SUREN INTERNATIONAL LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) The Petitioner is aggrieved by the levy of demurrage charges by the Container Corporation of India Ltd. ("CCI") Respondent No. 3 herein in respect of 40 containers. The prayer is for a direction to Respondent No.2, Commissioner of Customs to de-stuff the 13 containers remaining out of the 40 and release them without any further delay. Directions are also sought to Respondent No. 2 to pay the shipping line charges to the respective shipping lines.

(2.) In July 2001, on receiving a tip off about clandestine import of metal scrap, containers imported by the Petitioner purportedly containing aluminum scrap were seized by the Customs Department. The Petitioner was alleged to have imported not just aluminum scrap but scrap of other metals like nickel and tin which were seized and taken control of by the Customs Department. The seized containers were transported to the Inland Container Depot, Tuglakabad, New Delhi and lodged at the warehouse of the CCI. The Petitioner states that the shipping line i.e. owners of the containers, began to pressurize the Petitioner into getting the containers released. On 20th August 2001, the Petitioner asked the Customs Department to inspect the containers at an early date so that they could be released. It was urged that any delay in the release of the containers would result in demurrage and detention charges owing to CCI accumulating. Further, reminders were sent on 26th and 28th August 2001. In its letter dated 7th September 2001, the Petitioner stated that it was ready to furnish any security or bond commensurate with the value of the goods. The Petitioner's case was that the Customs Department should bear the liability for the demurrage payable to CCI as they were responsible for the delay in the release of the goods from 4th August 2001 onwards. According to the Petitioner further reminders were sent on 26th September, 10th October, 18th October and 25th October 2001. The Petitioner states that the Customs Department deliberately delayed the release of the containers.

(3.) The Petitioner relied upon Circular Nos. 84 of 1995 dated 25th July 1995, Circular No. 83 of 1998 dated 5th November 1998 and Circular No. 42 of 2001 dated 31st July 2001 which mandated the de-stuffing of the containers and their release within six months of their importation. The Petitioner states that it sent reminders again on 16th February 2002, 26th August 2002 and 7th September 2002. Since nothing was done by the Customs Department, the Petitioner sent letters dated 26th September, 17th October, 14th November and 6th December 2002. Thereafter, the goods contained in 40 containers were assessed and Petitioner paid the custom duty and penalty on the goods. It is stated that CCI was not inclined to release the goods without payment of the demurrage charges. The Petitioner paid ' 3,46,10,173.24 as demurrage charges for the 27 containers. According to the Petitioner, the said amount was liable to be paid by the Customs Department in the light of the circulars referred hereinbefore. The demurrage charges for the balance 13 containers had by the time of filing the present petition on 21st May 2007, mounted to ' 2,01,53,025/-.