MODERN OVERSEAS Vs. UNION OF INDIA (UOI)

JUDGEMENT

(1.) AT this stage, the only legal jangle between the parties is as to who would pay the demurrage charges? The petitioner has prayed that the goods in question should be released without saddling any kind of liability upon it. The indisputable facts of the above said case are these: The petitioner is engaged in manufacture, export and import of various items of building hardware. Petitioner's goods were illegally withheld and detained by the Customs officer for unusually long time on the ground that the same were undervalued. The petitioner represented before the Dy. Commissioner of Customs vide representation dated 21 -7 -2004 and 11 -8 -2004. The Customs Department also alleged that petitioner had misled the department as to nature and description of the goods. The goods of the petitioner were confiscated and penalty was imposed upon the petitioner.

(2.) THE Commissioner of Customs vide his order dated 17 -8 -2004 asked for payment of differential duty and penalty besides offering an option for release of the goods. The petitioner preferred an appeal. The Commissioner of Customs (Appeals) allowed the appeal and ordered the unconditional release of the goods as prayed for.

(3.) THE Commissioner of Customs issued detention certificate dated 4 -11 -2004 for a period ranging from 21 -7 -2004 to 3 -12 -2004 assigning the reason of detention as investigation for suspected under valuation. The Commissioner of Customs also preferred an appeal before Customs Excise and Service Tax Appellate Tribunal challenging the order dated 13 -10 -2004 passed by the Commissioner of Customs (Appeals). The petitioner sent representation before the Commissioner of Customs dated 4 -12 -2004 and to M/s. German Express Shipping Agency (India) Pvt. Ltd., respondent No. 4 to the effect that the liability to pay the damages and demurrage charges lies with the Commissioner of Customs and he is responsible for withholding their goods illegally. M/s. German Express Shipping Agency (India) Pvt. Ltd. replied that they could waive Rs. 50,000/ - out of demurrage charges accrued up to 3 -1 -2005 in case the delivery of the cargo is taken up to 10 -1 -2005. In the meantime, the Commissioner of Customs again issued the detention certificate on 10 -1 -2005 to the effect that the detention certificate issued earlier up to the period of 3 -11 -2004 be read as up to 3 -1 -2005. Petitioner served a legal notice on 10 -1 -2005 calling upon Union of India through Secretary, Ministry of Finance, Department of Customs and Excise and Commissioner of Customs, Respondent Nos. 1 and 2 respectively to ensure the release of the goods immediately without any further delay pursuant to the orders passed by the Commissioner of Customs (Appeals) besides paying a sum of Rs. 7 lacs towards demurrage because of the delay so caused.