In Brief
The Supreme Court allowed appeals by the Union of India and Mumbai Port Trust against a High Court judgment that had directed the Port Trust to waive demurrage charges and the DRI/Customs to pay detention charges to importers whose goods were detained at the port. The Court held that a Major Port Trust's statutory power to levy demurrage charges under the Major Port Trusts Act cannot be curtailed by the Customs Act or subordinate regulations. An importer remains liable for demurrage even when goods are wrongfully detained by Customs, unless the detention is proven to be absolutely mala fide or a gross abuse of power. The Court set aside the High Court's judgment, holding the importers liable for demurrage and detention charges, though noting they could approach the Port Trust for exemption under statutory provisions if warranted.
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