Demurrage waiver is not automatic where customs disputes delay release; refusal stands absent arbitrariness or policy breach.

Demurrage charges paid to an airport cargo handler were not refundable as a matter of right where detention arose from a customs dispute over assessable value and the importer had itself contested duty liability. The governing waiver policy barred relief in such circumstances, and judicial review would not interfere unless the refusal of waiver was arbitrary, unreasonable, or contrary to policy. On that basis, the refusal to waive or return the demurrage was upheld.

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Issues: Whether the petitioner was entitled to refund or waiver of demurrage charges paid to the airport cargo handler after release of the aircraft engine, and whether the refusal to grant waiver was arbitrary or unreasonable.

Analysis: The claim for waiver had to be tested against the governing waiver policy and the facts leading to detention of the engine. The earlier adjudication had set aside penalty and confiscation, but the finding that detention was a lawful revenue recovery action remained undisturbed. The governing policy barred waiver where delay arose from dispute regarding assessable value or allied customs issues, and the petitioner had itself contested duty liability. In these circumstances, demurrage could not be treated as refundable as of right, and judicial review did not warrant interference with the refusal of waiver.

Conclusion: The petitioner was not entitled to refund of the demurrage amount, and the refusal by CELEBI to waive or return it was upheld.

Ratio Decidendi: Demurrage charges levied by the custodian of imported goods are not refundable as a matter of right; a court exercising writ jurisdiction will interfere only if refusal of waiver is shown to be arbitrary, unreasonable, or contrary to the governing policy.

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