JUDGMENT :

JITENDRA JAIN, J.

1. This petition under Article 226 of the Constitution of India is filed praying for the following relief:

“(a) This Hon’ble Court be pleased to issue an appropriate Writ, Order or direction in the nature of Certiorari and be pleased to direct the authority to modify the CRB Order No. 5/2021, dated 25.02.2021 issued by the Respondent No. 2 and direct the Respondents to grant exemption from payment of cost recovery charges effective from 01.04.2020.”

2. Narrative of the relevant events:

(i) On 21st December 2015, Respondent No. 1 approved a proposal of the Petitioner for setting up Container Freight Station (CFS) at village Dighode, District Raigad, Maharashtra.

(ii) On 6th December 2016, a notification was issued by Respondent No. 3 being CFS Notification No. 11/2016, notifying the CFS station of the Petitioner for unloading of imported goods and for loading of export goods.

(iii) On 21st August 2017, Respondent No. 3 issued a further Notification No. 10/2017 appointing the Petitioner to be a ‘Custodian’ of the imported goods received at the CFS of the Petitioner. The Petitioner was also approved as ‘Customs Cargo Service Provider’ under the said notification. The duration for which the Petitioner was appointed as ‘Custodian’ and as a ‘Customs Cargo Service Provider’ was for two years from the date of the notification dated 21st August 2017.

(iv) On 7th November 2017, Respondent No. 3 issued a public notice notifying the Petitioner as Customs Cargo Service Provider w.e.f. 7th November 2017.

(v) On 16th January 2020, an application was made by the Petitioner to Respondent No. 4 seeking exemption of Cost Recovery Charges in respect of CFS since the Petitioner completed two years of service (from 7th November 2017) and the Petitioner had paid all dues with respect to cost recovery for the said two years. The said application was made pursuant to a Circular No. 13/2009-Customs dated 23rd March 2009.

(vi) On 18th February 2020, Respondent No. 3 informed the Petitioner that precondition for seeking exemption as per Para 5.5 of Circular No. 13/2009-Customs is that the CFS should be in existence for a consecutive period of two financial years and the financial year has been specified to be ‘April to March’ for grant of exemption. Respondent No. 3, therefore, expressed his inability to process the application since the Petitioner’s CFS had not completed its tenure of operation of consecutive period of two financial years.

(vii) On 19th February 2020, Respondent No. 3 directed the Petitioner to deposit the Cost Recovery Charges for the period up to March 2020, so as to complete the tenure of operations for a consecutive period of two full financial years and further advised the Petitioner to resubmit after 31st March 2020, application for waiver from payment of cost recovery charges.

(viii) On 28th April 2020, the Petitioner informed Respondent No. 4 that they have made part payment of Rs. 40,00,000/- towards the Cost Recovery Charges up to March 2020, for the customs staff posted at CFS of the Petitioner. The Petitioner also requested Respondent No. 4 to issue notification exempting the Petitioner from payment of cost recovery and it further records that the formal proposal is already submitted vide letter dated 16th January 2020.

(ix) On 26th November 2020, the Petitioner informed Respondent No. 2 that they have paid all dues for the ‘Custom’ staff posted at its CFS till March 2020. The Petitioner requested Respondent No. 2 to expedite the process of processing exemption application pending with the Respondent No. 2. The copy of the said letter was also marked to Respondent No. 3.

(x) Meanwhile, on 19th January 2021, Respondent No. 1 issued Circular No. 2/2021-Customs. The said circular records that various issues were brought to the notice of the Board through various representations including the issue of effective date of exemption from the Cost Recovery Charges, interest payable on delayed payments, etc. The said ci