Customs cannot waive demurrage charges, Custodian's prerogative under AAI Regulations 2003. Importers liable for charges.

The Court dismissed the petition, affirming that Customs Authorities cannot direct the waiver of demurrage charges, which is the prerogative of the Custodian under AAI Regulations, 2003. The judgment highlighted the distinct roles of Customs Authorities and Custodians in managing cargo terminals and emphasized the importer's liability to pay demurrage charges regardless of Customs actions.

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Issues:
1. Release of goods for home consumption without demurrage charges in accordance with Customs Regulations, 2009.
2. Applicability of demurrage charges under AAI Regulations, 2003.
3. Authority to waive demurrage charges - Customs Authorities vs. Custodian.

Issue 1: Release of Goods Without Demurrage Charges
The petitioner sought the release of imported goods without incurring demurrage charges under Customs Regulations, 2009. The goods were confiscated due to misdeclaration, and investigations led to the imposition of penalties. The petitioner requested release upon payment of dues but faced refusal due to unpaid demurrage charges. The respondent No.1 argued that demurrage charges could not be waived as penalties had been imposed, citing AAI Regulations, 2003.

Issue 2: Applicability of Demurrage Charges under AAI Regulations, 2003
The respondent No.1 contended that demurrage charges were governed by AAI Regulations, 2003, not Customs Regulations, 2009. The AAI Regulations specified that demurrage charges shall not be waived if penalties or fines are imposed by Customs Authorities. The respondent emphasized the distinction between the roles of Customs Authorities and AAI in managing cargo terminals and setting charges for storage and processing of goods.

Issue 3: Authority to Waive Demurrage Charges - Customs Authorities vs. Custodian
The Court analyzed previous judgments, including Global Impex and Mate (India) Pvt. Ltd., to determine the authority to waive demurrage charges. It was established that Customs Authorities cannot direct waiver of demurrage charges, which falls under the jurisdiction of the Custodian as per AAI Act. The Court emphasized that even if Customs actions were unjustified, importers must initially pay demurrage to the Custodian. The petitioner's failure to pay penalties despite the decision led to the dismissal of the petition, ruling that the appellant was not entitled to waiver of demurrage charges.

In conclusion, the Court dismissed the petition, affirming that Customs Authorities cannot direct the waiver of demurrage charges, which is the prerogative of the Custodian under AAI Regulations, 2003. The judgment highlighted the distinct roles of Customs Authorities and Custodians in managing cargo terminals and emphasized the importer's liability to pay demurrage charges regardless of Customs actions.

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