Sunrise Movers And Carriers LLP And Anr. vs. Union Of INDIA And Ors.

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WPA/7598/2025HC CalcuttaGSTCNR WBCHCA015204202509 April 2025Bench: HON'BLE JUSTICE AMRITA SINHA3 pages
AI SummaryRemanded

Facts

The petitioners, Sunrise Movers and Carriers LLP & Anr., are challenging a communication dated March 26, 2025, issued by the Senior Divisional Commercial Manager, Eastern Railway, Asansol. This communication directed the realization of Rs.9,87,660/- plus GST from the petitioners on account of demurrage charges. The petitioners contend they are not liable for these charges and that a sum of Rs.10,37,043/- mistakenly paid by them is being sought for refund. While the petitioners had submitted representations requesting a refund and asserting non-liability for demurrage and wharfage charges, the impugned order for realization was passed. The petitioners claim their business has been significantly impacted, coming to a standstill due to this communication.

Held

The Court did not decide the writ petition on merits. Instead, it chose to revert the matter to the respondent authority for disposal of the petitioners' representations. The General Manager (Operation), Eastern Railway, the second respondent, has been directed to consider the petitioners' representations in accordance with the law. This consideration must include giving the petitioners a reasonable opportunity of hearing to defend their stand. The decision is to be made at the earliest, positively within a fortnight from the date of the order's communication. A reasoned decision is to be passed and communicated to the petitioners immediately thereafter. The petitioners' counsel is directed to forward the representations and supporting documents to the respondent. The issue of the petitioners' liability for demurrage charges and the refund of the mistakenly paid amount remains undecided by the Court.

Key Issues

1. Whether the petitioners are liable to pay the demurrage charges amounting to Rs.9,87,660/- + GST, as directed by the Senior Divisional Commercial Manager, Eastern Railway, Asansol. Petitioner's Arguments: The petitioners argue that they are not liable to pay the demurrage charges. They claim to have mistakenly paid Rs.10,37,043/- which they are seeking to have refunded. They assert that their representations challenging the liability were pending consideration when the impugned order for realization was passed. The petitioners also submitted that the impugned communication has brought their business to a standstill. Revenue's Arguments: The judgment does not record any specific arguments made by the respondents (Union of India & Ors.).

AI-generated summary — verify with the full judgment below

09-04-2025 Item No.4 Subrata Bhattacharyya AR(C) IN THE HIGH COURT AT CALCUTTA Constitutional Writ Juri iction Appellate Side WPA No.7598 of 2025 Sunrise Movers and Carriers LLP & Anr. -vs- Union of India & Ors. Mr. Sudhasatva Banerjee Mr. Aurin Chakraborty Mr. Amal Saha Mr. Ireah Paul Mr. Shivam Debnath …for the petitioners Mr. Shiv Chandra Prasad …for the respondents

1.

The petitioners are aggrieved by the communication made by the Senior Divisional Commercial Manager, Eastern Railway, Asansol dated March 26, 2025 addressed to the Senior Divisional Commercial Manager, South Eastern Railway, Chakradharpur (Annexure P10, p.37) directing the addressee to realize the sum of Rs.9,87,660/- + GST from the petitioners on account of demurrage charges.

2.

According to the learned counsel for the petitioners, the petitioners are not liable to pay demurrage charges. The sum of Rs.10,37,043/- which was mistakenly paid by the petitioners has been sought to be refunded.

3.

During the pendency of the representations filed by the petitioners requesting refund of the charges clearly mentioning that the petitioners will not be liable for payment of the demurrage and wharfage charges, the Senior Divisional Commercial Manager, Eastern Railway, Asansol Division has passed the impugned order for realization of the said amount.

4.

It appears that the grievance of the petitioner is pending consideration before the respondent authority. Instead of deciding the writ petition on merits as this stage, the Court intends to revert the matter to the authority for disposal of the petitioner’s representation.

5.

It has been submitted that because of the impugned communication the petitioners’ business has come to a standstill. The instant writ petition is, accordingly, disposed of by directing the General Manager (Operation), Eastern Railway, the second respondent herein, to consider the petitioners’ representations in accordance with law after giving reasonable opportunity of hearing to the petitioners to defend their stand at the earliest, but positively within a fortnight from the date of communication of this order. A reasoned decision shall be passed and communicated to the petitioners immediately thereafter.

6.

Learned advocate for the petitioners is directed to forward the subject representations along with all supporting documents to the aforesaid respondent at the time of communicating the order of the Court.

7.

All parties are to act on the server copy of this order duly downloaded from the official website of this court.

8.

Certified copy of this order, if applied for, shall be made available to the parties. [Amrita Sinha, J] 2

3

Reproduced from the public record of the Calcutta High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.