The Calcutta High Court ruled that a vested right accrues in favour of CWC to recover the rent.
Facts
The appellant had filed a writ petition praying for return of the interest amount which according to the appellant has been illegally collected in the name of rent, insurance and GST charges which are not payable by the appellant.
Submissions
Advocate Atish Dipankar Roy, appearing for the appellant, placed heavy reliance upon the communication from the Deputy Commissioner of Customs, Kolkata, to the Regional Manager of CWC informing him to release the goods as per guidelines under Regulation 6(l) of the Cargo Handling Rules in Customs Area 2009 (regulations).
Standing counsel appearing for DRI contended that the order-in-original passed by the adjudicating authority has been accepted in full by the appellant, consequently the detention and seizure of goods are valid and therefore the appellant is liable to pay the warehousing charges to CWC.
Decision
The division bench of The Acting Chief Justice T.S. Sivagnanam and Justice Hiranmay Bhattacharyya observed that on the date when the container was warehoused, the warehousing agencies namely CWC was entitled to demand rent. The amendment was made to the statutory provision with effect from 14.05.2016. Thus, on the date when the goods were entrusted to the custody of CWC, the law permitted CWC to demand and recover rent for the storage.
The bench viewed that it is in the nature of vested right conferred upon the warehousing agency to demand and collect rent.
The bench held that the appellant having accepted the order-in-original holding him guilty of violation of the terms and conditions of the advance license and the provisions of the Act and the goods having detained and kept in the custody of the warehouse from 2002, a vested right accrues in favour of CWC to recover the rent payable to them and therefore the demand made on the appellant by CWC, atleast up to the date when the provision was amended is valid and proper and the said amount already paid by the appellant need not be returned or refunded to the appellant.
Case title: Mumtaz Mehboob Munshi V/S Commissioner Of Customs (Port), Kolkata And Others
Citation: A.P.O. NO. 28 OF 2023 I.A. NO. G.A./01/2023
