High Court · 2025

Petition under Article 226 of lhe Constitution of lndia praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to invoke the jurisdiction vested by Afticle 226 of the Constitution of lndia to issue a Writ of Mandamus or any other appropriate writ or Order or direction setting aside the Seizure Memo dated 15-09-2025 issued by the 04th Respondent as being without jurisdiction and contrary to Foreign Trade Policy 2023 and consequently direct the 04th Respondent to forthwith release the Petitioners imported consignment of Multi-Functional Devices (MFD) of 106 units under Bill of Entry dated 11-09-2025, bearing No. 4450050. lA 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 04th Respondent to forthwith provisionally release the goods i.e., 106 Units of Multi-Function Devises (MFDs) which have been seized under the Seizure {Vlemo dated 15-09-2025, pending disposal of the present Writ Petition, else the Petitioner would suffer irreparable loss and severe hardship. Counsel for the Petitioner: SRI AKKAPEDDI SRINIVAS Counsel for the Respondent No.1: SRI A.KRANTI KUMAR REDDY Counsel for the Respondent No.2 to 4: SRI DOMINIC FERNANDES, Sr. SC FOR CBIC The Court made the following: ORDER THE HONOURABLE SRI JUSTICE P.SAM KOSHY rHE HoNou-iil3, sRr JUSTICE SUDDALA CHALAPATHI RAO .P.N OF ORDER, Qer Hon'ble Sri.Iustice P.Sam Koshy) Heard Akkapeddi Srinivas, learned counsel for the petitioner, Mr. A.Kranti Kumar Reddy, learned counsel representing the Union of India and Mr.Dominci Fernandes, learned Senior Standing Counsel for the CBIC, appear,ing flor respondent Nos.2 to 4. Perused the record.'

2. The instant writ petition has been filed assailing the seizure memo, dated 15.09.202.5, issued by the 4th respondent with the f,urther request to lbrthrvith release the imported consignment of the rnultifunctional devices (106 units) under Bill of Entry No.4450050, dated | | .09.2025.

3. Similar writ petitions of- identical nature have already been considered by this Bench wherein by way of a conditional interim order this Bench had permitted the release of seized goods subject to the petitioner/importer fulfilling certain conditions. '-.h-i 2

4. One such writ petition is W.P.No.l2489 of 2025; where the goods imported were seized by the Customs authorities and by virtue of the interim order of this High Court, the Customs authorities were ordered to release on the fiollowinq conditions. Iior convenience, we reproduce paragraph Nos.26 & 27 of the order passed in the aforesaid writ petition hereinunder:

26. l'hus. for all thc aforesaid reasons. it is ordcred that let the respondent authorities pass an order on the application filed by the petitioners for provisional release of the goods suhject to the conditions tlrat: a) 'fhe petitioncr shall pa1/dcposit the enhanccd duty amount. On receipt of such enhanced duty amount paid by thc petitioners, the goods in question shall be rcleascd within a pcriod of four (04) rveeks thereafler. b) For payment ol- such dut1,. quantification shall bc made by the Customs forthwith within one (01) week frorn the date of receipt of a copy of this order. On reccipt of such quantification, the pa.yment shall be immediately rnade by the petitioners and on receipt of the payment in entirety- the goods shall be r.cleased as indicated above at the outer limit of tbur (04) weeks. c) It is made clcar that this order rvill not stand in the r.vay for Custonrs l)epartment to go ahead with the furthcr proceedings including the adjudication in the manner known to [arv. d) tt is further made clear that so f-ar as the condirion of the petitioner that demmurage charges till date, for thc goods lre considered tbr waiver, in this regard. if any applieatiSh is filed bv a :f 3 .: the petitioners seeking such a rvaiver of demmurage charges, the same shall be considered and decided by the respondents objectively 2T.Inaddition, the petitioners are also directed to provide a bank guarantee rvorth l0 percent o[the total price of the goods imported by them. F'urther, it is also ordered that in the event if the petitioners upon release of the goods provisignally 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 available 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 Court; .where the Hon'ble Supreme Court in SLP.No.428OBl24, 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'ble Supreme Court permitted the adjudicating authority to proceed and decide the same strictly in accordance with law. The petitioner is also held entitled for participation in the adj udicating proceedings. 4

7. Pursuant to the disposal of the SLP, this Court has disposed of all such writ petitions whereby the goods were released and the proceedings were pending before the adjudicating authority.

8. Similar nature of, facts are also there in the instant case also where the stage at this juncture is only the seizure rnemo and prayer is also onl1, fn. an interim release of the seized goods.

9. [n the factual matrix narrated in the preceding paragraphs, we are of the considered opinion that the instant w,rit petition also therefore can be disposed of at the admission stage itself. Reserving the right o1'the adjudicating authority to take appropriate decision in the proceedings after permitting the petitioner to represent before the adjudicating authority:

10. Thus, fbr 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 shalt payldeposit the enhanced duty amount. On receipt of such enhanced duty amount paid by the petitioners, the goods in question shatl be released within a period of fuur (04) weeks thereafter. i : i I l i w .i' 5 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) It is made clear that this order will not stand in the way for Customs Department to go ahead with the fuither proceedings including the adjudication in the manner known to [aw. 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 petitioners seeking such a waiver of demmurage charges, the same shall be considered and decided by the respondents objectively.

11. In 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 makes and sell the supply to their customers, details of the customers that of relevant price and I t 5 details of the respective transactions shall be maintained and made available to the respondent au.thorities 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 influenced by the order of conditional release ordered by this Court. The authority shall decide the same considering the objections and contentions that would be raised on either side.

13. Accordingly, this writ petition is allowed. No order as to costs. Miscellaneous applications pending, if any, shall stand closed. /TRUE COPY// SD/. A.SREENIVASA REDDY ASSISTANT RJEGISTRAR SECTI6trOFFICER

1. The Secretary, Department of Revenue, tMinistry of Finance, Govt. of lndia, New Delhi

2. The Joint commissioner of customs (lmports), GST Bhavan, Basheebagh, Hyderabad - 500004

3. The Deputy Commissioner of Customs, lCD, Timmapur - 509325' Telangana 4. The Superintendent of Customs (lCD-Timmapur), Hyderabad Customs Commissionerate, Hyderabad, Telangana

5. One CC to SRI AKKAPEDDI SRINIVAS, Advocate [OPUC] 6. one cc to sRl A.KRANTI KUMAR REDDY, Advocate [oPUC] 7. one cc to SRI DotvllNlc FERNANDES, Sr. SC FOR CBIC [OPUC] 8. One CC to SRt DEPUTY SOLICITOR GENERIAL OF lNDlA, High Court for the State of Telangana at Hyderabad [OPUC] 1 1 ,l I ,l To,

9. Two CD Copies BSR TKS Pr(4.- t , / HIGH COURT DATED:2410912025 ORDER WP.No.29260 of 2025 /,','k + I l, J t ,.n, t THE s 14 (, {- 0E 1i0l/ 2n6 t)€sp ATC ALLOWING THE WRIT PETITION, WITHOUT COSTS Pfl\q" 29 [ro\vd^