Customs cargo service provider not entitled to charge any rent or demurrage on goods seized or detained or confiscated by Superintendent of Customs

Green Gold Timbers Pvt. Ltd. Vs Commissioner of Customs (Gujarat High Court)

The short point that falls for our consideration is, whether the customs cargo service provider (respondent no.3 herein) is entitled to charge any rent or demurrage on the goods seized or detained or confiscated by the Superintendent of Customs or Appraiser or Inspector of Customs or Preventive Officer or Examining Officer, as the case may be.

The aforesaid issue is no longer res integra in view of a recent decision of the Bombay High Court in the case of Sahaj Impex vs. Balmer Lawrie & Co. Ltd. and another (Writ Petition No. 10492 of 2019 decided on 18^th January 2021), wherein the Bombay High Court observed that customs cargo service provider as defined in regulation No. 2(1)(b) of the Regulations, is not entitled in law to charge any rent or demurrage on the goods seized or detained or confiscated by the Superintendent of Customs or any other authority as referred to above.

This position seems to have been further clarified by the Commissioner of Customs (Export) by way of a public notice No. 26/2010 with the further clarification that the customs cargo service providers shall allow the goods on production of a certificate issued from the proper officer certifying such period of seizure or detention or confiscation without charging and collecting any rent or demurrage for such period.

FULL TEXT OF THE JUDGMENT/ORDER OF GUJARAT HIGH COURT

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