Customs supervision charges cannot be levied by circular where regulations do not permit recovery during normal office hours

A departmental circular cannot override Regulation 3 of the Customs (Fees for Rendering Services by Customs Officers) Regulations, 1998. Merchant Over Time charges were held not recoverable for supervision of stuffing work performed during officers' normal office working hours, because the governing regulations did not permit such levy. The circular was therefore unenforceable in law, and the refund claim for charges paid on that basis was allowed.

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Issues: Whether Merchant Over Time charges were recoverable for supervision of stuffing work done during normal office working hours, and whether the departmental circular could override Regulation (3) of the Customs (Fees for Rendering Services by Customs Officers) Regulations, 1998.

Analysis: The circular relied on by the department was held to be inconsistent with Regulation (3) of the Customs (Fees for Rendering Services by Customs Officers) Regulations, 1998 and therefore not enforceable in law. Charges of this nature were found not leviable for supervision by departmental officers during their normal office working hours. On that basis, the refund claim had to be allowed.

Conclusion: The assessee was entitled to refund of the Merchant Over Time charges paid for supervision during normal office working hours, and the departmental demand could not be sustained.

Ratio Decidendi: A departmental circular cannot impose or continue a levy that is inconsistent with the governing regulations, and supervision charges are not recoverable for work performed during the officers' normal office working hours where the regulations do not permit such levy.

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