Legal principle

A Detention Certificate issued by Customs under Regulation 6(1)(l) of the Handling of Cargo in Customs Areas Regulations, 2009 is merely an eligibility certificate — it does not by itself confer a right to refund of demurrage or container detention charges, which must be pursued before the competent forum after adjudication of disputes with the service provider.

Court decision

The writ petition was dismissed with no costs: the Detention Certificate issued under Regulation 6(1)(l) is to be construed only as an eligibility certificate for claiming the benefit of that provision and does not confer a right to refund; since refund is bound up with disputed facts and the contract between the importer and the private service provider, the petitioner was left at liberty to claim refund before the appropriate forum by following the prescribed procedure.

Facts

M/s.R.M.Trading, a Chennai-based importer, imported 152.942 MT of goods declared as MS Defective Temper Mixed Sheets above 4.5 mm thickness from Nu Steels Private Limited, Singapore, in 6 x 20' containers and filed Bill of Entry No.8714607 dated 28.02.2017 at Chennai port. The SIIB detained the goods on 13.03.2017 for suspected misdeclaration of weight and description; after a Chartered Engineer certified the goods were as declared (value around USD 550 per MT), the petitioner discharged duty of Rs.18,70,792 and obtained 'out of charge' on 09.05.2017, having been dispossessed of the goods from 28.02.2017 to 09.05.2017. On 09.05.2017 the 2nd respondent (Assistant Commissioner, SIIB) issued a Detention Certificate under Regulation 6(1)(l) of the Handling of Cargo in Customs Areas Regulations, 2009, informing the steamer agent/liner that no rent or demurrage is payable on goods under detention. The 3rd respondent steamer agent nevertheless collected Rs.38,99,383 as demurrage and container detention charges and refused to honour the certificate, leading the petitioner to seek a writ of mandamus for its refund.

Key provisions

• Regulation 6(1)(l), Handling of Cargo in Customs Areas Regulations, 2009 — Responsibilities of Customs Cargo Service provider
• Section 30, Customs Act, 1962 — Delivery of arrival manifest or import manifest or import report
• Section 158(2), Customs Act, 1962 — Provisions with respect to rules and regulations
• Regulation 3, Handling of Cargo in Customs Areas Regulations, 2009 — Application
• Section 30A, Customs Act, 1962 — Passenger and crew arrival manifest and passenger name record information
• Section 41A, Customs Act, 1962 — Passenger and crew departure manifest and passenger name record information
• Section 50, Customs Act, 1962 — Entry of goods for exportation
• Section 53, Customs Act, 1962 — Transit of certain goods without payment of duty
• Section 126, Customs Act, 1962 — On confiscation property to vest in Central Government
• Section 157, Customs Act, 1962 — General power to make regulations
• Section 46, Customs Act, 1962 — Entry of goods on importation
• Section 41, Customs Act, 1962 — Delivery of departure manifest or export manifest or export report