Content Provider | Supreme Court of India |
---|---|
e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Goods detained by Customs House at Port Major Port Trusts Act |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Act(s) Referred | Major Port Trust Act, 1963 (38 of 1963) |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Disposed Off |
Headnote | Major Port Trusts Act, 1963: Sections 5,48 to 65. Bombay ~ Customs House Public Notice No. 111 dated July 29, 1985; Paragraph 2(a). Goods detained levied by Customs House at Port - Clearance of Demurrage charges levied by Port Trust-Necessity for Court to ensure payment.The Major Port Trusts Act, 1963 empowers by cl.(d) of s.48 the Board of Trustees, constituted under that Act, to impose rates in respect of wharfage, storage or demurrage or goods at the port. Section53 of the Act empowers and Board in special cases to exempt either wholly or partially any goods from payment of any rate or of any charge leviable in respect thereof or remit the whole or any portion of such rate or charge so levied. The Port Trust had in consultation with the Customs authorities provided for grant of concession in the matter of payment of demurrage charges on the issue of detention certificate by the latter. Paragraph 2(a) of the Bombay Customs House Public Notice No. 111 dated 29th July, 1985 provides for a regular detention certificate to be issued where the goods are detained by the Customs House for the bona fide operation of import control formalities. A dispute arose between the 1st respondent and the Customs authorities with regard to the basic customs duty payable on the goods imported by the former. By an interim order passed in a writ petition filed by the respondent, the High Court directed the Customs authorities to allow clearance of the consignments on respondent furnishing a bank guarantee in respect of the disputed amount of duty payable, in favour of the Collector of Customs. The respondent, however, failed to clear the goods from the Port. Since the consignments were incurring demurrage the respondent filed another writ petition seeking a direction to the Customs authorities to issue detention certificates, which was allowed by the Court on the 1st A respondent giving an undertaking that it would pay the demurrage amount if it failed in the earlier writ petition. The Customs authorities were, thus, obliged to issue the detention certificates. The Port Trust was not made party to any of the writ petitions. It refused to honour the detention certificates and to grant remission of demurrage unless the respondent gave a bank guarantee to the extent of 80 per cent of the fees claimed. The High Court, however, by an interim order, in the writ petition filed against the Port Trust, directed the clearance of goods without payment of demurrage and without insisting on the bank guarantee. The appeals filed against the aforesaid orders were summarily dismissed by the High Court in the appeals by special leave, it was contended for the appellant Port Trust, that the High Court should not have directed the Customs authorities to issue detention certificates without the Port Trust being made a party to the writ petition and in any event without passing an order duly providing for the payment of the wharfage and demurrage charges due to the Port Trust in the event of the first respondent failing in its contention, and that the High Court had committed an error in directing the first respondent to give a bank guarantee only in respect of the customs duty payable and not malting a similar order with regard to wharf age and demurrage charges payable to the Port Trust. |
Judge | Honble Mr. Justice E.S. Venkataramiah |
Neutral Citation | 1987 INSC 4 |
Petitioner | Board Of Trustees Of The Port Of Bombay |
Respondent | Jai Hind Oil Mills Company And Others |
SCR | [1987] 1 S.C.R. 932 |
Judgement Date | 1987-01-09 |
Case Number | 4483 |
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