Modern Line Vs Assistant Commissioner of Customs (Madras High Court)
Madras High Court has dismissed a writ petition filed by Modern Line, seeking a waiver certificate for demurrage and detention charges on imported goods. The court upheld the Assistant Commissioner of Customs’ decision, which rejected the waiver request on the grounds that no seizure, detention, or confiscation order had been issued by Customs Authorities concerning the goods.
Modern Line contended that the demurrage charges were incurred solely because Customs Authorities initially refused their request to re-export the goods. The petitioner explained that the original importer failed to take delivery of the goods as the related project did not proceed, leading Modern Line to seek re-export.
The High Court noted that in an earlier writ petition (W.P.Nos.727 and 733 of 2024), filed by Modern Line, the court had, on June 7, 2024, directed the Customs Department to consider the re-export request. In that prior order, the court also found that a circular relied upon by Customs for rejecting the re-export request was not applicable to Modern Line’s case. Despite this, Modern Line argued that the demurrage charges were a direct consequence of the Customs Authorities’ actions.
However, the Assistant Commissioner of Customs maintained that there was no liability to reimburse these charges, a position also reflected in the counter affidavit filed before the court.
