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TMI Blog2021 (7) TMI 990X X X X Extracts X X X X X X X X Extracts X X X X ..... se of the said imports the petitioner is favoured with an Import Export Code No.0214014525 issued by Office of the Zonal Director General of Foreign Trade, Calcutta. The petitioner states that during the course of his business, imported a quantity of 27,000 kgs (net weight) ; of unflavoured supari from M/s. PT.V J&J INTERNASIONAL, INDONESIA, vide Commercial Invoice No.056/VJJI/BN/07/2017 dated 20.07.2017 for an amount of USD 48600. The said consignment was shipped vide Bill of Lading No.APLU078459111 by the said supplier. The import was accompanied by a Certificate of Origin, issued under the ASEAN - India Free Trade Area, Preferential Tariff, dated 26.07.2017, for import of the said goods, as well as phytosanitary certificate issued by the Ministry of Agriculture, Agency for Agriculture Quarantine, Republic of Indonesia No.0945982 dated 28.07.2017. 3. The petitioner states that on arrival of goods at Chennai Port, he filed Bill of Entry dated 02.08.2017 for clearance of the goods. The Bill of Entry was assessed to duty and out of charge was accorded in respect of the said Bill of Entry under CTH 21069030, as "unflavoured supari". However, for reasons unknown to to the petitioner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... regulations, notifications and orders issued thereunder; Once such an undertaking is given by the Service Provider and not complying with the same, then the Authorities are bound to initiate action against the Service Provider and in the present case, no action has been taken by the Authorities. 8. The petitioner referred Regulation 6 (1) (l) also, under the said Section, subject to any other law for the time being in force, shall not charge any rent or demurrage on the goods seized or detained or confiscated by the [Superintendent of Customs or Appraiser or Inspector of Customs or Preventive officer or examining officer, as the case may be]; 9. In support of the said contentions, the learned counsel for the petitioner relied on the judgment of the Bombay High Court recently delivered on 8th March 2021 in W.P.No.3676 of 2020 and the relevant paragraphs are extracted hereunder: "80. We have already noted that the 2018 Regulations have come into force on and from 01.08.2019. Regulation 10(l) makes it abundantly clear that an authorised carrier shall not demand any container detention charges for the containers laden with goods detained by the customs for the purpose of verifying ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1)(m) thereof, respondent No.4 i.e., the shipping line is under a legal obligation to comply with the certificate. Thus, the detention cum demurrage certificate dated 16th November, 2020 is binding on respondent No.4. That apart, holding on to the goods of the petitioner by respondent No.4 post the detention cum demurrage waiver certificate dated 16th November, 2020 and levying detention charges thereafter would be illegal and thus unlawful. 88. We may further clarify that it is nobody's case that the 2018 Regulations have not been validly made. It has therefore the full force and effect of a statute. A conjoint reading of Regulations 10(1)(l) and 10(1)(m) makes it abundantly clear that Priya Soparkar 41 wp 3676-20 the 2018 Regulations are fully binding on the shipping line and it is not open to the latter relying on a contractual provision to contend that it will not comply with a direction or certificate issued under Regulation 10(1)(l). The private contract between the petitioner and the shipping line must yield to the rigours imposed by the subordinate legislation vis-a-vis the subject matter of conflict i.e, levy of detention charges for the period under consideration. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f a copy of this judgment and order. On competition of the enquiry, a copy of the enquiry report shall be furnished to the petitioner. III) Considering the fact that customs authorities had promptly issued out of charge and the detention cum demurrage waiver certificates post the fresh order-in-original dated 6th November, 2020, we refrain from imposing cost on the customs authorities." 10. The learned counsel for the petitioner relying on the said judgment, solicited the attention of this Court with reference to Section 126 of the Customs Act, which contemplates 'the officer adjudging confiscation shall take and hold possession of the confiscated goods'. In view of the said provision under the Act, Regulations are framed and under Regulation 6(1)(l) of the Handling of Cargo in Customs Areas Regulations, 2009, no charges can be recovered. In the event of confiscation of goods by the Customs authorities as the authorities are in possession of the imported goods. 11. The learned counsel further relied on the judgment of the Madras High Court in the case of Giridhari Homes Private Limited, Vs. Principal Commissioner of Customs, Chennai-III, reported in 2018 (361) E.L.T., ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at all any deposits are collected in this regard, the said deposits are to be refunded. The contentions of the petitioners are that once the Statutory provisions contemplate that the goods belong to the Customs Department are confiscated and the Service Provider is not entitled to collect any charges, then they are bound to release the goods and refund the deposit, if any collected. 14. In the present case, even the goods are not released and the Service Provider is claiming charges, which is in violation of the Detention certificate issued by the Customs authorities. Thus, the petitioner is constrained to move the writ petition. 15. This Court is of the considered opinion that a thin distinction is to be drawn in between the Detention certificate as well as the relief granted by various Courts with reference to the Detention certificate issued by the Customs Department. The in-between possible or existing disputes are relevant for the purpose of granting the relief and such disputes between the Service Provider and an importer or exporter, cannot be adjudicated in a writ proceedings under Article 226 of the Constitution of India. 16. Before resolving the disputes between the Cu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oods or refund of the deposits, if any made. 19. Thus, this Court is of the considered opinion that in between disputes, more specifically, with the Service Provider and the importer or exporter has not been considered in any of these judgments relied upon by the petitioners. Therefore, this Court is of the opinion that the Detention certificate issued under the provisions of the Customs Act is reiteration of the legal position, which is binding on the Service Provider. However, such Detention certificate cannot be the sole document for the purpose of grant of relief of refund or release of goods without further adjudication with reference to the disputes or grievances exists between the Service Provider, who is a private party and the exporter or importer. 20. The learned Senior Panel Counsel appearing on behalf of the respondents disputed the contentions raised on behalf of the writ petitioner by stating that the Authorities considered the classification of the impugned goods. However, the Customs Authorities issued the Detention Certificate based on the orders of this Court dated 12.09.2017 passed in W.P.No.22114 of 2017. The learned Senior Panel Counsel made a submission that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Customs Cargo Service Provider under Regulation 6(1)(l) is that "Subject to any other law for the time being in force, shall not charge any rent or demurrage on the goods seized or detained or confiscated by the Superintendent of Customs or Appraiser or Inspector of Customs or Preventive Officer or examining officer, as the case may be". It is clear that the Customs Cargo Service Provider shall not charge any rent or demurrage. 13. Regulation 6, Sub-Clause (3) enumerates that "the Customs Cargo Service Provider shall publish and display at prominent places including website or webpage of the Customs Cargo Service Provider the schedule of charges for the various services provided by him in relation to the imported goods or export goods in the customs area." Perusal of the scheme of Regulation would reveal that there are certain contractual obligation between the Customs Cargo Service Provider as well as the importer or exporter. Such terms and conditions of the contract cannot be enforced by filing a writ petition or based on the Detention certificate issued by the competent authorities in the absence of any factual adjudication with reference to the disputes. 14. The question ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... spute exists between the parties based on the agreement or contractual obligations. Thus, Detention Certificate is an eligibility certificate, confirming the eligibility of an importer or exporter to claim refund under Regulation 6(1)(l) of the Handling of Cargo in Customs Areas Regulations, 2009. However, mere eligibility would not confer any right to claim refund in the absence of adjudication of disputes or compliance of the contractual obligations between the parties. In other words, the Detention certificate perse would not confer any right on the petitioners to seek refund directly from the Customs Cargo Service Provider. The terms and conditions, contractual obligations between the petitioners and the Customs Cargo Service Provider are unconnected with the Customs authorities of the Department of Customs. Thus, an adjudication becomes mandatory for the purpose of refund. In the event of consensus or no dispute, the parties themselves may take a decision for refund. However, the Detention certificate cannot provide cause for seeking a relief by filing the writ petitions under Article 226 of the Constitution of India. 20. The amount of deposit, the amount of refund, the per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... form an opinion regarding the disputed facts, which all are to be made with reference to the documents and evidences and in consonance with the terms and conditions of the agreement or contract. 25. This being the principles to be followed, the Detention certificate issued by the Customs authorities is to be construed as an eligibility certificate for the purpose of claiming the benefit conferred under Regulation 6(1)(l) of the Handling of Cargo in Customs Areas Regulations, 2009 and the certificate would not confer any right on the holder of the certificate to claim refund without adjudication of the disputed facts and circumstances with reference to the terms and conditions of the agreement or contract. Such an adjudication cannot be done in a writ proceedings under Article 226 of the Constitution of India. Therefore, for the purpose of adjudication, the parties are bound to approach the competent forum and after resolving the disputes, the refund or otherwise is to be granted by following the procedures as contemplated. 26. In the present cases, the petitioners sought for a direction to the second respondent, to direct the third respondent. Such a direction is uncalled for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dings. As held in aforementioned paragraphs, the Detention certificate issued by the Customs authorities is to be construed as an eligibility certificate for claiming refund. However, the said certificate would not confer right to get back the refund, in the absence of resolving the disputes between the Service Provider and the importer or exporter. Thus, the procedures and resolving the disputes in between the eligibility certificate and refund can never be waived by the High Court nor a direction can be issued to direct the Service Provider to refund the amount without resolving the disputes, if any exists between the Service Provider and the importer or exporter." 22. The undertaking clause in Regulation 5 (5) is to ensure that the service providers implement the provisions of the Act and the Rules as well as the consequent orders issued by the Authorities. However, this Court has held in the aforementioned paragraphs that Detention Certificate is to be construed as Eligibility Certificate for the purpose of claiming refund and the refund is to be granted after resolving the disputes, if any exist between the service providers and importers or exporters. The contractual relati ..... X X X X Extracts X X X X X X X X Extracts X X X X
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