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TMI Blog2009 (11) TMI 436X X X X Extracts X X X X X X X X Extracts X X X X ..... of custom that port trust to waive demurrage charges. Number of decisions of Supreme Court and High Court that Custom alone is liable to pay demurrage charges for goods detained in port trust premises as instance of customs. Customs directed to pay said charges and goods be released. - 38588 of 2003 - - - Dated:- 24-11-2009 - N. Kirubakaran, J. REPRESENTED BY: S/Shri Rishi Bhatia, Desrick Sam for S.S. Radhakrishnan, for the Petitioner. S/Shri M. Jagadeesan and S. Arunku mar, for the Respondent. [Order]. - The petitioner has approached this court for a direction to the second and third respondents to pay demurrage charges. 2. The case of the petitioner is that it imported two consignments of diodes on 29-6-2000 and 11-1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for an order to direct the second respondent to issue detention certificate. Pursuant to the order in the above writ petition, the second respondent issued detention certificate dated 10-11-2003 for considering waiver of transit dues (demurrage) for the period of detention of goods. 5. The petitioner submitted that the goods imported through bill of entry No. 294360 dated 27-9-2000 were allowed clearance by M/s. C.C.T.L, Chennai after full waiver of demurrage charges based on the detention certificate issued by the second respondent. However in respect of other bill of entry, the first respondent refused to waive the demurrage charges and sent a letter dated 2-12- 2003 to the petitioner and demanded a sum of Rs. 2,03,201/- being the demu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Based on that, learned Central Government Standing counsel submitted that the Port Trust is bound to consider the waiver application filed by the petitioner on the basis of detention certificate issued by the custom authority. Mr. M. Jagadeesan, learned counsel for the first respondent submitted that the first respondent is only a custodian and charges have to be paid for the space occupied by the goods of the petitioner. The counsel further submitted that the Madras Port Trust is governed by Tariff Authority for Major Ports and is also governed by scales of rates. The charges regarding detention of goods has been stated in para 2 of the counter affidavit filed by the customs. "GOODS DETAINED BY CUSTOMS: The period during which the go ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st is liable to charge, charges for detention of goods there was no application filed to waive the charges based upon the detention certificate. He further submitted that the first respondent is a statutory body and it cannot be carried away by the act of any third person except to follow the scales of rate fixed by the Tariff Authority for Major Forts. He further submitted that under Section 170 of the Indian Contract Act, the first respondent is entitled to have rights to retain a lien over the goods until dues are paid. 10. Mr. Desrick Sam, learned counsel appearing for Mr. S.S. Radhakrishnan, learned counsel for petitioner on record submitted that the issue was already settled by the Hon'ble Supreme Court by three judges bench in Ship ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... age charges. Similarly His lordship Altamas Kabir the Judge of the Hon'ble High Court, Culcutta, in Donald Macarthy (P) Ltd. v. Union of India reported in 1997 (89) E.L.T 53 (Cal.) held that when the goods were detained by the customs authority and not due to any negligence on the part of party, the demurrage charges have to be paid by Custom authorities. Similarly a Division Bench of the Hon'ble High Court Andhra pradesh at Hyderabad in Sujana Steels Ltd. v. Commissioner of Customs Central Excise (Appeals), Hyderabad reported in 2002 (141) E.L.T 343 (A.P.) held that when the importer is unable to clear the goods from the customs area due to the fault on the Custom authority, Central Warehousing authority could not be directed to releas ..... X X X X Extracts X X X X X X X X Extracts X X X X
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