EXPRESS CLEARING AGENCY Vs. CHENNAI PORT TRUST

JUDGEMENT

(1.) The petitioner has filed the above Writ Petition to issue a writ of mandamus to direct the respondents to release the cargo stored in E1 Shed pursuant to the bill of entry dated 03.12.2015 without insisting for any payment towards demurrage charges and to direct the respondents to refund the sum of Rs.9,39,867.53p erroneously paid by the petitioner towards demurrage charges.

(2.) According to the petitioner, they were appointed as Agent for clearing the cargo Muriate of Potash imported by M/s.Indian Potash Limited, Chennai, a Government of India Limited. The said importer has imported 13,050 metric tons of Muriate of Potash from Israel through Vessel MV Euro Sky. The petitioner has filed the bill of entry for clearing the cargo under the Bill of Exchange dated

(3.) 12.2015 and paid the necessary wharfage charges. The Customs Department, by their Examination Order dated 07.12.2015, had released 80% of the cargo and retained 20% on site for verifying the description with all the original bank attested documents and to verify the analytical certificate/technical literature. The samples were ordered to be drawn by the Fertilizer Control Laboratory for testing the standards as per the Fertilizer Control Order. It was further directed that the remaining 20% of the cargo would be released after the receipt of the test report. The cargo was off -loaded from the Vessel and stored in the E1 Shed on transit basis in the Port area. Pursuant to the said order of the Customs Department, the petitioner had cleared 80% of the cargo. The remaining 20% of the cargo had to be detained by the petitioner in the transit shed on account of the direction issued by the Customs Department. 3.In terms of Chapter IV of the Scale of Rates, demurrage charges is chargeable on goods left at Chennai Port Trust's transit sheds or yards beyond the expiry of free days. Clause 9(a) provides that the first 45 days will be free days for the period of detention during which the goods were detained by the Commissioner of Customs for the purpose of special examination involving analytical or technical tests other than the ordinary process of appraisement and certified by the Commissioner of Customs to be attributable to any fault or negligence on the part of the importers.