Customs detention certificates require demurrage waiver for certified free periods when delay is not attributable to the importer.

Where imported goods were detained by Customs for examination and testing, and detention certificates confirmed that the delay was not due to the importers' fault or negligence, the applicable port rate rule treated that certified detention period as a free period. The Port Trust's refusal to waive demurrage, based on the view that no waiver was permissible for detention under the Customs Act, was inconsistent with the governing rule. The Madras HC therefore recognised that demurrage had to be waived for the detention period covered by the Customs certificates, and the refusal was unsustainable to that extent.

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Issues: Whether the petitioners were entitled to waiver of demurrage for the period covered by the detention certificates issued by the Customs Authorities.

Analysis: The goods were detained by the Customs Authorities for examination and related testing, and detention certificates were issued certifying that the delay was not attributable to any fault or negligence on the part of the importers. Rule 13(a) of the Scale of Rates of Madras Port Trust Board provided that the detention period for examination under Section 17(3) and (4) of the Customs Act, 1962 and for chemical test under Section 144 of the Customs Act, 1962 would be treated as a free period where such detention was certified by the Collector of Customs. The Port Trust's refusal was based only on the view that no waiver was permissible for detention under those provisions, but that view was inconsistent with the governing rate rule and with the effect of the detention certificates.

Conclusion: The petitioners were entitled to waiver of demurrage for the period mentioned in the detention certificates.

Final Conclusion: The refusal to grant demurrage waiver was unsustainable, and the writ petitions succeeded to the extent of the detention period certified by the Customs Authorities.

Ratio Decidendi: Where the applicable port rate rules expressly provide a free period for customs detention certified by the Collector of Customs, the Port Trust must grant waiver of demurrage for that certified period when the detention is not attributable to the importer's fault or negligence.

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