IN THE COURT OF APPEAL OF THE DEMOCRATIC SOCIALIST REPUBLIC OF SRI LANKA In the matter of an application for mandates in the nature of Writ of Certiorari, Mandamus and Prohibition in terms of Article 140 of the Constitution of the Democratic Socialist Republic of Sri Lanka.

Ace Healthcare (Pvt) Ltd, No. 72/A, Illimba Road, Kandana, Horana.

CA/WRIT/171/2022 Petitioner Vs.

1. Major General (Retired) Vijitha Ravipriya Director General of Customs, Customs House, Colombo 11.

2. D. A. S. Chandrasiri Director of Customs Sri Lanka Customs, Central Verification Terminal, Orugodawatte.

3. W. T. Krishantha Appraiser, Sri Lanka Customs, Central Verification Terminal, Orugodawatte.

4. Udara Kulasuriya Appraiser, Sri Lanka Customs, Central Verification Terminal, Orugodawatte.

5. W. Saman C. Wickramasekara Superintendent of Customs, Sri Lanka Customs, Customs House, Colombo 01.

6. Board of Investment of Sri Lanka West Tower, World Trade Centre, Echelon Square, Colombo 01.

7. Renuka M. Weerakone Director General, Board of Investment of Sri Lanka West Tower, World Trade Centre, Echelon Square, Colombo 01.

8. Hon. The Attorney General, Attorney General’s Department, Colombo 12. Respondents Before : Sobhitha Rajakaruna J.

Dhammika Ganepola J.

Counsel : Nihal Jayawardena PC with A.R.P. Bandara for the Petitioner.

Sumathi Dharmawardena PC, ASG with M. Fernando SC for the Respondents.

Argued on : 09.08.2022, 18.10.2022, 07.02.2023 and 22.02.2023 Written Submissions: Petitioner - 24.03.2023 Respondents- 09.05.2023 Decided on : 30.05.2023 Sobhitha Rajakaruna J.

The Petitioner primarily seeks for a mandate in the nature of a writ of Certiorari quashing the decision of the Sri Lanka Customs to detain the consignment of goods in reference to the CUSDEC No. 12970 when the said CUSDEC was submitted for clearance on 10.03.2022. In addition to the said relief, the Petitioner is seeking, inter alia, for a mandate in the nature of a writ of Mandamus directing the Respondents to release the goods imported under the said CUSDEC No. 12970 and also for a writ of Prohibition restraining the 1^st Respondent holding a customs inquiry in relation to the said importation.

The Petitioner has entered into an agreement with the Board of Investment of Sri Lanka (’BOI’) and the Petitioner has been registered as a BOI company pursuant to a certification issued by BOI (6^th Respondent) under and in terms of Section 17 of the Greater Colombo Economic Commission Law No. 4 of 1978 (’BOI Law’). The Agreements entered into between the Petitioner and the BOI are annexed as 'P3' to ‘P5’. The Petitioner states that construction work of pharmaceutical and cosmeceutical manufacturing plants commenced in the year 2018 and accordingly, the Petitioner has obtained approval to import related plants and machinery on duty free basis. The syrup, tablet and capsule manufacturing plants were also included in the said project. Setting up of an EU GMP1 Cleanroom Compliant facility was supposed to be a part of the said manufacturing plant. The Petitioner asserts that the BOI has granted approval to import equipment for a complete Cleanroom under HS Code 8479.89.90 for which CESS is not applicable and the respective consignment contained only the equipment essentials for the Cleanroom. The allegation against the Petitioner was that the Petitioner had failed to declare 14 plastic containers which do not fall within the above HS Code. Anyhow, the Petitioner’s contention is that such items are storage devices to be kept in the stainless-steel cupboard and the 2^nd, 3^rd and 4^th Respondents manifestly violating the agreements between the BOI and the Petitioner have decided that the said consignment was subjected to CESS. Referring to the letters, marked ’P23’ to ’P25’, the Petitioner states that the BOI has informed Sri Lanka Customs that the contents of the subject consignment imported under CUSDEC No. 12970 were part of the machinery of the manufacturing plant and it’s under the classification of HS Code 8479.89.90.

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