2023 (9) TMI 24 - HC - Customs

Seeking release of imported goods without levy of Detention, Demurrage and Container Storage Charges - import of Fuel Oil in Flexi Bags - Regulation 6 (1) (l) of the Handling of Cargo in Customs Areas Regulations, 2009 - HELD THAT - Liberty granted to the petitioner to approach the 3rd and the 4th respondents for release of the goods. However, it is made clear that neither the issue decided on the quantum that is due to the 3rd and 4th respondents nor issue is resolved that may arise for consideration, which is intended to, while disposing of the batch of matters pending. The writ petition disposed off.

Summary

Issues involved:
The judgment involves issues related to the release of imported goods without levy of charges, interpretation of regulations governing handling of cargo in customs areas, liability of customs authorities for demurrages, and the impact of previous judgments on the current case.

Issue 1: Regulation 6 (1) (l) of Handling of Cargo in Customs Areas Regulations, 2009
The Division Bench considered whether Regulation 6 (1) (l) is binding on all Customs Cargo Service Providers (CCSP) and if they can act contrary to the certificate issued under it. The Court also examined if the certificate issued constitutes an order for handling of cargo and customs areas. Furthermore, the distinction in the regulation for waiver of demurrages based on justifiable detention was deliberated.

Issue 2: Challenge to Detention Certificate by Customs Cargo Service Providers
The Court questioned if, in the absence of a challenge to the Detention Certificate by CCSP, they can challenge the legality in writ petitions filed by importers for goods release. Additionally, the relevance of Sea Cargo Transhipment Regulations of 2018 and the precedential value of Supreme Court judgments in similar cases were discussed.

Issue 3: Liability of Customs Authorities for Demurrages
The judgment also addressed whether Customs Authorities can be held liable for demurrages and under what circumstances. In a related matter, an interim order for the release of goods was passed subject to certain conditions, including the execution of bank guarantees and personal bonds.

Judgment Summary:
The Writ Petition sought a mandamus to release imported goods without certain charges based on a waiver certificate. Despite the certificate, the 3rd and 4th respondents refused to waive charges, leading to the writ petition. The matter was tagged with other appeals raising similar issues. The Division Bench framed multiple issues for consideration, including the binding nature of regulations, challenges to certificates, and liability of Customs Authorities for demurrages.

In a connected matter, an interim order for goods release was passed with specific conditions. During the hearing, discrepancies in the amount due to the respondents were raised, with the petitioner expressing intent to settle the amount. The Court granted liberty to the petitioner to negotiate with the respondents for goods release, without deciding on the quantum due. The writ petition was disposed of with observations on pending matters.