CESTAT Mumbai upholds suspension of NVOCC registration for failure to comply with customs directives on detention and demurrage waivers.
CESTAT Backs Suspension of NVOCC Registration
CESTAT Mumbai upheld the suspension of Aegon Shipping’s Non-Vessel Operating Common Carrier (NVOCC) registration due to non-compliance with customs directions regarding the waiver of detention and demurrage charges. The authority had issued specific orders to grant waivers in certain cases, which were not followed.
The Tribunal observed that adherence to regulatory directives is mandatory and that failure to comply undermines customs control and fairness in cargo handling. The suspension was deemed proportionate to the breach.
Practitioner Takeaway: NVOCCs and logistics operators must strictly follow administrative orders issued by customs. Disregarding such directives may lead to registration consequences irrespective of commercial agreements.