Duties specified in the Schedules to be levied

Related judgements & precedents

These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.

1. Chairman, Cochin Port Trust vs Seahorse Ship Agencies Pvt. Ltd.

   Supreme Court of India 05 Aug 2020 Binding precedent for all courts in India; Supreme Court judgment establishing a Reportable (2020) 5 SCC 1

   Court's Decision & Legal Precedent

   After the Port Trust takes charge of imported goods and issues a receipt therefor, liability for payment of storage charges and demurrage shifts exclusively from the steamer agent (who may remain liable only for unloading services up to custody point) to the owner of the goods, which may be the consignor, consignee, importer, or their agents. The passing of title in goods to the consignee, the endorsement of the bill of lading by the steamer agent, and whether delivery order is issued are all immaterial to determining demurrage liability post-custody. The steamer agent ceases all liability once goods are taken into Port custody as the statutory bailment relationship established between Port (as bailee) and shipowner (as bailor) is discharged by section 42(7) when receipt is given. Containers, being receptacles for goods and subject to return rather than consumption, are not themselves imported goods subject to demurrage in the same manner; demurrage ultimately charges against the cargo owner. Port Trust must exercise its discretion under sections 61-62 reasonably and within reasonable time (ordinarily four months) as required by Article 14 of the Constitution.

   On this section: Rules for classification of containers; differentiation between containers suitable for long-term use (classified with goods) and repetitive use (not classified with goods)

   Read the full order on eCourts India

2. Chairman, Cochin Port Trust vs Greenways Shipng. Ags. Pvt. Ltd.

   Supreme Court of India 05 Aug 2020 Binding (Supreme Court) Reportable (2020) 8 SCC 1

   Court's Decision & Legal Precedent

   After The Point Of Time That The Port Trust Takes Charge Of The Goods And Issues A Receipt Therefor, And Thereafter Stores The Goods In A Place Belonging To It, Storage And Demurrage Charges Cannot Be To The Account Of The Vessel Or An Agent Of The Vessel. Until The Stage Of Landing And Removal To A Place Of Storage, The Steamer's Agent Or The Vessel Itself May Be Made Liable For Rates Payable By The Vessel For Services Performed To The Vessel. Post Landing And Removal To A Place Of Storage, Detention Charges For Goods That Are Stored, And Demurrage Payable Thereon, It Is Only The Owner Of The Goods Or Other Persons Entitled To The Goods (Who May Be Beneficially Entitled As Well) That The Port Trust Has To Look To For Payment Of Storage Or Demurrage Charges. A Steamer Agent Can Only Be Made Liable For Storage Charges Until Such Time That The Bill Of Lading Has Not Been Endorsed Or Delivery Order Has Not Been Issued By The Steamer Agent.

   On this section: Classification Rules Differentiating Containers For Long-Term Use From Those Suitable For Repetitive Use; Supports Conclusion That Reusable Containers Are Not 'Goods'

   Read the full order on eCourts India

3. Union of India vs G. S. Chatha Rice Mills

   Supreme Court of India 23 Sep 2020 Binding (SC) Reportable (2020) 16 SCC 692 (Param Industries reference); Reportable

   Court's Decision & Legal Precedent

   A notification issued under Section 8A of the Customs Tariff Act 1975 increasing import duty takes effect prospectively from the time it is published in the e-Gazette, not from the commencement of the day on which it is issued. The rate of duty applicable to imported goods entered for home consumption is determined with reference to the date and time of presentation of the bill of entry under Section 15 of the Customs Act 1962 read with Regulation 4(2) of the Bill of Entry Regulations 2018. Bills of entry presented before the notification is published in the e-Gazette are assessed at the rate of duty in force at the time of their presentation. Subordinate legislation issued under Section 8A cannot have retrospective effect unless the parent statute expressly or by necessary implication authorizes it. The General Clauses Act 1897 Section 5(3) does not apply to delegated legislation. In the electronic age, the precise time of publication of notifications in e-gazettes and the precise time of filing of bills of entry on the customs automated system are legally significant for determining the applicable rate of duty.

   On this section: Specifies that rates of customs duty are those provided in the First and Second Schedules

   Read the full order on eCourts India

4. Chairman Cochin Port Trust vs Cma Cgm Agencies India Pvt. LTD

   Supreme Court of India 05 Aug 2020 Binding (Supreme Court of India) - Landmark Decision Reportable (2018) 4 SCC 592 [Reference Order dated 07-03-2018]; (2020) 10 SCC 1 [Main Judgment dated 05-08-2020]

   Court's Decision & Legal Precedent

   After a Port Trust takes charge of imported goods from a vessel and issues a receipt therefor, the Port Trust becomes the bailee of those goods. Demurrage and storage charges accruing thereafter for goods stored in the Port's premises are payable by the importer, owner, consignee or other person beneficially entitled to the goods, and NOT by the steamer agent or ship-owner. However, charges for services rendered at the time of landing of goods or their removal from the vessel to the Port's storage premises (such as unloading charges and labour dues) may be charged against the steamer agent as services rendered to the vessel. The time at which title in goods passes to the consignee is irrelevant in determining such liability. The Port Trust must act reasonably in exercising its discretion to sell goods under Sections 61-62 of the MPT Act and must attempt to sell goods within reasonable time from when it assumes custody, with four months from landing being the outer limit, failing which it must provide written explanation justifiable by the courts. Containers are receptacles for goods, not imported goods themselves, and must be destuffed and returned to the steamer agent or container owner within a short feasible period.

   On this section: Customs duties determined by tariff classifications; containers and goods classified separately reflecting that containers are not imported goods themselves

   Read the full order on eCourts India

5. Hillman Woolen CO vs Union of India

   Supreme Court of India 24 Aug 2016 Binding (SC) - Landmark Precedent On Treaty Implementation And Statutory Notific Reportable

   Court's Decision & Legal Precedent

   An exemption notification under the Customs Act that enlarges the scope of an earlier exemption notification by including a new duty introduced after the original notification cannot be treated as retrospective merely because the underlying international treaty predates the new duty. A notification is clarificatory only if the earlier notification remotely suggested the exemption. When a new duty is introduced by statute after a treaty is signed, a subsequent notification granting exemption from that new duty is prospective in operation and does not retroactively apply to periods before the notifying act, unless the notification explicitly provides for retrospectivity or there is clear evidence of rectification of a proven mistake or omission. The Customs Act, 1962 and the Customs Tariff Act, 1975 are independent statutes with independent duty regimes; basic customs duty, additional duty equal to excise duty, and special additional duty are three distinct levies under Sections 2, 3 and 3A respectively.

   On this section: Establishes that rates of customs duties are specified in the First and Second Schedules to the Tariff Act

   Read the full order on eCourts India

The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.