The High Court · 2025

Petition under Article 226 of lhe Constitution of lndia praying that in the circumstances stated in the affidavit filed theiewith, the High Court may be pleased to issue a Writ of Mandamus or any other appropriate writ or order or direction setting aside the Seizure Memo dated 1510512025 issued by the 4th Respondent as being without iurisdiction and contrary to the Foreign Trade . Policy, 2023 and consequently direct the 4th Respondent to forthwith release the Petitioner's imported consignment of Multi-Function Devices of 1 16 units under Bill of Entry dated 03/05/2025, bearing No.9858857 IA NO: 1 OF 2025 Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Courl rnay be pleased to direct the 4th Respondent to forthwith release the goods i.-.., '1 16 units of Multi- Function Devices that have been seized under the Seizure Memo dated 1510512025, pending disposal of the Writ Petition, as other\r'/ise the Petitioner will be put to severe loss and hardship. Counsel for the Petitioner: SRl. S. VIJAY ADITHYA counsel for the Respondent No.1: DEpUTy SOLICITOR GE:NERAL OF INDIA Counsel for the Respondent Nos.2to4: SRI DOMINIC FERNANDES, SC FOR CBIC The Court made the following: ORDER THE IIONoURABLE SRI JTISTICE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE SUDDALA CHALAPATHI RAO W.P.No.l5l82 OF 2025 ORDER, (per Ilon hla Sri Justica P.Sqm Koshy) Fleard Mr.S.Vijay Adithya, learned counsel for the petitioner and Mr.Dominic Femandes, leamed Senior Standing Counsel fbr thc CUIC, appearing fbr respondent Nos.2 to 4. Peruscd the record.

2. l.hc instant writ petition has been filed assailing thc seizure memo, dated 15.05.2025, issued by the 4'h respondent with tufther request to fbrthwith release the imported consignment o I the multilunctional devices ( I l6 units) under Bill of' Entry No.9858857. dated 03.05.2025.

3. Sirnilar writ petitions ol identical nature have already bccn consideled by this Bench wherein by way of a conditional interinr order this Bench had pennitted the release of seizcd goods subject to the petitioner/importer fulfilling certain conditions.

4. One such writ pctition is W.P.No.l2489 of 2025; rl'hcre thc goods irnported were seized by the Custorn-s authorities and by virtue of the interim order of this Higtr Corrn, the Cttstotns 2 authorities wcre ordcred to release on the following r onditions. For convenlence. wc' rcproduce paragraph Nos.26 & 2 / ol the order passcd in the albrcsaid writ pctition hereinunder

26. 'fhus. lirr: all thc albresaid reasons. it is orde-red l ri( let the respondcnt authorities pass arr ortlcr on the applicati('n lilcd by the petitioncrs lirr provisional rclcase olthe goods sul'ject to the cond itions tltat: :r) lhc pctitioner slrall par dcposit thc enhanced dLr I amount. On rcceipt t,f such cuhancctl tltttv lrnrount paid bv thc petitiorrers. thc goo(i\ in qucstion shall be relcased u'ithin a pcri rcl ol' lour (0-l) r\,eeks thercalier. b) For piry'nrcnt ot'such dutr. qLrantillcation shalI ire rnade b1. the Cuslorns lolthuitlr rritlrin oue (011 wcck lionr lrr' datc of rcccipt ol'a copl' of this ortlcr. On lcceipt of such qua rtificarion, the pa-\nlcnl shall bc irnmcdiate lv madc by the petitiolcrs arrd on rcccipt ol thc pavmcnl in entirclr,. the goods shall be cleased as indicaterl irbove at thc outer lirnit of lirur (04) ll,eeks. c) It is nradc clcar tl.urt this rtrder uill mrt stand in rlrc way for Customs l)epartrncnt to go ahcatl with the lurthcl prc.ceerlings including. the acljLrdication in tltc ntanrrcr known to larr d) Il is firrtlicr nradc clear that so fhr as the conditi,.rn ol'the potitionr'r lirat dcnmrrrage chargcs till date, Iirr the rloods be considercil iirr urrivcr. in this rcgard. ifanr applicatiol ir filcd by tlie petitiorcrs scckint such a rraivcr of dcnunur-age clt:trges. the samc shall be consitlcred and tlecided by tlie r.-'spomlcnts ohjectir'.'lr.

27. In addition. the petitioners arc also directed to provide a bank guarantcc worth l0 pcrccnt of thc total price of the goods importcd by them. Further, it is also ordcred that in the event if thc petitioners upon rclcasc ol the goods provisionally' make and scll thc suppll' to tllcir cttstomers. dctails trf the ctrstolners that of rclcvant price and details oI the respective transactions shall be maintained and made available to the respondent authorities from tlme to trme.

5. Pursuant to the said interim direction and upon the petitioner therein lulfilling thc conditions stipulated by the High Court, the seized goods u'cre rcleased to the petitioner' The said order of releasing ol the goods was subjected to challenge before the Hon'ble Supreme Court; wherc thc I lon'ble Supreme Court in S1.P.No.42808/24. datedl5.0l.2025, has refused to interfere with the order passed by this Bench.

6. However, as regards the proceedings before the adjudicating authority is concerned, the Hon'bte Supretne Courl permitted the adjudicating authority to proceed and decide the same strictly in accordance with law. 1'he petitioner is also held entitled for participation in the adjudicating procecdings 4

7. Pursuant to thc disposal of the SI-P, this Cor r has disposed of all such writ petitions whereby the goods were releascd and the proceedings u'erc pending belirre thc ad-iudicating ar thority.

8. Similar nature of lacts arc also there in thc ir:;tan1 case also where the stilge at this.jur-rcture is only thc seizure rnr'rno and prayer is also only lbr an interim release ol'thc seized goodr;

9. In thc factual ntatrix narrated in the prcccdirrg pal.agraphs. we are of the considered opinion that thc instant $,r il petition also thereforc carr be disposcd of at the admission stage itsclf. Reserving the right of'the adjudicating authority ro rakc appr,)[rriate decision in the procecdings after permitting the pc.titioner to r.cpresent before the adjudicating authoriry:

10. Thus, firr all the afbresaid rEasons. it is ordcre.d tlrat let the respondent authorities pass an order on the application frled by the petitioner firr provisional relcase of rhe goocls subject to the conditions that: a) 'fhe petitior-rer shall payldeptxit enhanced -thc duty anrount- C)rr receipt ol- such errhanccd duti aiioTnt paid b1, the petitioncr, thc goods in questio.r shall be relcasccl *'ithin a lreriod of tbur (04) u,ceks llri:r-'altcr 5 b) For payrnent of such duty, quantification shall be made by the Customs forthwith within one (01) week lrom the date of receipt of a copy of this order. On receipt of such quantification, the payment shall be immediatety made by the petitioner and on receipt ol the payment in entirety, the goods shall be released as indicated above at the outer limit of lour (04) weeks. c) It is made clear that this order will not stand in the way for Customs Dcpaftment to go ahead with the iurther proceedings inctuding the adjudication in the rranner known to law. d) It is lurther rnade clear that so fhr as the condition of the pctitioner that demr.nurage charges till date, for the goods be considered {br waiver, in this regard, if any application is filed by the petitioner seeking such a waiver of demmurage charges, the same shall be considered and decided by the respondents objectively. I l. In addition, thc petitioner is also directed to provide a bank guarantee worth t0 percent of the total price of the goods imported by them. F urther, it is also ordered that in the event if the pctitioner upon release of the goods provisionally makes and selI the supply to their customers. dctails ol the customers that of relevant price and ) t ( I 6 details of thc respective transactions shalr be nraint;rined and made available to the respondent authorities lrom time to tutre.

12. Needlcss ro rnenrion that the ad.iudicating r uthoritv in rhe process ol deciding the sante would not be ir an1 lnanner inf'luenced by thc order of'conditional release ordere d by this Coun. The authoritv shall decide thc samc considering thc ob.iections and contentions that would be raised on eithcr side. l3 Accordingly, this writ pctition is allowed. 'rlr order as to closed To, Miscellaneous applications pending, il ani,. shall stand SD/.A. JAYASREE TANT REGISTRAR \S sh //TRUE COPY// .SECTION OFFICER

1. The Secretary, Union of lndia, tvlinistry of Finance, Jeevar Deep Building, 3rd Floor, Sansad Marg, New Delhi-1 10 00 1 . Hyderabad-500 004.

2. Joint Commissionei of Customs (lmports), GST Bhavar, Basheerbagh, 3. Deputy Commissioner of Customs, lCD, Thimmapur-509 325, Telangana. 4. Superintendent of Customs (lCD-Thimmapur), HyderabarJ Customs Co m m issio ne rate, Hyderabad.

5. One CC to SRl. S. VIJAY ADITHYA, Advocate [OPUC 6 One CC to DEPUTY SOLICITOR GENERAL OF lNDll' IOPUC] 7. One CC to SRl. DOMINIC FERNANDES, SC FOR CB C [OPUC] 8. Two CD Copies IM B LS c, l- I HIGH COURT DATED:2510912025 ORDER WP.No.I5182 ot 2025 //., ) I t' /, ,( ltr " ,c 19 il0l/ 20a : |.,.) \:-\--__r_ a ALLOWING THE WRIT PETITION WITHOUT COSTS LO p{ "\.(-\4,L