Customs detention without importer fault can shift demurrage for the certified period, but post-detention liability remains with the importer.

Where imported goods were detained by customs without fault of the importer, the department could be directed in equity to bear demurrage for the certified detention period because the delay arose from the departmental process. That liability was confined to the period covered by the detention certificate, and the importer remained liable for demurrage after expiry of that period until clearance of the cargo, since the port remission regime and the demand on the port trust were not separately displaced.

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Issues: Whether the Customs Department was liable to bear the demurrage charges for the period during which the goods remained detained, and whether the importer remained liable for demurrage after the detention period expired.

Analysis: The detention certificate issued by the Customs authorities recorded that the detention was not due to any fault or negligence of the importer and that the delay arose from the departmental process. That admission was treated as a crucial factor supporting an equitable direction that the Department should bear the demurrage for the period of wrongful detention. At the same time, the petitioner had not challenged the Port Trust's demand and the port remission regime was confined to the period covered by the detention certificate. The Court therefore limited the Department's liability to the certified detention period and held that demurrage after expiry of that period could not be shifted to the Department.

Conclusion: The Customs Department was directed to pay the demurrage charges for the detention period from 30-6-1997 to 4-8-2004, and the petitioner was held liable for demurrage thereafter until clearance of the goods.

Final Conclusion: The petition succeeded only to the extent of shifting the demurrage burden for the certified period of detention to the Customs Department, while the importer remained liable for the balance period before release of the cargo.

Ratio Decidendi: Where the customs detention of imported goods is expressly certified to be without fault of the importer, the Customs Department may be directed in equity to bear the demurrage for the detention period, while liability for the post-detention period remains with the importer unless separately relieved under the applicable port law.

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