IN THE HIGH COURT OF JUDICATURE AT BOMBAY
UJJAL BHUYAN, MILIND N. JADHAV, JJ.
Sahaj Impex – Petitioner
Versus
Balmer Lawrie and Co. Ltd. – Respondent
Writ Petition No. 10492 of 2019
Decided On : 18-01-2021
Customs Act - Release of Imported Goods - Sections 45, 141, 157, and Regulations 6(1)(l) of Handling of Cargo in Customs Areas Regulations, 2009 - The court directed respondent No. 1 to release the goods imported by the petitioner to enable re-export, citing the legal obligations under the mentioned sections and regulations.
Fact of the Case:
The petitioner sought a direction to release imported goods without paying rent, demurrage, and other charges for re-export as per customs order. The goods were detained by the customs department, and the petitioner complied with the conditions for re-export.
Finding of the Court:
The court found that respondent No. 1 was under a legal obligation not to charge rent or demurrage on the detained goods and directed them to release the goods for re-export, emphasizing their responsibility as a Customs Cargo Service Provider.
Issues: Dispute over the release of imported goods and charges for re-export, and the legal obligations of the Customs Cargo Service Provider.
Ratio Decidendi: The court held that respondent No. 1, as a Customs Cargo Service Provider, was obligated to release the goods and could not act in defiance of the law or lawful directions of the customs authorities.
Final Decision: The writ petition was allowed, and respondent No. 1 was directed to release the goods imported by the petitioner to enable re-export, with no order as to costs.
JUDGMENT :
UJJAL BHUYAN, J.
1. Heard Mr. Jha, learned counsel for the petitioner and Mr. J.B. Mishra, learned counsel for respondent No. 2. None has appeared for respondent No. 1 though in terms of registry's note dated 08.01.2021, respondent No. 1 has been duly served as per bailiff report dated 21.12.2020.
2. Before proceeding further, we may mention that in this case, notice was issued as far back on 10.02.2020. In the order dated 13.03.2020, this Court noted that though the respondents are situated at Navi Mumbai and Raigad, notices had not been received yet. Registry was directed to take necessary steps to ensure service of notice. Subsequently, in the proceedings held on 05.11.2020, Mr. Mishra, learned counsel appeared on behalf of respondent No. 2 while respondent No. 1 continued to remain unrepresented. It was made clear that if respondent No. 1 had been served but continued to remain unrepresented, Court would proceed with the hearing. On subsequent dates, registry was directed to serve notice upon respondent No. 1 and thereafter to put up service report. It is in these circumstances that registry put up a note on 08.01.2021 stating that as per the report of bailiff dated 21.12.2020, respondent No. 1 was duly served.
3. By filing this petition under Article 226 of the Constitution of India, petitioner seeks a direction to the respondents to release the Container No. TTNU9895081 containing the imported goods of the petitioner declared vide bill of entry No. 7540462 dated 07.08.2018 without paying rent, demurrage and other charges for re-export as per customs order dated 28.11.2018.
4. Case of the petitioner is that it is a company incorporated under the Companies Act, 1956 having its registered office at Indore. It is engaged in the business of import and export of plastic granules and regrind.
5. It is stated that petitioner had imported plastic regrind from Dubai under bill of Entry No. 7540462 dated 07.08.2018. When the cargo reached Nhava Sheva port, it was put on hold by the Special Investigation and Intelligence Branch of the customs department for the purpose of investigation. In this connection, the Special Investigation and Intelligence Branch kept the container of the petitioner in the container freight station of respondent No. 1 which it is stated is the legal custodian of customs to keep the container during inquiry or investigation. Reference has been made to a public notice No. 26/2010 dated 02.03.2010 issued by the Commissioner of Customs (Export), Nhava Sheva, Maharashtra whereby it was mentioned that some Customs Cargo Service Providers including custodians of container freight stations under the jurisdiction of Jawaharlal Nehru Custom House (JNCH) were charging rent/demurrage on the goods seized/detained/confiscated by the proper officer of customs. It was pointed out that this was a violation of Regulation 6(1)(l) of the Handling of Cargo in Customs Areas Regulations, 2009 which stipulates that Customs Cargo Service Providers including custodians of container freight stations should not charge any rent or demurrage on the goods seized or detained or confiscated by the proper officer. In such cases, the Customs Cargo Service Providers should allow the goods on production of a certificate issued by the proper officer certifying such period without charging and collecting any rent or demurrage for such period. Proforma of such certificate was enclosed to the public notice. Violation of the above regulation would attract penal action, it was cautioned.
6. Respondent No. 1 had sent two notices dated 01.09.2018 and 16.09.2018 with regard to auction of the cargo if the consignee failed to clear the container/cargo within 30 days period. Petitioner has stated that Container No. TTNU9895081 containing the imported cargo of the petitioner declared vide bill of entry No. 7540462 dated 07.08.2018 is lying since 02.08.2018 with respondent No. 1 which is the custodian of customs.
7. A letter dated 28.11.2018 was issued b
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