2022 (5) TMI 662 - HC - Customs

Seeking provisional release of detained of goods - Chinese Knotted Woollen Carpets - recovery of dues towards the container detention charges - HELD THAT - The writ applicant invited our attention to one order passed by this Court in the case of GREEN GOLD TIMBERS PVT. LTD. THROUGH ITS DIRECTOR AKHILESH MANGLIK VERSUS COMMISSIONER OF CUSTOMS 2022 (1) TMI 816 - GUJARAT HIGH COURT wherein this Court took the view that the customs cargo service provider as defined in the Regulation No.2(1)(b) of the Regulations is not entitled in law to charge any rent or demurrage on the goods seized or detained or confiscated by the Customs or any other Authority. However, according to Mr. Verma, the order of this Court in the case of Green Gold Timbers Pvt. Ltd. is with respect to ground rent charges and not helpful to the writ applicant. This writ application is admitted and an interim order is passed reserving the liberty in favour of the respondent No.5 to raise all the legal contentions available to him including his contention as regards his contractual lien - Rule returnable on 23.08.2022.

Summary

Issues:
1. Release of consignment of Chinese Knotted Woollen Carpets detained by customs.
2. Demand for demurrage charges by the shipping line.
3. Legal contentions regarding contractual lien and demurrage charges.

Issue 1: Release of consignment of Chinese Knotted Woollen Carpets detained by customs:
The petitioner sought the release of a consignment of carpets detained by customs. Despite a previous court order directing immediate release, the consignment remained undelivered due to the respondent demanding demurrage charges exceeding the value of the goods. The court noted the delay and issued notice to the respondents, scheduling a hearing to address the matter.

Issue 2: Demand for demurrage charges by the shipping line:
The respondent shipping line argued for the payment of container detention charges before allowing the petitioner to retrieve the goods. Citing a Supreme Court judgment, the respondent claimed a contractual lien over the goods until the charges were settled. The court acknowledged the legal position but reserved the right for the respondent to present all legal contentions, including the contractual lien, at a later date.

Issue 3: Legal contentions regarding contractual lien and demurrage charges:
The petitioner relied on a previous court order stating that customs cargo service providers are not entitled to charge rent or demurrage on seized goods. However, the respondent differentiated the case, asserting that the previous order did not apply to the current situation. The court admitted the writ application, reserving the respondent's right to raise legal contentions, including the contractual lien. An interim order was issued for the release of goods pending the final judgment, with a hearing scheduled to address all pertinent issues comprehensively.