M/s. Copy Tech Solutions v. The Commissioner of Customs

The Assistant Commissioner of Customs, O/o Dy. Commissioner of Customs. lCD. Thimmapur, Ranga Reddy -509 325. The Superintendent of Customs, O/o Dy. Commissioner of Customs. lCD. Thimmapur, Ranga Reddy -509 32 ..RESPONDENTS 2 3 4 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 issue an order or direction more particularly one in the nature of a WRIT OF MANDAMUS declaring the action of the Respondent No.1 to 4 in seizing the various models of Second-hand Highly Specialized Equipment, Digital Multifunction Print and Copying Machines, imported by the Petitioner i.e - M/s. Copy Tech Solutions, vide seizure Memo dated 11.11..2025 and refusal to allow the clearance of the subject goods covered by vide Bill of Entry No.5260559 dated 23.10.2025 (118) units payment of applicable total duties on the declared value as arbitrary, unreasonable, contrary to the provisions of the Customs Act 1962, the lmport-Export Policy 2023. Meity Notification S C. No.2844(E) dated 01 .O7.2021 by duly setting aside the seizure memo anc panchanama and Supardnama dt. l1.11 .2025 of 4th respondent is in vic,lation of petitioners fundamental rights guaranteed by Article 14, 19(1Xg) and 300,4 of the Constitution of lndia and to direct the Respondent to release the subject goods forthwith on applicable duty by granting waiver of demurrage r;harges. lA NO: 1 OF 2025 Petition under Section 151 CPC praying that in the rircumstances 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 Highly Specialized Equipment, Digital Multifunctior Print and Copying Machines, imported by the Petitioner i.e M/s. Copy Tech Solutions, and which have been submitted for clearance before the Respondents 1 to 4 vide Bill of Entry No.5260559 Cated 23.1O 2025 (118) Units, on payment of applicable duty Counsel for the Petitioner: SRI MOHD ANWAR ALl, REP. FOR SRI MALLA REDDY GADIPALLY Counsel for the Respondents: SRI DOMINIC FERNANDES, Sr. SC FOR CBIC The Court made the following: ORDER w THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND TIIE HONOURABLE SRI JUSTICE SUDDALA CHALAPATHI RAO W.P.No.344 24 of 2025 ORDER (per IIon'blc Sri Justice P Sam Koshy) Ileard Mr. Mohd. Anwar AIi, Ieamed counsel representing Mr. Matla Reddy Gadipalli, Ieamed counsel lor the petitioner and Mr.Dominic Femandes, leamed Senior Standing Counsel for CBIC' appearing for the respondents' Perused the record'

2. The instant rvrit petition has been filed assailing the seizure rnemo dated 11.11.2025, issued by the 4th rcspondent with further request to forthwith release various models ol secondhand highly specialized equipment-Digital Multifunction Print' Copying and Scanning machines ( t 18) Units imporled by the petitioner and which have been submitted for clearance belore respondents vide Bitl of Entry No.5260559, dated23'10'2025'

3. Simitar 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 fu lfil I ing certain conditi ons' 2

4. One such rvrit petition is W.p.No.l24 g9 ot 2025; where the goods imported were seized by the Customs atrr.horities and by virtue of the interim order of this High Corrrt, the Customs authorities u,ere ordcred to release on the followir.q conditions. For convcnience, we reproduce paragraph Nos.26 & 27 of the order passed in thc albresaid u,rit petition hereinunder:

26. Thus. lbr all thc aloresaid rea-sons, it is orderc,l that let thc rcspondcnt authorities pass an order on the applicarion filed b1, the peritioncrs lor provisional releasc of the goods subject to thc conditions lhat: l)'fhe pcritioner shall payldeposit thc enhanced cury anlount. On reccip[ ol such eniancod duty amount paid by thc pctitioners, thc goods in question shall be released rvithin a pcriod of fbur (04) ri,eeks thcreafter b) For pal,ment ofsuch duty, quantification shali hc rns4s 6y the (lustonts forthu-ith within onc (01) week lrorn hc date of receipt of a copy of this order. On receipt of such tlrr:nrification. the payment shall be immediately made by the petitiorrers and on receipt of the payment in cntirety, the goods sha bc -ereased indicated abovc ar the outer limit of four (04) weeks. c) It is made clear that this order will not stand in the wa), lbr Customs Dcpartment to go ahead with the further pr oceedings including the adjudication in thc manner krown to lau,. d) It is lurther made clear that so lar as the condirron of the petitioner thar demmurage charges till date, for J.he goods be considered fbr r.taiver, in_this regard, if any applifition is filed bv 3 the petitioners seeking such a waiver of demmurage charges, the be considered and decided by the respondents samc shall objectively.

27. ln addition, the pctitioners are also directed to provide a bank guarantee worth l0 percent ol thc total price of the goods irnported by them. Further. it is also ordered that in the event if the petitioners upon rclease of the goods provisionally make and sell the supply to their customers, details of the customers that of rclevant price and details of the respective transactions shall be maintaincd and made availablc to the respondent authorities tiom time to ttme

5. Pursuant to the said interim direction and upon the petitioner therein fultllling the conditions stipulated by the High Court, the seized goods were released to the petitioner. The said order ol releasing of the goods was subjected to challenge before the Hon'ble Supreme Court; where the Hon'ble Supreme Courl irr SLP.No.42808 124, dated, 15.01 .2025, has refused to interfere with the order passed bY this Bench.

6. However, as regards the proceedings before the adjudicating authority is concemed, 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 rvrit petitions wherebv the goods werc r.eleased and the proceedings u,cre pending before the adjudicating rruthority.

8. Sirrilar nature ol facts are also therc in thc instant case also rvhere the stage at this.juncture is only the seizure rnemo and prayer is also only for. an interiur release ol the seized goo<1s.

9. In the tlctuai matrix narrated in the precedinu oaragraphs, we are of the considered opinion that the instant rr rit petition also therefore can be disposed of at the admission stage tself. Reserving the right of the adjudicating authority to take appr,tpriate decision in the proceedings after permitting the petitioner to represent before the adjudicating authoritv:

10. Thus, lor all the aloresaid reasons, it is orde recl that let the respondent authorities pass an or.der on the applicatior filed by the petitioner lor provisional release of the goods subject to the conditions that a) The petitioner shall payldeposit the enhanced duty amount. On receipt of such enhanced dutr am6un1 paid by the peritioners, the goods in question shall be released within a period of four (04) weeks rhereafter. 5 b) For payment of such duty, quantihcation 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 [aw. d) It is further made clear that so far as the condition of the petitioner that demurrage charges till date, fbr the goods be considered for waiver, in this regard, if any application is fited by the petitioners seeking such a rvaiver of demurrage 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 10 percent of the total price of the goods imported by them. Furlher, it is also ordered that in the event if the petitioner upon release of the goods provisionally makes and sell the supply to their customers, details of the customers that of relevant price and / i \ 6 details of the respective transactions shall be maintained and made 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 tnanner influenced by the order ol 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 petrtion is allowed. No order as to costs. Miscellaneous applications pending, if an1, shall stand closed. //TRUE COPY// SDA G. JYOTHI ASSISTANT REGISTRAR e SECTION OFFICER To, BS

1. The Commissioner of Customs, (Hyderabad ll) lmports, GST Bhavan, Opp. L.B.Stadium, Basheer Bagh, Hyderabad- 500004.

2. The Joint Commissioner of Customs, (lmports), Opp. L.B. stadium, GST Bhavan, Basheerbagh, Hyderabad- 500004.

3. The Assistant Commissioner of Customs, O/o Dy. Commissioner of Customs. lCD, Thimmapur, Ranga Reddy -509 325.

4. The Superintendent of Customs, O/o Dy. Commissioner of Customs. lCD. Thimmapur, Ranga Reddy -509 32

5. One CC to SRI MALLA REDDY GADIPALLY, Advocate IOPUC] 6. One CC to SRI DOMINIC FERNANDES, Sr. SC FOR CBIC [OPUC] 7. Two CD Copies a HIGH COURT DATED: 1311112025 CC TODAY ORDER WP.No.34424 of 2025 ! r, v) (r .3 I ()' .$' .:\" 7 * .f'.-',/ \ !,+' ALLOWING THE WRIT PETITION, WITHOUT COSTS t-\ ,\(