Court dismisses Apeejay Infra Logistics' plea challenging demand for cost recovery charges, emphasizes compliance with Customs Act provisions.
In a significant judgment, the Calcutta High Court has dismissed the writ petition filed by Apeejay Infra Logistics Pvt. Ltd., challenging the imposition of cost recovery charges by the Customs authorities. The court, presided over by Justice Rai Chattopadhyay, ruled in favor of the Union of India, affirming that the petitioner's liability to bear these charges is well-founded under the Customs Act, 1962, and related regulations.
Apeejay Infra Logistics, the operator of the Container Freight Station (CFS) at Haldia/Kolkata port, contested the demands made by the Customs Department, arguing that their liability was contingent upon the formal sanction and actual deployment of Customs officers. The company sought to overturn the demand notices dated April 4, 2016, July 2, 2020, and November 10, 2020, alongside a restriction letter dated August 12, 2020, which suspended movement of incoming cargo due to outstanding dues.
The court, however, dismissed these contentions, emphasizing the petitioner's acceptance of regulatory conditions at the time of their appointment as custodian, which included the bearing of cost recovery charges. Justice Chattopadhyay highlighted that the petitioner's obligations were clear and unambiguous, as laid out in the initial public notice and the Handling of Cargo in Customs Areas Regulations, 2009.
The judgment noted that the regulatory framework does not predicate liability on the formal sanctioning of posts by the Department of Expenditure. Instead, it focuses on the practical deployment of officers, which was evidenced by operational records. The court further pointed out that the petitioner's attempts to seek waiver and previous payments made under these regulations contradicted their current claim of non-liability.
Moreover, the court found that the petitioner's actions were inconsistent with principles of fairness and equity, as they had previously acknowledged their liability by applying for a waiver. The judgment also referenced the doctrine of substantial compliance, indicating that the petitioner's focus on technical formalities overlooked the practical and operational realities.
This decision underscores the judiciary's stance on upholding fiscal and regulatory compliance, particularly in specialized statutory frameworks. The court's refusal to interfere with administrative decisions, absent clear arbitrariness or jurisdictional errors, reinforces the limited scope of judicial review in such matters.
Bottom line:-
Container Freight Station (CFS) operator's liability to bear cost recovery charges for Customs officers cannot be evaded on grounds of administrative modalities regarding cadre sanction.
Statutory provision(s): Customs Act, 1962 Section 45(1), Handling of Cargo in Customs Areas Regulations, 2009 Regulation 6(1)(o)
Appejay Infra Logistics Pvt. Ltd. v. Union of India, (Calcutta) : Law Finder Doc id # 2899760
