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2013 (9) TMI 180 - HC - CustomsWaiver of demurrrage charges - Confiscation u/s 11 - Penalty u/s 14 - Held that:- The petitioner could not refer to any provision under which the Customs Authorities can direct the Warehouse to waive off the demurrage charges. Admittedly, there was provisional release of goods on payment of redemption fine and penalty. The petitioner has not availed such option. Once the provisional release of goods ordered at the request of the petitioner itself has not been availed, therefore, the petitioner has taken a calculated risk of incurring demurrage charges as in the absence of release of goods, the Customs Authorities had to store the goods in safe custody. Decisions in Supreme Court in International Airports Authority of India etc. Vs. M/s Grand Slam International & Om etc. [1995 (2) TMI 70 - SUPREME COURT OF INDIA] and in Trustees of Port of Madras Vs. Nagavedu Lungi & Co. & others [1995 (4) TMI 70 - SUPREME COURT OF INDIA] followed. The guidelines framed vide Circular were in respect of allowing to open CFSs and ICDs in private sector, which were called as ‘Custodian’ - It was the Custodian, who was not to charge any rent or demurrage on the goods detained by the Customs Department - But the Customs Department was required to pay the rent to the Custodian after the ownership of the goods vested in the Revenue after confiscation - Such provision though was between the Custodian and the Revenue; still it does not absolve the petitioner to pay the demurrage charges - The payment of demurrage charges was not a pre-condition for storage of goods as per clause 15. But after the goods vests with the Revenue, the rent of the goods had to be paid by it - It does not contemplate the situation where after adjudication process the goods do not vests with the State, but vests with the importer - In such a situation, the importer would be liable to pay demurrage charges, as owner of the goods stored in the Warehouse - The guidelines do not provide for demurrage free storage even for the revenue. The scope of the Regulations is wider than the Circular, as it prohibit the Customs Cargo Service Provider to charge any amount on the goods seized or detained. But since the goods were seized in the year 2000, such Regulations will not come to the rescue of the petitioner. Even the said Regulations are to determine the relationship between the service provider and the Revenue and not in respect of services availed by the importer. - Decided against Petitioner.
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