M/S RASIKLAL KANTILAL & CO. vs BOARD OF TRUSTEE OF PORT OF BOMBAY

The Supreme Court addressed the issue of demurrage charges under the Customs Act, specifically examining the applicability of remission guidelines issued by the Government of India. The Court held that the petitioner, having acted as a third party in the import transaction, was entitled to remission of demurrage charges for the period during which the goods were detained by Customs for ITC formalities, as per the guidelines. The Court emphasized that the timing of the application for remission should not disadvantage the petitioner, leading to a favorable outcome for the appellant.