

Consequently, the writ petition was disposed of without costs, with a clear direction for the release of the container and the waiver of demurrage and detention charges as per the Court's order.