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2021 Supreme(Mad) 1035

IN THE HIGH COURT OF JUDICATURE AT MADRAS
P.T. ASHA, J.
Mr.S.U.Sirajdeen – Appellant
Versus
M/s.Well Trans Logistics India Pvt. Ltd. - Respondent
A.No.216 of 2021
Decided on : 19-05-2021

Advocates:
Advocate Appeared:
For the Appellant : Mr.G.Derrick Sam

Headnote:

Arbitration and Conciliation Act, 1996 - Section 9 - Sought for an interim measure in the form of a direction - Claimed the benefit of Customs Exemption and had attached all the relevant documents - Whether guidelines/letters which are only advisory in nature and contain no directions under a Statute would bind CFS and could direct them not to charge ground rent - Applicant herein had in the course of their business imported “non-woven interlining” from Vietnam. This is essentially non-woven textile material - Goods were imported under Bill of Entry were shipped to Chennai Port under a Bill of Lading issued by the 1st respondent. The goods had entered the Chennai Port and since the non-woven interlining embroidery paper was under classification CTH applicant had claimed the benefit of Customs Exemption and had attached all the relevant documents - Customs took time to clear the goods - Goods were cleared - second consignment of goods had arrived at the Chennai Port under Bill of Entry goods were also shipped from Hai Phong Port, Vietnam to Chennai Port under Bill of Lading - goods were accompanied by a test report the Textile Testing Centre – Held, Applicant with regard to Regulation 6 (1) (l), same was the subject matter of consideration before the Bench of the Delhi High Court in the case through its Import Shed and another – W.P.(C). C.M.Noof 2019, the petitioner therein had raised the very same defense as raised in the instant case - Division Bench has held that the charging of demurrage by CELEBI was in terms of agreement that they entered into - Charge being in terms of the agreement between CELEBI and Delhi International Airport Limited it should be understood that the charging and recovering of demurrage was only in accordance - Customs not giving the clearance and thereafter, on account of request for waiver of detention charges not being acceded to and also taking note of the 2nd respondent's response in their e-mail dated 20.11.2020, the applicant shall be permitted to clear the goods contained in container no. the Bill of Entry - case the 2nd respondent has already received instructions from their headquarters regarding the waiver of the detention charges the same shall be extended to the applicant - Application is disposed

JUDGMENT :

The applicant herein has moved this Court for the grant of interim measures under Section 9 of the Arbitration and Conciliation Act, 1996, hereinafter, for the sake of brevity, referred to as the Act.

2. The applicant has sought for an interim measure in the form of a direction to the 1st and 2nd respondents to release the imported goods covered under the House Bill of Lading No.STT-HPH-2003001 dated 11.03.2020 and contained in container No.CBHU9083374 after waiving the container detention charges applicable till the date of clearance of goods in terms of the letters dated 03.10.2020 and 10.11.2020 of the Deputy Commissioner of Customs (Group 3), Chennai in F.No.S59/30/2020-Gr.3.

3. The brief facts preceeding the filing of the application by the applicant are as follows:

The applicant herein had in the course of their business imported “non-woven interlining” from Vietnam. This is essentially non-woven textile material. The goods were imported under Bill of Entry dated 18.02.2020. They were shipped from Hai Phong Port, Vietnam to Chennai Port under a Bill of Lading dated 24.01.2020 issued by the 1st respondent. The goods had entered the Chennai Port and since the non-woven interlining embroidery paper was under classification CTH 5603 9200, the applicant had claimed the benefit of Customs Exemption and had attached all the relevant documents. However, the Customs took time to clear the goods. Ultimately, the goods were cleared.

4. Meanwhile, the second consignment of goods had arrived at the Chennai Port under Bill of Entry dated 02.04.2020. These goods were also shipped from Hai Phong Port, Vietnam to the Chennai Port under the Bill of Lading dated 11.03.2020 issued by the 1st respondent herein. The goods were accompanied by a test report dated 19.03.2020 from the Textile Testing Centre, Vietnam Textile Research Institute, certifying the composition of the goods imported and the report was also presented to the Proper Officer of Customs. However, the Customs Authority refused to allow the applicant to clear the goods as a result of which demurrage and detention charges kept mounting.

5. The applicant was therefore constrained to file W.P.No.7677 and 7680 of 2020 before this Court for directing the Proper Officer of the Customs to assess and clear the goods and issue waiver certificate recommending waiver of demurrage and detention charges.

6. By order dated 27.05.2020, this Court had directed the Assistant Commissioner of Customs to provisionally assess and clear the goods within a period of three weeks from the date of receipt of a copy of the order. By letter dated 25.06.2020, the Assistant Commissioner of Customs (DIU) had stated that the goods covered under the Bill of Entry No.6929147 dated 18.02.2020 was detained for investigation in respect of misclassification of cargo declared as non-woven interlining. In view of this, the CFS Manager was directed to take action for waiver of rent/demurrage.

7. Likewise in respect of the goods covered under the Bill of Entry No.7384974 dated 02.04.2020, the Deputy Commissioner of Customs (Group 3) by letter dated 03.10.2020 had directed the 1st respondent to waive the detention/demurrage charges. The goods covered under the Bill of Entry dated 18.02.2020 in the meantime had been cleared.

8. The 1st respondent who was the freight forwarder, on receiving this letter requested the applicant to have the said letter addressed directly to the 2nd respondent stating that it is the 2nd respondent who is the actual carrier. In the said letter, they have referred to the Master Bill of Lading dated 11.03.2020 which refers to the 2nd respondent. By an e-mail dated 09.11.2020 the counsel for the applicant had requested the Customs Department to address the letter to the 2nd respondent. By an e-mail dated 10.11.2020, the Deputy Commissioner of Customs (Group 3) had issued the waiver letter to the 2nd respondent so that the Cargo covered under the Bill of Lading dated 11.03.2020 could be released

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