Due to movement restrictions imposed during the lockdown, importers were unable to clear consignments arrived at airports and attracting the levy of demurrage by airport authorities. Acknowledging the practical impossibility of clearing the goods, the Ministry of Civil Aviation issued Order dated April 1, 2020 granting concession from levy of demurrage to the extent of 50 percent on imported goods, which arrived in India on or after March 20, 2020. However, in terms of the Order, the concession could be availed only if the imported goods were cleared on or before April 16, 2020.

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The Ministry of Home Affairs vide its Order dated April 15, 2020, had lifted the restrictions on inter-state and intra-state transportation of non-essential goods. However, in reality such orders were not implemented at ground level and state government authorities prohibited movement of goods carriers containing non-essential goods across state borders. Ministry of Civil Aviation despite being well aware of the actual scenario, has not extended the cut-off date of April 16, 2020, which has essentially led to the denial of the concession to a significant majority.

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In this article, we have assessed the question of importer's liability to pay demurrage for failure to clear the imported goods during the operation of lockdown and the constitutionality of the ‘cut off’ date stipulated in the Ministry of Civil Aviation’s Order.