High Court · 2025

Petition Under Article' 226 of the Constitution of lndia praying that in the circumstances stated in the affidavit filed therewith ' the High Court may be o'0"' or direction more particularly one in the nature of a pleased to issue 'n :", ":: : :ffi H:ili1"-'J:'":1n, wR* o F MAN DAM u s 0 the various models of Second-hand Highly Spect imported by the Petitioner vide Tech Solutions' Copying and Scanning Machines seizure Memo dated 1 i on ''o'2uand refusal to allow the clearance of the subject goods covered Uy uiOt-aff ot Entry No 4224698 dated 01 Og 2025 (121) units ""' "' * *"'":' , payment of applicable total duties on the declared value as arbilrary, unreasonable, contrary to the provisions of the Customs Act '1 962, the lmport- Export Policy 2023, lVeity Notification S.O. No.2844(E) dated 01 .07 2021 by duly setting aside the seizure memo and panchanama and Supardnama d|.11.09.2025 of 4th respondent is in violation of petitioners fundamental rights guaranteed by Article 14, 19(1Xg) and 3004 of the Constitution of lndia and to direct the Respondent to release the subject goods forthwith on applicable duty by granting waiver of demurrage charges. |.A.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 Court may be pleased to direct the 1 to 4 respondent to provisionally release various models of Second-hand [\I/s. Copy Tech Solutions, Copying and Highly Specialized Equipment - Scanning Machines, imported by the Petitioner and which have been submitted for clearance before the Respondents 1 to 4 vide Bill of Entry No. 4224698 dated 01 .09.2025 (121) Units, on payment of applicable duty. Counsel for the Petitioner : SRI MOHD ANWAR ALl, LEARNED COUNSEL REPRESENTING SRI MALLA REDDY GADIPALL Counsel for the Respondents : M/s DOMINIC FERNANDES (SENIOR STANDING COUNSEL FOR CBIC) The Court made the following ORDER THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRI JUSTTCE SUDDALA CHALAPATHI RAO W.P.No.28l49 OF 2025 ORDER, (per Hon'ble Sri Justice P.Sam Koshy) Heard Mr.Mohd. Anwar Ali, leamed counsel representing Mr. Malla Reddy Gadipally, teamed counsel for the petitioner and Mr.Dominic Femandes, learned Senior Standing Counsel for CBIC, appearing lor the respondents. Perused the record'

2. The instant writ petition has been filed assailing the seizure memo dated 1 1.09.2025, issued b1' the 4th respondent with the further request to fbrthwrth releasc- the imported consignment of the multifunctional devices ( 121 units) under Bill of Entry No'4224698 dated 0l .09.20L5.

3. Simitar writ petitions of identicat nature have already been considered by this Bench rvherein by r'vay of a conditional interim order this Bench had permitted the release of seized goods subject to the petitioner/imporler fulfilling cenain conditions'

4. One such writ petition is W.P.No.12489 of 2025; where the goods imported were seized by the Customs authorities and by 2 virtue of the interim order of this High Court, the Customs authorities were ordered to release on the lollowing conditions For convenie'nce, we reproduce paragraph Nos.26 & 27 of the order passed in the aforesaid writ petition hereinunder:

26. Thus, for all the aforesaid reasons, it is ordered that let the respondent authorities pass an order on the application filed by the petitioners for provisional release of the goods subJect to the conditions that: a) The petitioner shall payldeposit the enhanced duty amouni- On receipt of such enhanced duty amount paid by the petitioners, the goods in question shall be released within a period of four (04) weeks thereafter. b) For payment of such duty, quantification shall be made by the Customs forthwith within one (01) week from the date of receipt of a copy of this order. On receipt of such quantification, the payment shall be immediately made by the petitioners and on receipt of the payment in entirety, the goods shall be released as indicated above at the outer limit of four (04) weeks. c) lt is made clear that this order will not stand in the way for Customs Department to go ahead with the further proceedings including the adjudication in the manner known to law. d) lt is further made clear that so far as the condition of the petitioner that demmurage charges till date. for the goods be considered for waiver, in this regard, if any _ -7,/ 3 application is filed by the petitioners seeking such a waiver of demmurage charges, the same shall be considered and decided by the respondents objectively.

27. ln addition, the petitioners are also directed to provide a bank guarantee worth 10 percent of the total price of the goods imported by them Further, it is also ordered that in the event if the petitioners upon release of the goods provisionally make and sell the supply to their customers, details of the customers that of relevant price and details of the respective transactions shall be maintained and made avaitable to the respondent authorities from time to time.

5. Pursuant to the said interim direction and upon the petitioner therein fulfilling the conditions stipulated by the High Court, the seized goods were released to the petitioner' The said order of releasing of the goods was subjected to challenge before the Hon'ble Supreme Couft; where the Hon'ble Supreme Court in SLP.No.42808 124, dated l5.Ol-2025, has retused to interfere with the order passed bY this Bench.

6. However, as regards the proceedings before the adjudicating authority is concerned, the Hon'ble Supreme Court permitted the adjudicating authority to proceed and decide the same strictly in 4 accordance with law. The petitioner is arso herd entitred for participation in the adj udical.ing proceedings.

7. Pursuant to the disposal of the SLp, this Cour-t has disposed of all such rvrit petitions whereby the goods were released and the proceedings were pending before the adjudicating authority.

8. Similar nature of facts are aiso there in the instant case also where the sta-qe at this juncture is only the seizure mcmo and prayer is also only fbr an interim release of the seized goods.

9. In the lactual matrix nanated in the preceding paragraphs, we are of the considered opinion that the instant writ petition also therefore can be disposed of at the admission stage itself. Reserving the right of the adjudicating authority to take appropriate decision in the proceedings after permitting the petitioner to represent before the adj udicat ing aurhority:

10. Thus, fbr all the aforesaid reasons, it is ordered that let the respondent authorities pass an order on the application filed by the petitioner for provisional release of the goods subject to the conditions that: =. ) a) The petitioner shatl payldeposit the enhanced duty amount. On receipt of such enhanced duty amount paid by the petitioner, the goods in question shall be released within a period of lour (04) weeks thereafter' b) For payment of such duty, quantification shall be made by the Customs forthwith within one (01) week from the date of receipt of a copy of this order' C)n receipt of such quantification, the payment shall be immediately made by the petitioner and on receipt of 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 rvill not stand in the way for Customs Department to go ahead with the further proceedings including the adj udication in the manner known to law. d) It is further made clear that so far as the condition of the petitioner that demmurage charges till date, for the goods be considered for 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.

11. In addition, the petitioner is also directed to provide a bank guarantee worth t0 percent of the total price of the goods imported \ 6 by thern. Further, it is also ordered that in the event if the petitioner upon release of the goods provisionally makes and se the supply to their cuslotners, details of the customers that ol relevant price and details of the respective transactions shalI be maintained and nrade available to the respondent authorities from time to time.

12. Needless to mention that the adjudicating authority in the process of deciding the same would not be in any manner inlluenced b_v the order of conditional release ordereil by this Court. 'I-he authoriti,shall decide the same co,sidering the objcctions and contentions that would be raised on either side. l-? Accordingly, this writ petition is allowed. No order as to c o sts. closeel To Miscellaneous applications pending, if any. shall stand //TRUE COPYII F i i DI S . PONNA KRISHNA TANT REGISTRAR SECTION OFFICER 1 2 ST Bhavan, Opp. L The Commissioner of Customs, (Hyderabad ll) lm rts, G B Stadium, Basheer Bagh, Hyderabad- 500004 The Joint Commissione r, of Customs (lmports), O pp.L.B. stadium, GST Bhavan, Basheerba gh, Hyderabad- 500004 The Assistant Com missioner of Customs, O/o Dy. Commissroner of Customs, lCD, Thimmapur, Ranga Reddy -509 325 The Superintende nt of Customs O/o Dy. Commissioner of Customs Thimmapur, Ran ga Redd y -509 325 One CC to SRI t) One CC to lrlls M CBIC) Advocate 7 Two CD Copies MALLA REDDY GADIPALLY, Advocate DOMINIC FERNANDES loPUCl (senior standing counsel for loPUCl ICD, 4 SA BS HIGH COURT DATED:1 710912025 i). l) L__l 2 0 sEP 2$25 i o5, )...., ORDER WP.No.28149 ot 2025 I ALLOWING THE W.P WITHOUT COSTS. $ \q2D