The Gujarat High Court held that the cargo service providers should allow goods on production of certificates certifying the period of seizure without charging any demurrage.
The petitioner, Green Gold Timbers Pvt. Ltd. raised the issue whether the customs cargo service provider is entitled to charge any rent or demurrage on the goods seized or detained or confiscated by the Superintendent of Customs or Appraiser or Inspector of Customs or Preventive Officer or Examining Officer, as the case may be.
The issue is no longer resolved in view of a recent decision of the Bombay High Court in the case of Sahaj Impex vs. Balmer Lawrie & Co. Ltd. and another (Writ Petition No.10492 of 2019 decided on 18th January 2021), wherein the Bombay High Court, has observed that Section 45 of the Customs Act under the heading ‘clearance of imported goods’ deals with restrictions on custody and removal of imported goods. Sub-section (1) says that save as otherwise provided in any law for the time being in force, all imported goods unloaded in a customs area shall remain in the custody of such person as may be approved by the Principal Commissioner of Customs or Commissioner of Customs until they are cleared for home consumption or are warehoused or are transhipped in accordance with the provisions of Chapter VIII which deals with goods in transit.
The division bench of Justice J.B.Pardiwala and Justice Nisha M.Thakore held that this position seems to have been further clarified by the Commissioner of Customs (Export) by way of a public notice No.26/2010 with the further clarification that the customs cargo service providers shall allow the goods on production of a certificate issued from the proper officer certifying such period of seizure or detention or confiscation without charging and collecting any rent or demurrage for such period.
“On account of the contractual relationship if the respondent wants to recover any other dues from the writ- applicant, it is open for the respondent to approach the appropriate forum for obtaining appropriate relief,” the court said
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