Customs authorities must issue detention waiver certificate after importer provided accurate information about price differences during investigation

The Bombay HC directed customs authorities to issue a detention waiver certificate to an importer whose goods were detained for investigation for approximately two months. The court found that the petitioner provided accurate information regarding price differences between supplier and manufacturer invoices, and customs authorities were not justified in denying the waiver certificate. The court held that demurrage charges could have been avoided if goods were shifted to warehouse under Section 49 after testing. The petitioner was entitled to detention waiver certificate until January 13, 2021, and respondents were directed to issue the certificate within four weeks.

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Issues Involved:
1. Issuance of Detention Waiver Certificate.
2. Reimbursement/Refund of Detention Charges.

Summary:

Issuance of Detention Waiver Certificate:

The petitioner, engaged in importing agrochemicals, sought relief under Article 226 of the Constitution of India, specifically requesting the issuance of a detention waiver certificate from Respondent No. 2. The petitioner argued that the delay in releasing the goods was due to an investigation by Respondent Nos. 1 & 2, which lasted almost two months, not attributable to the petitioner. The petitioner cited Public Notice No. 26 of 2010, which states that no rent or demurrage should be charged if goods are detained by customs. Respondent Nos. 1 & 2 contended that due to mis-declaration of the value of goods, the entries in the bill of entry were incorrect, justifying the imposition of detention charges. However, the court found that the petitioner had provided a reasonable explanation for the price difference, which was not rebutted by the respondents. The court also noted that Respondent Nos. 1 & 2 failed to respond to the petitioner's repeated requests for a waiver certificate, which should have been addressed promptly. The court referred to various circulars and instructions emphasizing that detained goods should be moved to a customs warehouse to avoid demurrage. Consequently, the court directed Respondent Nos. 1 & 2 to issue the detention waiver certificate within four weeks.

Reimbursement/Refund of Detention Charges:

The petitioner also sought reimbursement/refund of detention charges amounting to Rs. 46,96,695/- paid to Respondent No. 3 along with interest. However, the court clarified that it was not adjudicating any dispute between the petitioner and Respondent No. 3, and no relief was granted against Respondent No. 3 in this matter. The court emphasized that its observations should not be interpreted as views on the dispute between the petitioner and Respondent No. 3.

Conclusion:

The petition was disposed of with the following orders:
1. Respondent Nos. 1 & 2 to issue the detention waiver certificate within four weeks.
2. No adjudication on the dispute between the petitioner and Respondent No. 3.
3. No costs.

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