Legal principle

A Detention Certificate issued by Customs is only an eligibility certificate for claiming the benefit under Regulation 6(1)(l) of the Handling of Cargo in Customs Areas Regulations, 2009 and confers no right to refund until disputed facts with the Customs Cargo Service Provider are adjudicated by the competent forum.

Court decision

The Court held all the writ petitions were maintainable, but nonetheless dismissed them with no costs: the petitioners had not established any right to the relief sought, because the Detention Certificate is merely an eligibility certificate for claiming the benefit under Regulation 6(1)(l) and does not itself confer a right to refund without adjudication of the disputed facts and contract terms before the competent forum.

Facts

The petitioners (Wardha Solar, Adani Enterprises and Parampujya Solar Enerty) imported solar panels during 2017-2018 through Chennai Customs. The Commissioner of Customs (CH-II), Chennai issued a Detention Certificate dated 05.06.2018 in respect of the detained goods. The petitioners deposited rent/demurrage-type amounts with the third respondents, Customs Cargo Service Providers (RCL Agencies and Ennore Cargo Container Terminal), at the time of clearance, and sought refund relying on the Detention Certificate. Their letter dated 11.03.2020 to the Customs Department for action against the Service Provider was not acted upon, and the Service Provider (having replied on 12.02.2020 to a legal notice dated 10.12.2019) refused the refund, leading to these writ petitions for mandamus.

Key provisions

• Regulation 6(1)(l), Handling of Cargo in Customs Areas Regulations, 2009 — Responsibilities of Customs Cargo Service provider
• Regulation 3, Handling of Cargo in Customs Areas Regulations, 2009 — Application