In Brief
Continental Carbon India imported carbon black feed stock which customs authorities improperly detained as allegedly hazardous goods. After eventual clearance by the Ministry of Environment and Forest, the customs cargo service provider demanded ₹7.67 crores in demurrage charges. The High Court found the detention unlawful and held no demurrage was payable. The Supreme Court extended relief from demurrage to the date of the High Court judgment (not the earlier assessment order), reasoning that the importer could not clear goods during pending litigation without interim relief. As the goods had become commercially worthless, the Court exempted all demurrage charges while allowing the service provider to auction the goods and retain proceeds."
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