Customs cannot direct waiver of demurrage where airport cargo charges remain governed by the custodian's statutory regime.

Customs Authorities cannot compel a custodian to waive demurrage for airport cargo where storage and processing charges are governed by the Airport Authority of India Act, 1994 and the regulations made under it. The custodian retains a lien on the cargo until applicable charges are paid, and the Customs Regulations, 2009 are subject to other laws in force. Unless the custodian's statutory or contractual regime itself allows waiver on issue of a detention certificate, customs officers have no power to direct such waiver. Seizure of goods or pendency of customs proceedings does not shift the demurrage burden away from the importer or create liability for Customs or the custodian to absorb those charges.

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Issues: Whether the Customs Authorities can direct waiver of demurrage charges recoverable by the custodian under the Airport Authority of India regulations.

Analysis: The charge for storage and processing of cargo at the airport is governed by the Airport Authority of India Act, 1994 and the regulations framed thereunder, under which the custodian retains a lien on the cargo until applicable charges are paid. The Customs Regulations, 2009 are subject to other laws in force and do not confer power on Customs Authorities to compel the custodian to waive demurrage. The governing principle applied was that, unless the statutory or contractual regime of the custodian itself provides for waiver on issuance of a detention certificate, the Customs Authorities cannot require waiver of demurrage. The fact that the goods were seized or that customs proceedings were pending does not shift the liability for demurrage from the importer to the custodian or Customs Authorities.

Conclusion: The Customs Authorities had no power to direct waiver of demurrage, and the petitioner was not entitled to such waiver.

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