2018 (4) TMI 858 - HC - Customs

Court orders respondent to issue valid waiver certificate for detention and demurrage charges until goods released.

M/s. Priyanka Enterprises Versus The Joint Commissioner of Customs (Group 1), The Deputy Commissioner of Customs (Group 1)

The court ruled in favor of the petitioner, emphasizing that the waiver certificate for detention and demurrage charges should be valid until the release ... Release of detained goods - waiver of detention and demurrage charges - Held that: - the petitioner is entitled to issuance of certificate for waiver of detention and demurrage till it is released. In fact, such order has been passed by the Customs Authority and one such order dated 12.10.2017 passed by the Assistant Commissioner (DIU), Chennai -3 in favour of M/s. Far East Trading Establishment shows that the certificate has been given till the time of release. Since the direction was issued by this Court for grant of release subject to conditions, the petitioner is entitled to issuance of certificate for waiver of detention and demurrage charge till the date of release of the goods i.e., 22.12.2017. Petition allowed by way of remand. Issues:1. Validity of waiver certificate for detention and demurrage charges till the release of goods.2. Interpretation of court directions for issuance of waiver certificate.3. Compliance with court orders by Customs Authority regarding detention and demurrage charges.Analysis:The judgment addresses the issue of the validity of a waiver certificate for detention and demurrage charges until the release of goods. Initially, the court had directed the petitioner to pay a differential duty and provided conditions for the release of goods. Subsequently, the respondent issued a certificate for waiver of charges but limited its validity till a specific date, which the petitioner contested. The court examined previous orders by the Customs Authority, noting that certificates were typically valid until the release of goods. The court concluded that the petitioner should receive a waiver certificate until the actual release date of the goods, as per the court's original directions.Regarding the interpretation of court directions for the issuance of the waiver certificate, the judgment clarifies that the petitioner should be entitled to the waiver of detention and demurrage charges until the goods are released. The court emphasized that the Customs Authority had previously issued certificates valid until the release of goods, aligning with the court's intent. Therefore, the court directed the respondent to issue a waiver certificate covering charges until the release date of the goods, in line with the court's directions and standard practice.Furthermore, the judgment evaluates the compliance of the Customs Authority with court orders concerning detention and demurrage charges. The court found that the respondent's decision to limit the waiver certificate's validity was not in line with the court's directions and past practices of the Customs Authority. As a result, the court partially allowed the writ petitions, setting aside the restriction on the certificate's validity and instructing the respondent to issue a waiver certificate covering charges until the actual release date of the goods. The judgment concluded by directing the respondent to comply with the court's order within a specified timeframe, ensuring the petitioner receives the appropriate waiver certificate as per the court's directives.