2018 (3) TMI 1503 - AT - Customs

Issuance of detention certificate - request for issue of detention certificate for the said period was rejected by Deputy Commissioner of Customs on the ground that the goods had not been subject to detention by Nhava Sheva Customs - Held that - it is seen that there is no provision therein for issue of detention certificate and the circular itself forwarns the logistics service provider not to collect any rent or demurrage in specified circumstances. There is no dispute that the goods were not seized or confiscated and it is questionable whether the goods had actually been detained when the appellant was at liberty to clear their goods on payment of duty. Detention follows on order issued to a custodian not to release goods without the approval of the competent authority. Such an order is not seen on the record, nor has it been produced by the appellant. Considering the trouble visited and the delays incurred by the appellant owing to the wrong re-determination on the part of the proper officer it would appear only proper that a detention certificate should be issued by the Customs authorities which may be produced before the custodian of the cargo to seek relief from the demurrage from detention charges already paid. Appeal allowed in part.

Summary

Issues:
- Interest on pre-deposit made at the time of filing appeal
- Interest on interest charged on assessed duty
- Interest on goods cleared against assessment
- Issue of detention certificate

Interest on Pre-deposit:
The appellant deposited the duty amount along with interest for clearance of goods after the re-determined assessment was set aside. The appellant sought interest on the pre-deposit as per circular no.1053/02/2017-CX. The Tribunal directed the interest to be released to the appellant without delay, emphasizing that the competent authority would be guided by the circular.

Interest on Assessed Duty:
The appellant contested the interest charge on the assessed duty, arguing that once the re-determined assessment order was set aside, the liability had been discharged promptly. The appellant relied on legal precedents to support their claim that no interest should be charged in such circumstances. However, the Tribunal held that in the era of self-assessment, the appellant should have paid the undisputed duty and proceeded in appeal to avoid interest liability.

Issue of Detention Certificate:
The appellant requested a detention certificate, attributing the delay in clearance to the arbitrary enhancement of assessable value by Customs authorities. They argued that the delay was not their fault but due to the authorities effectively detaining the cargo by demanding higher duty. The Tribunal examined relevant provisions and public notices but found no basis for issuing a detention certificate. However, considering the delays caused by the wrong re-determination, the Tribunal suggested that a detention certificate should be issued to seek relief from demurrage charges paid.

The Tribunal allowed the appeal partly, emphasizing the importance of following proper procedures in self-assessment and addressing delays caused by incorrect assessments. The judgment was pronounced on 09/03/2018.