Detention certificate for full customs detention period can trigger reconsideration of excess demurrage refund claims.

Where imported goods were detained for customs verification and test, the HC drew an adverse inference from the customs authorities' failure to explain why the detention certificate was limited to part of the detention period. It directed issuance of a detention certificate for the remaining period, enabling the importer to seek consequential relief. It also held that, once the additional certificate was produced, the port trust must consider the importer's claim for refund of excess demurrage on that basis. The writ petitions were therefore substantially allowed by granting the detention certificate relief and by requiring reconsideration of the demurrage refund claim.

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Issues: (i) Whether the customs authorities were bound to issue a detention certificate for the period during which the imported goods remained detained beyond the period already covered by the certificate; (ii) Whether the port trust was required to consider refund of the excess demurrage on production of the detention certificate.

Issue (i): Whether the customs authorities were bound to issue a detention certificate for the period during which the imported goods remained detained beyond the period already covered by the certificate;

Analysis: The goods had been detained for verification and analytical test at the instance of the customs authorities. A detention certificate had already been issued for only a limited period, but the material on record showed that the goods continued to remain under detention for the remaining period as well. No counter-affidavit or explanation was filed by the customs authorities to justify the confinement of the certificate to a part of the detention period. In these circumstances, the Court drew an adverse inference and found no justification for denying the certificate for the balance period.

Conclusion: The customs authorities were directed to issue a detention certificate for the remaining period of detention, in favour of the petitioner.

Issue (ii): Whether the port trust was required to consider refund of the excess demurrage on production of the detention certificate;

Analysis: The port trust had already granted remission for the period covered by the existing detention certificate and had collected demurrage for the balance period. The Court held that once a further detention certificate was issued, the petitioner could present it to the port trust for reconsideration of the claim for refund. The Court therefore moulded the relief and required the port trust to examine the refund claim on the basis of the certificate to be produced.

Conclusion: The port trust was directed to consider the petitioner's claim for refund of excess demurrage on production of the detention certificate, in favour of the petitioner.

Final Conclusion: The writ petitions were substantially allowed by compelling issuance of a further detention certificate and by directing consideration of refund of demurrage based on that certificate.

Ratio Decidendi: Where imported goods are detained by customs authorities and the authorities fail to justify curtailing the detention period covered by a certificate, the Court may draw an adverse inference and direct issuance of a detention certificate for the full period of detention, enabling the affected importer to seek consequential demurrage relief.

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