Order date – 4 January 2023

Parties: Caprico International PTE Ltd. Vs Commissioner of Customs and ANR.

Facts – 

• The Petitioner, Caprico International PTE Ltd. a Singapore based company, which had entered into a sales contract on 22nd December, 2021 for Discarded and Non-Serviceable Motor Scrap (92% heavy moulding scrap) (hereinafter referred as the “Goods”) with one M/s Earth Wire Private Ltd – the Importer.
• After receipt of the goods, the importer M/s Earth Wire did not pay the customs duty - hence, the goods were not cleared. Apart from amount paid in advance, the importer paid no other amount after the goods were shipped.
• The Petitioner seeking permission to release the goods so that the Petitioner can reduce the losses, which were being caused to. However, the customs authority did not permit the said release in favour of the Petitioner, hence the present petition has been filed.

Issue –

• Whether the Petitioner is liable to demurrage charges ? 

Order –

• The Court observed that the Petitioner is willing to bear the customs duty and interest. However, the point to contest is the detention/demurrage charges between the parties.
• The issue of payment of demurrage has been considered by several decisions of the Supreme Court and of this Court. On the question of demurrage, the Supreme Court in International Airports Authority of India ETC.  v. M/s. Grand Slam International & Om ETC., 1995 SCC (3) 151, held that the demurrage would be liable to be charged even if there was fault on the part of the customs authority.
• Between September 2022 to December, 2022 there seems to have been a complete lull between the parties and it is unclear what the importer intended to do with the goods. The goods continued to lie with the customs authority. However, there cannot be any explanation as to why the Petitioner waited so long, leading to incurring of demurrage.
• Insofar as the detention/demurrage charges are concerned, since there is no explanation for the delay between September 2022 to December, 2022 and the first representation itself was made on 3rd December, 2022, the Petitioner would be liable to pay 50% of the detention/demurrage charges payable till 3rd December, 2022 as also demurrage charges for the period from 3rd December, 2022 till date.
• The present petition, along with all pending applications, is disposed of in the above terms.