DELHI INTERNATIONAL AIRPORT PRIVATE LIMITED Vs. UNION OF INDIA, DEPARTMENT OF REVENUE, MINISTRY OF FINANCE AND OTHERS

JUDGEMENT

(1.) The petitioner ( DIAL hereafter) challenges Regulation 6(1)(1) of the Handling of Cargo in Customs Areas Regulations, 2009 [hereafter Cargo Regulations ] as ultra-vires the provisions of Customs Act, 1962 and furthermore on the ground of arbitrariness and unconstitutionality (as violative of Articles 14 and 19 (1)(g) of the Constitution of India.

(2.) The Operation, Maintenance and Development Agreement ( the Agreement ) was signed on 04-04-2006, between the Airports Authority of India (AAI) and DIAL, pursuant to Sec. 12A of the Airports Authority of India Act ( the AAI Act ) whereby the latter was granted exclusive right and authority for performing the functions of operating, maintaining, developing, designing, constructing, upgrading, modernizing, financing and managing of the Indira Gandhi International Airport, New Delhi ( IGI Airport''). DIAL took over the operations of the IGI Airport from AAI and therefore was empowered under the provisions of the agreement to exercise powers under Sec. 12A(4) of the AAI Act to exercise AAI's statutory powers under the Regulations framed in 2003, with regard to levy of demurrages charges at the IGI Airport.

(3.) On 17.03.2009, the Central Board of Excise and Custom ( CBEC ), exercising its powers under Sec. 141(2) read with Sec. 157 of the Customs Act, notified the Cargo Regulations, which contained the impugned regulation. The petitioner executed a Concession Agreement dated 24.08.2009 with Celibi Delhi Cargo Terminal Management India Pvt. Ltd. (Proforma fourth respondent, hereafter Celibi ), which enabled it to upgrade, modernize, finance, operate, maintain and manage the cargo terminal at IGI Airport. Thereafter, the Commissioner of Customs started issuing directions to DIAL and Celibi, to waive demurrage charges in accordance with the impugned regulation. These directions were not complied with; consequently the third respondent issued show cause notices as to why the impugned regulations were not complied with and as to why action should not be initiated against the petitioner and Celibi.