TMI Blog2022 (4) TMI 950X X X X Extracts X X X X X X X X Extracts X X X X ..... the custodian and, thereafter, pursue, with the Customs authorities, for obtaining reimbursement of the amount. Similar issue arose in the case of MATE (INDIA) PVT. LTD. VERSUS COMMR. OF CUS., INLAND CONTAINER DEPOT [ 2020 (2) TMI 1374 - DELHI HIGH COURT] , wherein similar facts were involved and it was thus concluded by this Court that the Custom Authorities cannot direct waiver of demurrage charges which can only be done by the custodian under AAI Act. Merely because the Custom Authority expends a reasonable time in dispensation of their sovereign functions of search, seizure and investigation, cannot lead to transference of liability to pay demurrage to the Customs Authority. Thus, it is evident that the Customs Authorities cannot direct waiver of demurrage which can only be done by the Custodian. Moreover, in the present case the decision was given on 6th May, 2019 vide which the fine and penalty were levied upon the petitioner. Admittedly, despite the aforesaid decision, the petitioner has not paid the penalty on the pretext that he would pay the same simultaneous to the release of goods. The appellant is thus, not entitled to waiver of demurrage charges - petiti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... said consignments from the date of holding of these Bills of Entry i.e. 22.04.2019 and 24.04.2019 till the finalization of the investigation as informed by the competent authority of Customs. 3. In the mean while, since the petitioner was under pressure to honour the commitments towards buyers of the goods, he requested respondent No.2 to decide the cases without issuing any Show Cause Notice. The investigation was finalized vide Order dated 08th July, 2019. The petitioner has stated that once the investigations had been completed and an order dated 08th July, 2019 was passed by respondent No.2, the petitioner had a right for release of goods on payment of differential duty, redemption fine and penalty. However, on account of its financial hardship, it represented that the amount to respondent No.2 shall be paid immediately before release of goods. The petitioner approached respondent No.1 for release of goods but it refused to do so unless the demurrage charges were paid till date. The petitioner approached respondent No.2 vide letter dated 11th July, 2019 about illegal demand of full charges for demurrage, but to no avail. Aggrieved the petitioner has filed the present petit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stituted under Airport Economic Regulatory Authority of India Act, 2009. The interpretation of Regulation 6(1) as proposed by the petitioner nullifies all other rules and regulations which is erroneous and fallacious. Furthermore, no Detention Certificate had been issued by the Customs Authority in favour of the petitioner and its reliance on letter dated 16th May, 2019 issued by Assistant Commissioner is of no benefit as it was a letter issued by the Customs during the investigations and not after the conclusion of enquiry. The case of the petitioner stands distinguished in view of Clause 10.1.10 of Customs Regulations, 2003. The petitioner is not entitled to any waiver of demurrage charges. 5. The respondent No.2-Commission of Customs (SIIB) in its counter affidavit has submitted that the adjudication order dated 08th July, 2019 has already been made wherein option has been given to the petitioner to get the goods released on payment of Government dues. The respondent No.1 vide letter dated 08th May, 2019 was requested not to charge any demurrages as the subject consignment was held by DRI/SIIB for investigations. It is further submitted that as per Regulations, 2009 it was co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ods. It further provided that till the charges are paid, AAI shall have a lien on cargo of goods . 9. The short question for consideration is whether the Custom Authorities can direct waiver of demurrages otherwise recoverable by AAI in terms of AAI Regulation, 2003. This aspect was considered in detail by this Court in Global Impex and Ors. Vs. Manager, Celebi Import Shed and Ors., W.P. (C) 7577/2019 decided on 20th December, 2019 , where after analyzing a catena of judgments the principles which emerged from aforesaid decisions were narrated as under : (i) The custodian has a lien over the imported goods, consigned to its custody. This lien may be statutory, as provided under the IAA Act, all the Major Port Trusts Acts, or contractual. It may also be relatable to Sections 170 and 171 of the Indian Contract Act, 1872. (ii) This lien entitles the custodian to retain hold of the goods, consigned to its custody, till all its dues, including ground rent and demurrage, are paid. (iii) The Customs authorities have no power, or the jurisdiction, to issue any instruction, to the custodian, requiring the custodian to waive, in whole or in part, the demurrage chargeab ..... X X X X Extracts X X X X X X X X Extracts X X X X
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