Court grants Singapore company release of consignment abandoned by importer under Bill of Lading.

The Court granted the Petitioner, a Singapore-based company, the release of a consignment under Bill of Lading abandoned by the importer. The Petitioner was allowed to clear the goods as the owner, following the precedent in Agrim Sampada. The Court permitted the Petitioner to file a new bill of entry and pay customs duty and interest, but held them liable for demurrage charges based on importer fault, directing payment of 50% until a specified date and full charges thereafter. Remedies against the importer and customs authority were preserved, and the Petitioner could clear goods under protest to challenge the order.

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Issues Involved:
1. Release of consignment under Bill of Lading.
2. Cancellation of previous bill of entry and permission to file a new bill of entry.
3. Waiver of charges, interest, and penalties levied upon the consignment.
4. Liability for demurrage charges.

Issue-wise Detailed Analysis:

1. Release of consignment under Bill of Lading:
The Petitioner, a Singapore-based company, sought the release of a consignment under Bill of Lading No. HLCUTOR220708684 from the Respondent - Commissioner of Customs. The consignment was initially intended for M/s Earth Wire Private Limited, which failed to clear the goods by not paying the customs duty. The Petitioner argued that the importer abandoned the goods, and as the owner, the Petitioner should be allowed to clear the goods. The Court recognized that the importer had effectively abandoned the goods by not paying the customs duty and not clearing the goods. The ownership of the goods was deemed to have passed to the Petitioner, who had received all original documents from the bank. The Court referred to the judgment in Agrim Sampada v. Union of India, which supported the release of goods to the owner when the importer abandons them.

2. Cancellation of previous bill of entry and permission to file a new bill of entry:
The Petitioner sought the cancellation of the previous bill of entry filed in favor of M/s Earth Wire Private Limited and requested permission to file a new bill of entry as per the new consignee. The Court acknowledged that under Section 2(26) of the Customs Act, 1962, the definition of "importer" includes the owner or beneficial owner of the goods. Given that the title of the goods had passed to the Petitioner, the Court permitted the Petitioner to file a new bill of entry.

3. Waiver of charges, interest, and penalties levied upon the consignment:
The Petitioner requested the waiver of various charges, interest, and penalties levied upon the consignment. The Court held that the Petitioner was willing to pay the customs duty and interest but contested the imposition of demurrage charges. The Court directed the Petitioner to pay the customs duty and interest as assessed.

4. Liability for demurrage charges:
The Court examined the issue of demurrage charges in detail. The Petitioner argued that as per the judgment in Agrim Sampada, they should not be liable for demurrage charges. The Court reviewed several Supreme Court and High Court decisions on demurrage charges, including International Airports Authority of India v. M/s. Grand Slam International and Om Petro Chemicals v. Union of India. The Court concluded that if the importer is at fault, demurrage charges would be liable. In this case, the importer had processed the documents but failed to clear the goods. The Court held that the Petitioner would be liable to pay 50% of the demurrage charges up to 3rd December 2022, and full demurrage charges from 3rd December 2022 onwards. The Petitioner was directed to appear before the customs authority to quantify the exact amounts payable.

Conclusion:
The Court disposed of the petition with the following directions:
a) The Petitioner shall pay the customs duty and interest.
b) The Petitioner shall pay 50% of the demurrage charges till 3rd December 2022 and full charges thereafter.
c) The Petitioner's representative shall appear before the customs authority to quantify the payable amounts.
d) Remedies against the importer and customs authority are left open.
e) The Petitioner can clear the goods by paying demurrage charges under protest if they wish to challenge the order.

The petition was disposed of in these terms, with a copy of the order provided under the signature of the Court Master.

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