2018 (10) TMI 1480 - AT - Customs

Tribunal Upholds Customs Decision on Cost Recovery Charges, Emphasizes Contractual Obligations

The Tribunal dismissed the appeal against the Commissioner of Customs' decision regarding Cost Recovery Charges for failing to meet the target at the ... Imposition of Cost recovery charges on custodian of Inland Container Depot, Jodhpur - non-fulfillment of target of 7200 TEUs (20 meters length containers) - Held that:- As per the agreement, the assessee-Appellants will have to pay the Cost Recovery Charges of Customs Officers posted at ICD if failed to meet the target. In the past (2009-10), the assessee-Appellants have paid an amount of ₹ 96,00,000/- as Cost Recovery Charges. For waiver, the Board has rejected the application of the assessee-Appellants vide order dated 12.04.2017. It is for the Department/Board either to waive or recover the Cost Recovery Charges. This is the discretion of the Department. It makes no difference if the Officers posted were from the cadre or out sourced by the Department. Impugned order sustained - appeal dismissed - decided against assessee-Appellants. Issues:Appeal against Order-in-Appeal No. 07/2017 dated 05.12.2017 passed by the Commissioner of Customs, Jaipur regarding Cost Recovery Charges for failing to meet the target of 7200 TEUs at Inland Container Depot, Jodhpur.Analysis:The appellant, appointed as the custodian of Inland Container Depot, Jodhpur, was required to meet a target of 7200 TEUs and pay Cost Recovery Charges if the target was not met. The appellant had paid &8377; 96,00,000 in 2009-10 as charges. Despite a previous waiver, the Board rejected the appellant's application for waiver in 2017. The Tribunal remanded the matter to consider the exemption, but the Board's decision remained unchanged. The Tribunal noted that the decision to waive or recover the charges was at the discretion of the Department, regardless of the origin of the Customs Officers. The Tribunal found no reason to interfere with the impugned order and dismissed the appeal, allowing the appellant to approach the Board for reconsideration if desired.This judgment revolves around the dispute of Cost Recovery Charges imposed on the appellant for failing to meet the prescribed target at the Inland Container Depot. The case highlights the contractual obligation of the appellant to pay these charges, as specified in the agreement. Despite a previous waiver, the Board's rejection of the appellant's waiver application led to the appeal. The Tribunal emphasized the discretionary power of the Department to decide on waiving or recovering such charges. The judgment underscores the importance of contractual obligations and the limited scope of interference by the Tribunal in matters left to the discretion of the concerned authority.The Tribunal's decision reaffirms the principle that the Department has the discretion to determine the imposition or waiver of Cost Recovery Charges based on contractual agreements. The judgment emphasizes that the Tribunal's role is limited in interfering with such discretionary decisions, especially when no new facts emerge during subsequent litigations. The appellant's right to approach the Board for reconsideration is acknowledged, providing a potential avenue for redressal. Overall, the judgment underscores the importance of upholding contractual obligations and respecting the discretionary powers of administrative bodies in such matters.