COMMISSIONER OF CUSTOMS Vs. SUJANA STEELS LTD

JUDGEMENT

(1.) Heard the learned Senior Standing Counsel for Government of India. When the writ petition was heard, the learned Standing Counsel for Government of India had vehemently argued that the Customs authorities were under no obligation to reimburse the storage and demurrage charges. On a careful consideration and necessary reflection and having due regard to the settled position in law, we rejected that contention and we observed as under:

(2.) Nevertheless, the learned StandingCounsel for Government of India would contend before us that the functions discharged by the Customs Department being quasi-judicial ill nature, the postulates of Art.14 of the Constitution cannot be attracted even if detention of goods was unlawful and the liability to pay demurrage and storage charges cannot be placed on or passed on to the Customs Department under no circumstance. Learned Senior Standing Counsel placed reliance on the decisions of the Apex Court Trustees of Board of Madras vs. Nagavedu Lungi & Co. and others and International Airports Authority of India vs. Grand Slam International. This contention has to be noticed only to be rejected. It is trite law that the postulates of Article 14, viz., non-arbitrariness, reasonableness and fairness in action flowing from Art.14 should undoubtedly guide and correct the actions of the Customs Department too. Their actions are not beyond the pale of Art.14 scrutiny.

(3.) We are at a loss to understand how the above two judgments of the Supreme Court are of any help to the Review Petitioner. In Trustees of Board of Madras case (1 supra), the Supreme Court had to consider the question whether the trial Court was justified in dismissing the suit filed by the Trustees of Board of Madras (1 supra) against the defendants therein for recovery of demurrage charges and other incidental charges. The Supreme Court after referring to and considering the dictum in International Airports Authority of India case (2 supra), rightly found fault with the trial Court and the High Court in dismissing the suit, and decreed the suit.