2019 (3) TMI 1343 - HC - Customs

Release of consignments - Peas/Pulses imported by the petitioner's Proprietor Firm - issuance of Detention Certificate for waiver of Demurrage and Container Detention Charges in terms of Regulation 6(1)(1) of Handling of Cargo in Customs Areas Regulations 2008 - Held that - The petitioner will remit the entire duty component of the consignments imported by him in case were such duty is leviable as per paragraph 15(iii) above along with a bank guarantee for the 10% of the invoice value. In cases where the duty impact is neutral, the petitioner shall furnish a bank guarantee for the 10% of the invoice value. Upon satisfaction of the aforesaid conditions, the consignment shall be released forthwith. Waiver of Demurrage and Container Detention Charges - Held that - In the light of Rule 6(l) of the Handling of Cargo in Customs Areas Regulations, 2009, which provides that the Customs Cargo Provider shall not, subject to any other law for the time being in force, charge any rent or demurrage on the goods seized or detained or confiscated by the Superintendent of Customs or Appraiser or Inspector of Customs or Preventive officer or examining officer, as the case may be, there shall be a waiver of demurrage charges. Petition disposed off.

Issues Involved:
1. Release of consignments of "Peas/Pulses".
2. Issuance of a "Detention Certificate" for waiver of Demurrage and Container Detention Charges.
3. Relevant date for reckoning the date of imports.
4. Embargo on import of dhalls and peas.
5. Waiver of demurrage charges.

Issue-wise Detailed Analysis:

1. Release of consignments of "Peas/Pulses":
The petitioner sought a Mandamus for the release of consignments containing "Peas/Pulses" imported under specific Bills of Lading. The court referenced a prior order (W.P.No.4403 of 2019) where similar issues were addressed, concluding that the consignments in question are liable to be released conditionally upon the petitioner remitting the entire duty component or providing a bank guarantee for 10% of the invoice value.

2. Issuance of a "Detention Certificate" for waiver of Demurrage and Container Detention Charges:
The petitioner requested a "Detention Certificate" under Regulation 6(1)(1) of the Handling of Cargo in Customs Areas Regulations 2008. The court noted that the identical issue was previously considered, and the petitioners were granted relief based on the interim stay of the relevant Notifications. The court reiterated that the consignments should be released conditionally, and demurrage charges should be waived under Rule 6(l) of the Handling of Cargo in Customs Areas Regulations, 2009.

3. Relevant date for reckoning the date of imports:
The court addressed whether the relevant date for reckoning the date of imports would be the date of Bill of Lading or Bill of Entry. Regulation 9.11 of the Foreign Trade Policy specifies that the date of import is the date of Bill of Lading. This was supported by the Supreme Court's judgment in Union of India V. Asian Food Industries, which held that a vested or accrued right cannot be taken away by a policy change.

4. Embargo on import of dhalls and peas:
The court examined whether there was any embargo on the import of dhalls and peas. The import of both products was subject to restrictions by various notifications. However, the court noted that the stay of operation of these notifications was in force at the time of the imports. The court concluded that there was no embargo on the import of the consignments covered by Bills of Lading during the specified periods, and the stay of the notifications warranted the release of the consignments.

5. Waiver of demurrage charges:
The petitioner sought a waiver of demurrage charges incurred due to the detained consignments. The court referenced Rule 6(l) of the Handling of Cargo in Customs Areas Regulations, 2009, which states that no rent or demurrage should be charged on goods seized or detained by Customs officers. Consequently, the court ordered a waiver of demurrage charges for the detained consignments.

Conclusion:
The court ordered the release of the consignments upon the petitioner fulfilling the specified conditions regarding duty payment and bank guarantees. The authorities were permitted to initiate proceedings concerning the transactions, and the petitioner was required to comply with any subsequent orders. The court also granted a waiver of demurrage charges as per the relevant regulations. The writ petition was disposed of with no costs.

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