International Lease Finance Corporation v. UOI & Ors.

CUSTOMS ACT, 1962

--Restrictions on custody and removal of imported goods --Refund of demurrage amountValidity----The fee or consideration payable are determined by the duration or period for which warehousing is necessary, the kind of storage provided including the safety and security to the goods. Unless the rules or relevant policy clearly mandate waiver from such services, courts could not issue directions to such service providers. In this case, CELEBI relied on Clause 10.1.10 (b) to say demurrage waiver was precluded. --Issue arose before this court that whether CELEBI can justly withhold the amounts paid and refuse to refund them to the ILFC, which claims that its action in importing the aircraft engine and exporting it was out of compulsion, even necessity, to safeguard its interests as property owner. Held: Supreme Court in the case of International Airports Authority v. Grand Slam International of India 1995 (77) E.L.T. 753 (SC) : 1995 TaxPub(EX) 530 ruled that section 45 did not affect International Airport Authority's right to collect charges from the importer even if the detention were to result in no revenue. The fee or consideration payable are determined by the duration or period for which warehousing is necessary, the kind of storage provided including the safety and security to the goods. Unless the rules or relevant policy clearly mandate waiver from such services, courts could not issue directions to such service providers. In this case, CELEBI relied on Clause 10.1.10 (b) to say demurrage waiver was precluded.