Delegated legislation cannot impose cost recovery charges without express statutory authority under the Customs Act.

Cost recovery charges for customs staff deployed at airports could not be recovered under Regulation 5(2) of the 2009 Handling of Cargo and Customs Areas Regulations because the Customs Act, 1962 did not expressly authorise such levy. The Tribunal relied on the view that Sections 141 and 157 do not confer power to impose or recover these charges, and held that delegated legislation cannot create a charging authority absent clear statutory sanction. The demands were therefore not maintainable and were set aside, with the assessee succeeding.

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Issues: Whether cost recovery charges could be recovered under Regulation 5(2) of the Handling of Cargo and Customs Areas Regulations, 2009 in the absence of express statutory authority under the Customs Act, 1962.

Analysis: The Tribunal followed the declaration that Regulation 5(2) of the 2009 Regulations is ultra vires the Customs Act, 1962. It accepted that Sections 141 and 157 of the Customs Act do not confer an express power to levy or recover cost recovery charges for salaries of customs officials deployed at the airport, and that such levy cannot be sustained by delegated legislation without special authorization.

Conclusion: Recovery of cost recovery charges from the appellant was held not maintainable and the impugned demands were set aside in favour of the assessee.

Final Conclusion: The appeals succeeded and the orders directing recovery of cost recovery charges were annulled.

Ratio Decidendi: Cost recovery charges cannot be levied or recovered by regulation unless the parent statute expressly authorises such levy; delegated legislation made under the Customs Act, 1962 cannot create that authority in its absence.

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