1971 (2) TMI 42 - HC - Customs

Summary

Issues:
1. Interpretation of the order of the Central Board of Revenue regarding the importation of goods under a valid license.
2. Whether the Collector of Customs is obligated to issue a Detention Certificate to the importer.
3. Entitlement of the importer to a Writ of Mandamus for the issuance of the Detention Certificate.

Analysis:
1. The petitioner, a partner of a company, imported goods under a valid license issued under the Export Promotion Scheme. The Collector of Customs detained the goods for examination and imposed a fine for alleged non-conformity with the license specifications. The Central Board of Revenue remitted the fine and directed the goods to be cleared against the license, indicating leniency towards the importer. The court analyzed the Central Board's order and concluded that there was no intention to warn or penalize the importer, as the goods were allowed clearance based on the license.

2. The petitioner sought a Detention Certificate to avoid demurrage charges imposed by the Port Trust due to the goods being detained by the Customs. The court held that the Customs Authorities have a duty to act reasonably and promptly in examining goods and issuing a Detention Certificate to prevent the importer from being penalized by the Port Trust. As the importer was found not at fault and the goods were cleared based on the license, the court ruled that the petitioner was entitled to a Writ of Mandamus for the issuance of the Detention Certificate by the Customs Authorities.

3. Referring to a previous case, the court emphasized that the Customs Authorities exercise quasi-judicial functions when detaining goods, and there is a duty to grant a Detention Certificate if the importer is found not to have violated any license conditions. The court ruled in favor of the petitioner, granting the Writ of Mandamus for the issuance of the Detention Certificate within a specified timeframe. The judgment clarified the importer's right to the certificate and highlighted the duty of Customs Authorities to act reasonably and promptly in such matters.

In conclusion, the court quashed the impugned order of the Collector of Customs and directed the issuance of the Detention Certificate to the petitioner, emphasizing the importance of protecting the importer's rights in customs-related matters.