Legal principle

A Detention/Demurrage Waiver Certificate issued by Customs is merely an eligibility certificate for claiming the benefit of Regulation 6(1)(l) of the Handling of Cargo in Customs Areas Regulations, 2009, and does not by itself confer a right to refund from a private service provider without adjudication of the disputed facts and contract terms before the competent forum.

Court decision

The writ petition was dismissed with no costs. The Madras High Court held that the Detention Certificate issued by the Customs authorities is to be construed only as an eligibility certificate for claiming the benefit under Regulation 6(1)(l) of the Handling of Cargo in Customs Areas Regulations, 2009; it does not confer any right to claim refund without adjudication of the disputed facts and circumstances with reference to the terms and conditions of the agreement or contract, which cannot be done in a writ proceeding. The petitioner was left at liberty to initiate appropriate action and claim refund before the appropriate forum.

Facts

M/s. Isha Exim, a Kolkata-based importer, imported 27,000 kg (net) of unflavoured supari (betelnut) from PT.V J&J Internasional, Indonesia, under an ASEAN–India FTA Certificate of Origin, filing a Bill of Entry dated 02.08.2017 at Chennai Port classifying the goods under CTH 21069030. Acting on intelligence that the goods were misclassified, officers of the Directorate of Revenue Intelligence examined and detained the goods despite out of charge having been accorded, and the goods were released only pursuant to the High Court's order in W.P.No.22114 of 2017 dated 12.09.2017. The petitioner furnished Provisional Duty Bond and Test Bond, and the Deputy Commissioner of Customs issued a Detention/Demurrage Waiver Certificate dated 27.10.2017 under Regulation 6(1)(l) of the Handling of Cargo in Customs Areas Regulations, 2009. Despite that certificate, M/s. APL (India) Pvt. Ltd., the Customs Cargo Service Provider, collected Rs.20,57,526.72 as container detention charges, prompting the petitioner to seek a writ of mandamus for 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 7, Customs Act, 1962 — Appointment of customs ports, airports
• 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