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        Case ID :

        2022 (7) TMI 29 - HC - Customs

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        Court partially allows writ petitions, upholds waiver of demurrage charges. Petitioner directed to pay charges, allowed re-export. The court partly allowed the writ petitions, upholding the partial waiver of demurrage charges for the period between 27.01.2015 and 19.10.2015. The ...
                      Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.

                          Court partially allows writ petitions, upholds waiver of demurrage charges. Petitioner directed to pay charges, allowed re-export.

                          The court partly allowed the writ petitions, upholding the partial waiver of demurrage charges for the period between 27.01.2015 and 19.10.2015. The petitioner was directed to pay demurrage charges for the period from 19.10.2015 to 19.04.2016, with the Customs Department responsible for costs thereafter. The petitioner was permitted to re-export the goods upon complying with specified charges within the given timeframe.




                          Issues Involved:

                          1. Legality of the impugned communication dated 23.12.2016.
                          2. Entitlement to waiver of rent/demurrage for the period beyond 19.10.2015.
                          3. Compliance with the Order-in-Original dated 05.01.2016.
                          4. Responsibility for the storage costs of the imported consignment.
                          5. Validity of partial waiver granted by the third respondent.

                          Issue-wise Detailed Analysis:

                          1. Legality of the Impugned Communication dated 23.12.2016:
                          The impugned communication ordered a partial waiver of rent and demurrage for the period between 27.01.2015 to 19.10.2015. The petitioner challenged this communication as illegal, without jurisdiction, and against the provisions of the Act. The court upheld the partial waiver granted by the third respondent, emphasizing that the waiver was in accordance with Regulation 6(1)(l) of the Handling of Cargo in Customs Areas Regulations, 2009.

                          2. Entitlement to Waiver of Rent/Demurrage for the Period Beyond 19.10.2015:
                          The petitioner argued for a full waiver of rent/demurrage charges beyond 19.10.2015, citing several representations and previous court orders. The court, however, directed that the petitioner is liable for demurrage charges from 19.10.2015 to 19.04.2016, as the petitioner did not show inclination to re-export the consignment during this period. The Customs Department was held responsible for the storage costs beyond 19.04.2016 due to their failure to facilitate re-export despite the existing orders.

                          3. Compliance with the Order-in-Original dated 05.01.2016:
                          The Order-in-Original dated 05.01.2016, passed by the Additional Commissioner of Customs, concluded that the imported R22 Refrigerant Gas was unauthorized and liable to be confiscated. The petitioner paid the redemption fine and penalties but failed to re-export the goods promptly. The court noted that the petitioner should have been allowed to re-export the goods after paying the fines and penalties on 22.01.2016.

                          4. Responsibility for the Storage Costs of the Imported Consignment:
                          The court held that the petitioner is responsible for the demurrage charges from 19.10.2015 to 19.04.2016. For the period after 19.04.2016, the Customs Department must bear the storage costs due to their non-cooperation in allowing the re-export of the goods. The court directed the Customs Department to compensate the fourth and fifth respondents (private storage providers) for the storage costs incurred beyond 19.04.2016.

                          5. Validity of Partial Waiver Granted by the Third Respondent:
                          The court upheld the partial waiver granted by the third respondent, stating that it was in line with the relevant regulations and previous court decisions. The court directed the petitioner to pay the demurrage charges for the specified period and allowed the re-export of the goods, provided the petitioner complies with the terms of the order within the stipulated time.

                          Conclusion:
                          The writ petitions were partly allowed. The court upheld the partial waiver of demurrage charges for the period between 27.01.2015 and 19.10.2015. The petitioner was directed to pay the demurrage charges for the period from 19.10.2015 to 19.04.2016, with the Customs Department bearing the costs thereafter. The petitioner was allowed to re-export the goods upon payment of the specified charges within the given timeframe.
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                          ActsIncome Tax
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