2019 (8) TMI 603 - HC - Customs

Court orders release of imported goods, directs issuance of detention certificate to reduce charges

The court disposed of the writ petition after the respondents agreed to examine and release the imported goods under scrutiny within two weeks. The ... Issuance of Detention certificate - waiver or reduction in demurrage charges - whether the petitioner is entitled for a certificate for the detention period from 12.04.2019 to 12.06.2019? - department contended that delay in released of goods are attributed to petitioner hence the first respondent cannot be compelled to issue a detention certificate - HELD THAT:- This Court after appreciating the limited object for which the detention certificate by reference to proceedings is insisted upon by the petitioner is convinced that the first respondent could be directed to issue a certificate referring to the dates of detention and the release order made in this behalf on subsequent bills of Entry and issues a certificate to petitioner. The petitioner is given liberty to enclose a copy of this judgment together with a request to Ist respondent and upon receipt of such a request, certificate is issued by first respondent within three days therefrom. Petition disposed off. Issues:1. Relief sought for writ petition including certiorari, mandamus, and release of imported goods.2. Request for detention certificate to reduce demurrage charges.3. Dispute over responsibility for delay in releasing goods.4. Legal obligation of respondents to issue detention certificate.5. Analysis of the judgment and decision on issuing the detention certificate.Issue 1: Relief sought for writ petition including certiorari, mandamus, and release of imported goods.The petitioner initially filed a writ petition seeking various reliefs, including a writ of certiorari to call for records related to bill of entries, a writ of mandamus to direct the release of imported goods, and other appropriate orders. The judgment disposed of the petition after the respondents agreed to conduct a detailed examination of the containers and release them after proper scrutiny. The authorized representative of the petitioner was designated to participate in the examination process, and the respondents were directed to complete the examination within two weeks.Issue 2: Request for detention certificate to reduce demurrage charges.Following the release of goods, the petitioner requested a detention certificate to waive or reduce demurrage charges incurred due to delays in clearing the goods. The first respondent contended that there was no provision for issuing a detention certificate and that the petitioner was responsible for the delays. The petitioner argued that such a certificate was necessary to avoid substantial demurrage charges imposed by shipping companies, citing regulations prohibiting charges on seized goods. The judgment highlighted the petitioner's intention to use the certificate solely for reducing demurrage charges without holding the respondents liable for any amount.Issue 3: Dispute over responsibility for delay in releasing goods.Both respondents attributed the delay in releasing goods to the petitioner, making serious allegations against the petitioner's business practices. The first respondent emphasized that the detention or release of goods falls under customs proceedings, and issuing a separate detention certificate was not mandatory. The second respondent clarified that the delay was due to intelligence inputs and subsequent release orders following court directives, indicating no obligation to issue a detention certificate.Issue 4: Legal obligation of respondents to issue detention certificate.The petitioner's counsel argued for the issuance of a detention certificate, citing a similar certificate issued in a previous case by an Assistant Commissioner. The respondents opposed the request, stating that such certificates were not part of standard procedures and were not legally mandated. The judgment acknowledged the petitioner's need for the certificate to present a case for demurrage charge reduction to the shipping agency, leading to a direction for the first respondent to issue a certificate referencing the detention and release dates without imposing any liability on the respondents.Issue 5: Analysis of the judgment and decision on issuing the detention certificate.The court analyzed the circumstances and submissions from both parties, recognizing the petitioner's legitimate request for a detention certificate to support a claim for demurrage charge reduction. Despite the respondents' objections, the court directed the first respondent to issue the certificate within three days upon the petitioner's request, clarifying that it would not create any liability for the respondents or provide a cause of action against them. The certificate was intended for the limited purpose of claiming demurrage charge waiver or reduction from the shipping agency, concluding the writ petition accordingly.