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TMI Blog2009 (2) TMI 21X X X X Extracts X X X X X X X X Extracts X X X X ..... six consignments from Australia between October, 1995 to January, 1996 on which Petitioner No.1 paid the Custom Duty. Later, the Petitioners were informed by their Clearing Agents that clearance of consignments had been stopped by the Respondents who had referred the case to Special Investigation Bureau for investigation as a precautionary measure. The goods were eventually granted clearance on 30.1.1996 by which time the Petitioner incurred a total sum of Rupees 7,14,043/- on account of Detention and Demurrage charges. It is this sum which is claimed by the Petitioner from the Respondents. 2. The Supreme Court of India in International Airports Authority of India vs. Grand Slam International , (1995) 3 SCC 151 held as under: 66. From the above decisions of this Court it becomes clear that an authority created under a statute even if is the custodian of the imported goods because of the provisions of the Customs Act, 1961, would be entitled to charge demurrages for the imported goods in its custody and make the importer or consignee liable for the same even for periods during which he/it was unable to clear the goods from the customs area, due to fault on the part of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 51 and that of Union of India vs. Sanjeev Woolen Mills, 1998 (4) JT 124. In Union of India vs. Sanjeev Woolen Mills, 1998 (4) JT 124 the imported goods were synthetic waste (soft quality), though the Customs Authorities detained the same, being of the opinion that they were prime fiber of higher value and not soft waste. On account of non-release, the imported goods incurred heavy demurrage charges but the Customs Authorities themselves gave an undertaking before the High Court that in the event the goods are found to be synthetic waste, then the Revenue itself would bear the entire demurrage and container charges. Further the Chief Commissioner of Customs, later had ordered unconditional release of the goods and yet the goods had not been released. It is under these circumstances and in view of the specific undertaking given by the Customs Authorities, this Court held that from the date of detention of the goods till the Customs Authorities intimated the importer, the importer would not be required to pay the demurrage charges. But in that case even subsequent to the orders of the Customs Authorities on a suit being filed by one of the partners of the importer firm, an ord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -1999. The goods in question, having already been directed to be released, without the payment of the demurrage charges, the importer must have got the goods released. Having regard to the fact situation of the present case, it would be meet and proper for us to direct Shipping Corporation and Container Corporation, if an application is filed by the Customs Authorities to waive the demurrage charges. The appeal is disposed of accordingly. 5. Relying on these judgments, this Court in the case of Om Petro Chemicals vs. Union of India, 2002 III AD (Delhi) 268 explained the law in the following terms:- 23.Would that however mean that the petitioner must pay demurrage charges even though it is not at fault. Answer to the question must be rendered in negative. The decisions of the Apex Court therefore are authorities for the proposition in certain situation; the court may direct the customs authorities to bear the demurrage charges. In the instant case the customs authorities still insisted that the goods were illegally imported. It sought to justify its stand even before this Court. This Court is not only a court of law but also a court of equity. In a situation of this natur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eral shades of meaning. In the popular sense, the phrase "in good faith" simply means honestly, without fraud, collusion, or deceit; really, actually, without pretence and without intent to assist or act in furtherance of a fraudulent or otherwise unlawful scheme, (see Words and Phrases, Permanent Edn., Vol. 18-A, p. 91). Although the meaning of good faith may vary in the context of different statutes, subjects and situations, honest intent free from taint of fraud or fraudulent design, is a constant element of its connotation. Even so, the quality and quantity of the honesty requisite for constituting good faith is conditioned by the context and object of the statute in which this term is employed. It is a cardinal canon of construction that an expression which has no uniform, precisely fixed meaning, takes its colour, light and content from the context. 8. The Supreme Court in Asstt. Commr., Anti-Evasion Commercial Taxes vs. Amtek India Ltd., (2007) 11 SCC 407 also observed thus:- 9. Whether an act has been done in good faith would depend upon the factual scenario. In order to establish "good faith", it has to be established that what has been imputed concerning the pers ..... X X X X Extracts X X X X X X X X Extracts X X X X
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