Friday, November 04, 2016

Delhi HC bars DIAL from levying demurrage at IGI airport

Delhi International Airport Limited (DIAL) would be disallowed from levying demurrage fees at the Indira Gandhi International (IGI) Airport said the Delhi High Court on Thursday.

The high court was listening to a plea challenging regulation 6(1)(1) of the Handling of Cargo in Customs Areas Regulations 2009, which prohibits operators from charging rent for confiscated goods.

DIAL had petitioned the court after receiving a communication from the commissioner of customs, while executing a concession agreement with Celebi Delhi Cargo Terminal Management India for operation of a cargo terminal at the IGI airport, directing them to waive demurrage charges in accordance with the Central Board of Excise and Customs (CBEC) regulations, notified on March 17, 2009.

The airport operator had opposed the regulation in question, by contending that demurrage fees were chargeable under the Airports Authority of India Act 1994 and as such, could not be overridden by regulations subsequently framed under the Customs Act 1962. DIAL had also argued that the notification arbitrarily placed a blanket ban on the charge of demurrage in cases of detention, seizure or confiscation of goods by customs authorities.
04/11/16 Sayan Ghosal/Business Standard