Customs detention bars demurrage for the protected period where a detention certificate and final appellate relief support waiver.

When goods are detained by customs, the custodian or customs cargo service provider cannot levy demurrage for the period of detention if a detention certificate directs waiver and the appellate order on the detention has attained finality. The Court applied the settled position that detention by customs bars demurrage for the protected period, and held that contrary authorities did not assist the respondents on these facts. The petitioner was therefore entitled to clear the goods without paying demurrage, subject only to other charges accruing after the detention certificate until actual clearance.

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Issues: Whether the custodian or customs cargo service provider could demand demurrage for goods detained by customs, and whether the petitioner was entitled to release of the goods without payment of such charges in view of the detention certificate and the appellate order.

Analysis: The goods were detained by customs, revaluation was challenged successfully in appeal, and the appellate order in favour of the petitioner attained finality. After the petitioner paid the customs duty, a detention certificate was issued directing that no rent or demurrage be charged for the relevant period. The Court relied on the settled position that where goods are detained by customs, the custodian is not entitled to levy demurrage for the period of detention, and that the contrary authorities cited by the respondents did not assist them on the facts of the case. The statutory framework and the binding effect of the detention certificate supported the petitioner's claim for waiver.

Conclusion: The demand for demurrage was impermissible, and the petitioner was entitled to clear the goods without payment of demurrage, subject to payment of other charges for the period after the detention certificate until actual clearance.

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