Customs reassessment and demurrage liability: goods to be released on payment, while delay-related demurrage fell on authorities.

Goods were directed to be released after compliance with the reassessment order and payment of duty assessed thereunder. Where the customs department had received the DRI no-objection on 11.04.2018, delay in completing assessment or reassessment between 11.04.2018 and 28.07.2018 could not be attributed to the importer. Demurrage for that period was therefore held to lie with the customs authorities, not the importer, while release of the goods remained conditional on satisfaction of the reassessment terms.

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Issues: Whether, after completion of reassessment and payment of duty in terms of the reassessment order, the goods were liable to be released and whether the demurrage for the period of delay in reassessment was to be borne by the petitioner or by the customs authorities.

Analysis: The respondents stated that reassessment had been completed and that, on payment of duty in accordance with the reassessment order, the goods would be released. The Court also noted that the customs department had received an NOC from DRI on 11.04.2018, and therefore any delay in completing assessment or reassessment for the period between 11.04.2018 and 28.07.2018 could not be attributed to the petitioner. On that basis, the demurrage for that period was held payable by the customs authorities.

Conclusion: The goods were to be released upon compliance with the reassessment order, and the demurrage for the specified period was to be borne by the customs authorities, not the petitioner.

Final Conclusion: The writ petition was allowed with directions governing release of the goods and allocation of demurrage liability.

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