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2017 (3) TMI 280 - SC - CustomsRemission of demurrage charges - consignment shipped on CAD Basis - non-clearance of the goods - the question regarding the liability of the appellant to pay the demurrage was never raised before the High Court nor did the High Court consider that question - Held that - though the question was not raised before the High Court the appellant need not be barred from raising this question before us because it is a pure and substantial question of law. No enquiry into any fact is really necessary to decide the said question of law. The only fact which is not clearly established on record is the point of time at which the title in the goods passed to the appellant. But in our opinion (for the reasons to be given later) that fact is wholly irrelevant for determining the authority of the 1st respondent to collect demurrage from the appellant. Whether the Madras Port Trust was acting as an agent of the consignee or the steamer agent when it took charge of goods discharged from the vessel? - Held that - High Court held that the steamer agent s responsibility ceases once the goods are handed over to the Port Trust and the bill of lading is endorsed. The High Court further held that upon the endorsement of the Bill of lading the property in the goods vests in the consignee and therefore the steamer agent s responsibility for the custody of the goods ceases - High Court concluded that only the consignee was liable. The fact that the appellant was not permitted to clear the goods because of the pendency of some proceedings initiated by the customs authorities by itself does not create a right of remission in favour of the appellant. Though it may constitute a relevant circumstance for considering granting remission if the 1st respondent so chooses as a matter of policy. As a matter of fact remission of a part of the demurrage was granted by the 1st respondent. The authority of the 1st respondent to grant or decline remission of any amount due towards any rate payable under THE ACT must be based on rational consideration and a sound policy. Such a requirement is inherent in the fact that 1st respondent is a statutory body discharging important statutory obligations. 1st respondent could not bring anything on record to our notice which demonstrates the reasons for declining remission as claimed by the appellant nor any clear policy of the respondent which regulates the discretion - we deem it appropriate to set aside the decision of 1st respondent dated 16.09.1995 in declining the remission and leave it open to the respondent to take appropriate decision on the application duly recording the reasons for such decision. Appeal disposed off - decided partly in favor of appellant.
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