2023 (12) TMI 1181 - HC - Customs

Seeking immediate release of the goods without charging any demurrage or rent charges - goods were detained and re-valuation was done - petitioner deposited custom duty on the declared transaction value to take release the goods - HELD THAT - Since the issue in hand is not res judicata and the same has already been decided by the Division Bench of this Court in the case of M/s Continental Carbon India Ltd. 2015 (10) TMI 2131 - ALLAHABAD HIGH COURT where it was held that the respondent was not entitled to charge any demurrage charge from the goods so detained by the custom authorities. Learned counsel for the respondent heavily relied upon the recent judgement of Delhi High Court in the case of Bhavik S. Thakkar 2023 (2) TMI 681 - DELHI HIGH COURT . The case is of no help to the respondent as in the aforesaid case, the goods were seized and detained and at the time of confiscating the goods, time was granted to pay the dues but the same was not paid thereafter order was passed by the Settlement Commissioner imposing the penalty of Rs. 2 lakh and fine of Rs. 1 lakh in lieu of confiscation of imported goods. On the said premise, it was held that Settlement Commissioner is not the Court and the order was passed holding that the waiver cannot be granted to the parties therein. However in the case in hand, the appellate court specifically passed the order in favour of the petitioner holding that the disclosed value was correct - the respondent authority cannot charge the demurrage charges, therefore, no demurrage charges can be charged or demanded from the petitioner. The petitioner is granted relief to the extent that it would be open for the petitioner to clear off the goods without payment of demurrage charges subject to payment of other charges subsequent to the period of 17.9.2020 till the date of actual clearing off the goods in question - Petition disposed off.

Summary

Issues Involved:
1. Legality of demurrage or rent charges imposed by the Container Corporation of India Limited.
2. Authority of customs to detain goods and the subsequent waiver of demurrage charges.
3. Applicability of previous judicial decisions on the matter.

Summary:

1. Legality of Demurrage or Rent Charges:
The petitioner sought a writ directing the Container Corporation of India Limited to release goods without charging demurrage or rent charges and to prevent coercive actions like sale or e-auction of the goods. The petitioner, an importer of goods, had their goods re-assessed by customs authorities, resulting in an increased value and subsequent detention. Despite an appellate order in favor of the petitioner and a detention certificate waiving demurrage charges, the Container Corporation rejected the waiver request and demanded payment for release of the goods.

2. Authority of Customs to Detain Goods and Waiver of Demurrage Charges:
The court noted that the petitioner's declared value of goods was initially re-assessed by customs, leading to a penalty and confiscation order. However, the appellate authority later accepted the petitioner's declared value, and a detention certificate was issued to waive demurrage charges. The court emphasized that the customs authorities had detained the goods, which was beyond the petitioner's control, thus legally preventing the imposition of demurrage charges.

3. Applicability of Previous Judicial Decisions:
The petitioner relied on several judgments, including those from the Allahabad High Court, Gujarat High Court, and Madras High Court, which supported the non-imposition of demurrage charges on goods detained by customs authorities. The court cited the case of M/s Continental Carbon India Ltd., where it was held that the custodian cannot charge demurrage on goods detained by customs. Similarly, the court referred to the Gujarat High Court's decision in Green Gold Timbers Pvt. Ltd. and the Madras High Court's decision in Balaji Dekors, both of which reinforced the non-imposition of demurrage charges during customs detention.

Conclusion:
The court concluded that the respondent authority could not charge demurrage charges from the petitioner. The petitioner was granted relief to clear the goods without paying demurrage charges, subject to payment of other charges from 17.9.2020 until the actual clearance of the goods. The writ petition was disposed of accordingly.