2022 (7) TMI 584 - HC - Customs

High Court Gujarat: Release of detained goods per Customs Authorities' directive, waiving demurrage charges. Timely compliance stressed.

M/s SUMMIT ENTERPRISE Versus PRINCIPAL COMMISSIONER/ COMMISSIONER OF CUSTOMS

The High Court of Gujarat ordered the release of detained goods in adherence to Customs Authorities' directive for waiving demurrage charges. The court ... Illegal detention of imported goods - waiver of the dammurage charges - Dry Dates - freely importable goods or not - seeking release and handover the physical possession of the goods to petitioner - It is the case of the petitioner that the imported goods were detained without passing any order of detention or without issuance of any seizure memo in terms of Section 110 of the Customs Act, 1962, which is the only enabling Section to detain the goods imported by the petitioner - HELD THAT:- Since the goods were already detained for more than one month and the free days as provided by the respondent No.4 were restricted to only 14 days from the date of filing of the Bills of Entries, the petitioner having requested the respondent Nos.1 and 2 to issue Detention Memos in terms of Regulation 6(1)(l) of the Handling of Cargo in Customs Area Regulation, 2009 as well as Regulation 10 of the Sea Cargo Manifest Regulation, 2018. The respondent No.2 vide letter dated 25.03.2022 have issued Detention Memo under Sea Cargo Manifest Regulations, 2018, wherein it has been directed that the Shipping Lines shall not charge Container Demmurge Charges for the period of Detention. The order passed by the Customs Authority dated 25th March, 2022 is binding upon the respondent Nos.3 to 6 and therefore, respondent Nos.3 to 6 are required to implement the order dated 25th March, 2022 passed by the Customs Authorities for waiver of the dammurage charges under Regulation 10(1)(l) of the SCMTR - without going into further details and merits of the case, the respondent Nos.3 to 6 are hereby directed to release the goods which are under their custody and not under the detention of the Customs Authorities by implementing the order dated 25th March, 2022 for waiver of the dammurage charges under Regulation 10(1)(l) of the SCMTR. Such exercise shall be completed within two weeks from the date of receipt of this order. Petition disposed off. Issues:1. Petitioner's request for the release of detained goods and initiation of action against certain respondents.2. Customs Authorities' directive for waiver of detention charges and respondents' refusal to release goods.3. Compliance with Customs Authorities' order and challenge to the directive.Analysis:1. The petitioner sought relief through a writ petition under Article 226 of the Constitution, requesting the release of imported 'Dry Dates' and action against the respondents. The petitioner's goods were detained without proper documentation, leading to a delay in clearance. The petitioner highlighted the necessity of Phytosanitary Certificates and Fumigation for food items' import clearance. Despite self-assessment of Customs duty, the goods were unlawfully detained without a seizure memo as per the Customs Act, 1962.2. The Customs Authorities issued an order on 25th March, 2022, directing waiver of detention charges under Regulation 10(1)(l) of the Sea Cargo Manifest and Transhipment Regulations, 2018. However, the respondents, particularly shipping lines, continued to demand container detention charges despite the directive. The petitioner's plea for waiver of demurrage charges was not granted, leading to further delays and financial burden.3. The Court acknowledged the Customs Authorities' binding order for waiving demurrage charges and directed the respondents to release the goods within two weeks in compliance with the directive. The judgment emphasized the necessity for respondents to implement the order promptly. It clarified that any challenge to the Customs Authorities' order by the respondents would not be obstructed by the current directive, maintaining a neutral stance on potential legal proceedings.In conclusion, the High Court of Gujarat disposed of the petition, ordering the release of the detained goods in adherence to the Customs Authorities' directive for waiver of demurrage charges. The judgment underscored the importance of timely compliance with official orders and left room for potential challenges to the directive without affecting the current release order.