Order Date – 06 January 2023

Parties: M/s Rugs Rural Vs The Principal Commissioner of Customs

Facts –

• The Petitioner, M/s Rugs Rural, imported Chinese Knotted Woolen Carpets which were detained by the respondent on 06.01.2021. The request for the release of the consignment was allowed by the court without loss of time within one week of receipt of copy of the order.
• The consignment had not been released despite the specific direction of this Court to release the goods within a week and also the petitioner forwarded the communication of the respondent no.3 to the respondent no.5 and requested the respondent no.5 to waive the demurrage and issue the delivery order through several e-mails, but it denied the request and insisted on the payment of the demurrage charges.
• Hence, the petitioner has preferred the present petition.

Issue –

• Whether the denial of release of consignment and insisting payment of demurrage charges are in order?

Order –

• The divisional bench of Hon’ble High Court observed that the consignment has not been released till date as the respondent is demanding the demurrage charges. The strong objection on the part of the respondent is that unless the container detention charges are paid, he cannot be permitted to lift the goods as his client has a contractual lien. Since the respondent was not a party in the previous petition, it was not heard while directing the release on 07.01.2022.
• The detention of the goods without the seizure under Section 110 of the Act was not found sustainable under the law and the respondent had acted as if it was powerless and it needed to continue to use this tactic of detaining the goods till the petitioner actually attends to the proceedings of inquiry/investigation. It is worth noting that now that inquiry is completed and there has been a cooperation of the petitioner as well.
• Therefore, on the issue of detention charges, the order of the CESTAT shall govern the parties as it would also require the authority concerned to enter into the merits of the facts.
• Hence the petition is partly allowed. The respondents shall release the consignment imported dated 06.08.2021 on the petitioner furnishing the bank guarantee for a period of six (06) months.