The 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 pleased to invoke the jurisdiction vested by Article 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 29-09-202s 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 Petitioner's imported consignment of Multi-Functional Devices (MFD) of 108 units under Bill of Entry daled 1610912025, bearing No. 4547099 e lA NO: 1 OF 2025 Petition under Section 151 CPC praying that in the r r;umstances stated in the affidavit filed in support of the petition, the High Cour rray be pleased to direct the 04th Respondent to forthwith provisionally releas ; the goods i.e 108 Units of Multi-Function Devises (MFDs) which have bee seized under the Seizure Memo dated 2510512025, pending disposal of the p r: sent Writ Petition, else the Petitioner would suffer irreparable loss and severe h.rrdship Counsel for the Petitioner: SRl. AKKAPEDDI SRINIVAS Counsel forthe Respondent No.1: SRI B. MUKHERJEE REF SRI N. BHUJANGA Rr:,C) Deputy Solicitor Genr:ral of lndia Counsel for the Respondent Nos. 2to4: SRI DOMINIC FERt\ ANDES, SC FOR CBIC The Court made the following: ORDER A -/ THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE SUDDALA CHALAPATHI RAO W.P.No.30373 OF 2025 oRDER (pcr Hon'ble Sri Justice P.Sam Koshy) Heard Mr.Akkapeddi Srinivas, learned counsel for thc petitioner, Mr. B. Mukherjee, learned counsel representing Mr.N. Bhujanga Rao, learned Deputy Solicitor General of India, appearing fbr respondent No. l/Union of India and Mr.Dominci Fcrnandes, leamed Senior Standing Counsel for CBIC, appearing for respondent Nos.2 to 4. Perused the record.

2. The instant writ petition has been hled assailing the seizurc memo, dated 29.09.2025, issued by the 4'h respondent with the lurther request to forthwith release the imported consignment ol the rnultifunctional devices (108 units) under Bill of Entry No.4547099. dated. I 6.09.2025.

3. Similar writ petitions of identical nature have already been considered by this Bench wherein by way of an conditional interirr order this Bench had permitted the release of seized goods subject to the petitioner/importer fulfilling cer-tain conditions 2

4. One such writ petition is W.P.No. 12489 of 2r).t5; rvhere the goods importcd were seized by the Customs autlrL , -ities and by virtue ol the interim order of this High Court the Customs authoritics were ordercd to release on the followins .t,nditions. For convenlence, \\' e reproduce paragraph Nos.26 & ., 1 <tf the order passed in the aforesaid writ petition hereinunder

26. Thus. lbr all the albresaid reasons. it is ordered I rt lct thc respondcnt authorities pass an ordcr on the applicati n filcd by, thc pctitioncrs lbr provisional rclcasc ul'the goods su, i,:ct to the conditions rhat: a) Ihc pr:titioncr shall pay/deposit the enhanccd drr i amount. On rcccrpt rrf such cnhanced dutl.antount paid by the ,:titiorrcrs- the goods in question shall be released within a per rrl of lbur (04) wecks thercalicr. b) For pa;'nrcrrt ol such duty'. quantiflcation shall I.: rnade by thc Custonrs lirrthrvith w.ithin one (01) week fronr r( dale of receipt ol a copr ol'this order. On receipt ofsuch qui rtilicirtion. the paynrcnt shall hc intnrcdiatcly rlade by the petitio t .s and on receipt ol'thc pa\rncn1 in cntiret.r. the goods shall be .. eascd as indicatcd alxrvc at the outer linrit ollbur (04) weeks. c) It is rnade clcar thal this order will not stand in r( wa\.for Customs l)cpartnlcnt to go ahcad with the further J, lceedings including the adjudication in thc manncr knou,n to lari d) It is iurrhcr ntzrde clcar that so Ihr as thc cond petilioner lhat dcrrmuragc chargcs till datc. lbr thr j,ln ol' the iroo(ls he 3 considcred for u'aiver, in this regard, ifany application is filcd by the petitioners sceking such a waiver of demmurage charges, the same shall bc considcred and decided by the rcspondents objcctivell.

27. In addition. the petitioners arc also directcd to provide a bank guarantee worth 10 percent of thc total price of the goods imported by them. Furthcr, it is also ordered that in thc cvent if thc petitioners upon relcase of the goods provisionally make zrnd sell the supply to their customers, dctails of the customers that ol rclcvant price and details of the respectivc transactions shall be maintaincd and nrade available to thc rcspondent authorities from tlme to tlmc

5. Pursuant to the said interim direction and upon the petitioner therein fulfilllng 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.42808 124, 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 4 i \i \ accordance with law. 'lhe petitioner is also l.re cl entitled for participation in the adjudicating proceedings. 7 Pursuant tr: the disposal of the SLP, this Cou"r has disposed of all such writ petitions whereby the goods were r l,:ased and the proceedings were pending betbrc the adjudicating authority

8. Similar nature of facts are also there in the ir).ilant case also where the stage at this juncture is only the seizure mr.nro and prayer is also only for an interim release ofthe seized goods

9. In the factual matrix narated in the preceding:r,ragraphs, we are of the considered opinion that the instant u,r.i petition also therefore can be disposed of at the admission stage it.t:lf. Reserwing the right of the adjudicating authority to take approp:iate decision in the proceedings after pcrmitting the petitioner to rt,;.r-s5sn1 !sf.r. the adjudicating authority

10. Thus, for all the afbresaid reasons, it is ordetr d thal let the respondent authorities pass an order on the applicati, n filed by the petitioners for provisional releasc of the goods rr,: rject to the conditions that 5 a) The petitioner shall payldeposit the enhanced duty amount. 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) It 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) tt 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 l0 percent of the total price of the goods imported ) I by them. Further, it is also ordered that in tl : event if rhe petltloners upon release of the goods provisionalh niakes and sell the supply to their customers, details of the cu-tomers that of relevant price and details of the respective trans.c.ions sha be maintained and made available to the respondent irLL,horities from time to time.

12. Needless to mention that the adjudicating z rthority in the process of deciding the same would not be i an), lnanner influenced by the order of conditional release ordere ry this Cour1. The authority shall decide the same considering the:rb.iections and contentions that rvould be raised on either side. I 3 . Accordingly, this writ petition is allowed. l, r: order as to costs. Miscellaneous applications pending, if an. shall srand closed. I s PONNA KRISHNA ANT REGISTRAR ,t //TRUE COPY// i ::iECTION OFFICER To, \ Hyderabad - 500004 T.S.,Govt. of lndia. New Delhi l.TheSecretary,Unionoflndia,DepartmentofRevenue"''linistryofFinance' z ioiit-commissioner of customs (lmports), GST Bhavan Elasheebagh, : ll|outv Commissioner of Customs, lCD, Timmapur - 50(11 25' Telangana ; 5;;;;i"t";aeniof Customs, (lCD-Timmapur) Hvderabarl r:)ustoms s. 6;;'CcU Snl. A<xnpEDDISRlNlvAS, Adlocirle IoF - ll 6. one cc to SRI N BHUI-iNU iriib'-oEpulv sorlct'' t-'R GEruERAL oF z. bn" cito sit oolltutc FERNANDES, sc FoR cBlt oPUCl B. Two CD CoPies Cohmissionerate. Hyderabad, Telangana - . rNDIA IOPUC] B IU/BSK ti t!#*€ HIGH COURT DATED:0711012025 ORDER WP.No.30373 of 2025 .ra/.' l\ r il[I ?ffi \ 'ai- ALLOWING THE WRIT PETITION WITIiOUT COSTS \r{ { I