Demurrage remains an independent port liability, and customs clearance delays do not shift payment to the Customs Department.

Demurrage under the Major Port Trusts Act is an independent statutory charge arising on landing and occupation of port premises, supported by the port's lien and power to retain and sell goods for recovery. Delay in customs clearance or import formalities under the Customs Act does not transfer that liability to the Customs Department or extinguish the importer's obligation. The liabilities under customs law and port law remain distinct, and a writ court cannot direct the Customs Department to pay or reimburse port demurrage. The importer therefore remains liable to satisfy the demurrage in accordance with law.

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Issues: Whether the Customs Department or the port authority could be directed to pay or reimburse demurrage charges claimed in respect of imported goods, and whether the importer could avoid liability for demurrage on the ground of delay in customs clearance and import processing.

Analysis: The governing scheme under the Major Port Trusts Act, 1963 treats demurrage as payable on landing of the goods, and recognises a port lien over the imported goods for such dues. The statutory power to retain and, after the prescribed period and notice, sell the goods for recovery of dues shows that demurrage is a charge arising from the occupation of port space and is not dependent on fault attributable to customs authorities. The Customs Act, 1962 requires filing of a bill of entry and completion of customs formalities before clearance, but any delay in those formalities does not shift the port's statutory entitlement to demurrage onto the Customs Department. The settled legal position is that the liabilities under the customs law and the port law are distinct, and a writ court cannot direct the Customs Department to bear or reimburse port demurrage.

Conclusion: The request to direct the Customs Department to pay or reimburse demurrage was rejected, and the importer remained liable to satisfy the balance demurrage in accordance with law.

Final Conclusion: The writ petition failed because demurrage under the port statute was held to be an independent statutory liability, unaffected by the alleged delay in customs processing.

Ratio Decidendi: Demurrage payable under the port law is an independent statutory charge for storage and occupation of port premises, and it cannot be shifted to the Customs Department merely because customs clearance was delayed.

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