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2007 (7) TMI 310 - HIGH COURT OF DELHISeizure of the polyster fabric imported - demurrage charges which was sought to be deducted from the sale proceeds - Held that:- On confiscation under Section 126 of the Customs Act, the goods vest with the said authority. When the goods were in custody and possession of the customs department, they were stolen. Admittedly, the goods were covered by a valid licence and, therefore, goods could not have been seized. The goods have to be returned to the respondent or the value thereof paid. Since the goods were stolen, while they were in custody of the customs department, they are liable to make good the loss suffered by the respondent. As there was delay in selling the goods even after the orders were passed by this Court and, therefore, the aforesaid burden to pay demurrage charges cannot be fasten on the respondent. Thus modify the order of the learned Single Judge to the extent that the demurrage charges would not be payable by the respondent for the period after expiry of six months from 4th April, 1988. The appellant will be liable to pay demurrage charges for this period.
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