M/s. Digital Print Solutions v. The Ministry of Electronics and lnformation Technology 6 Lodhi Road

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.2 to 5 in seizing the various models of Second-hand Highly Specialized Equipment - Digital Multifunction Print, Copying and Scanning Machines, imported by the Petitioner vide seizure Memo dated 10 .11 .2025 and refusal to allow the clearance of the subject goods covered by vide Bill of Entry Nos.5212205 dated

20.1O.2025 (233 Units) on 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 O. No.2B44(E) dated 01 .07.2021 by duly setting aside the seizure memo and panchanama and Supardnama dt.'1 0.11 .2025 of Sth 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 relezrse the subject goods forthwith on applicable duty by granting waiver of demurrage charges. 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 2 to 5 respondent to provisionally release varioLrs models of Second- hand Highly Specialized Equipment - Digital Multifunctiorr Print, Copying and Scanning Machines, imported by the Petitioner and which have been submitted for clearance before the Respondents 2 to 5 vide Bill of Entry Nos.5212205 dated 20.10.2025 (233 Units), on payment of applicable duty. Counsel for the Petitioner: SRI MOHD. ANWAR ALl, REP. FOR SRI MALLA REDDY GADIPALLY Counsel forthe Respondent No.1: SRI B.MUKHERJEE, REP. FOR SRI N.BHUJANGA RAO, DEPUTY SOLICITOR GENERAL OF INDIA Counsel forthe Respondent No.2 to 5: Ms. PRAVALIKA GOUD, REP. FOR SRI DOMINIC FERNANDES, Sr. SC FOR CBIC The Court made the following: ORDER THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE SUDDALA CHALAPATHI RAO W.P.No.34607 OF 2025 ORDER, (per Iton ble Sri Justice P.Sam Koshy) I{eard Mr. Mohd. Anwar Ali, learned counsel representing Mr. Malla Reddy Gadipalli, leamed counsel for the petitioner, Mr. B.Mukherjee, learned counsel representing Mr. N.Bhujanga Rao, learned Deputy Solicitor General of India for respondent No.1 and Ms. Pravalika Goud, learned counsel reprcscnting Mr.Dominic Fernandes, leamed Senior Standing Counsel lor the CBIC, tbr respondent Nos.2 to 5. Penrsed the record.

7. The instant wriL petition has been filed assailing the seizure memo dated l}.ll.2}25, issued by the 5'h respondent with the further request to fbrthwith release the imported consignment of the multifunctional devices (233 units) under Bill of Entry No.5212205 dated 20.10.2025.

3. Similar writ petitions of identical nature have already been considered by this Bench wherein by way of a conditional interim 2 order this Bench had permitted the release of seized goods subject to the petitioner /imporler fulfilling ceftain condition.

4. One such *,rit petition is W.P.No.12489 of i1025; where the goods imporled were seized by the Customs autrorities and by virlue of the intcrirn ordcr of this Iligh Cour1. the Customs authorities u,ere oldered to release on the followine conditions. For convenience, u,c reproduce paragraph Nos.26 & -t-i of the order passed in the aloresaid rvrit petition hereinunder

26. ThLrs, 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 sLblect to the conditions that: a) The petitioner shall payldeposit the enhanced duty amount. On receipt of such enhanced duty amount oaid 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) weekr;. 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 3 d) It is further made cleaI 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 appltcation is filed by the petitioners seeking such a waiver of demmurage charges, the same shall be considered and decided by the respondents ob.iectively.

27. 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 make and sell the supply to their customers, details of the customers that of relevant price and details of the respectrve 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 seizcd 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.42808124, datedli.)l.2025, has refused to interfere with thc order passed by this Bench

6. However, as regards the proceedings before the adjudicating authority is concerned, the Hon'ble Supreme Court pemitted the adjudicating authority to proceed and decide the same strictly in 4 accordancc w'ith law. The pctitioner is also helC cntitled for participation in the adjudicating proceedings I . Pursuant to the disposal of tl're SLP, this Court has disposed of all such u,rit petitions rvhereby the goods were r,:leascd and the proceedings were pending before the adjudicating authority.

8. Similar naturc of lacts are also there in the instant case also where the stage at this jLrncture is only the seizure m,:mo and prayer is also only for an interirn release of the seized goods

9. In the factual matrix narrated in the preceding paragraphs, we are of the considered opinion that the instant wrLt petition also therefore can be disposed of at the adrnission stage itself. Reserving the right of the adjudicating authority to take apprcpriatc decision in the proceedings after permitting the petitioner to ropresent before the adjudicating authonty

10. Thus, for all the alorcsaid reasons, it is ordercd that let the respondent authorities pass an order on the application frled by the petitioners for provisional release of the goods subject 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 rvithin a period of fbur (04) weeks thereafter. b) For payment of such duty, quantification shall bc made by the Customs lorthwith 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 madc by the petitioners and on receipt of the payment in entircty, the goods shall be released as indicated above at the outer limit of four (04) weeks. c) It is rnade clear that this order will not stand in the way for Customs Department to go ahead with the further proccedings including the adjudication in the manner knorvn to law. d) It is lur1her r.r.rade clear that so far as the condition of the petitioner that demunage 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 demurrage charges, the same shall be considered and decided by the respondents objectively. I l. In addition, the petitioners are also directed to provide a bank guarantee worth l0 percent of the total price of the goods imporled by them. Further, it is also ordered that in the event if the petitioners upon release ol the goods provisionally r,rakcs and sell the supply to their customers, detaiis of the customers that of relevant price and details ol the respective transictions shall be maintained and rnade available to the respondent lruthorities from tlme to trme

12. Needless to rncntiorl that the adjudicating i,rrtholit), in the process of dcciding the same u,ould not be in an\,' manner influenced by thc order ol-conditional release ordcrcd try this Court The authority shall decide the same considering lhc objcctions and contentions that rvou [d be raised on either side

13. Accordingly, this writ petition is allorved.'flrcrc shall be no order as to costs Miscellaneous applications pending, if an v. shall stand closed. //TRUE coPY// SD/. AHMED ABDULLA KHAN ASSTSTANT R rctsTRAR secrr#orrrc.* The secretarv. Ministrv of Erectronic.s and rnformatior fechnorogy 6 Lodhi Road, cGo comptex, pragat Njgli, ri.*'odiriii'iildo I The Commissioner of Customs (Hyderabad ll) Imports GST Bhavan, Opp. L B Stadium, Basheer Bagn, Hvdeia5;;- i0tt04 """" ' The Joint Commissioner. of. Customs (lmports),Opo L.B. stadium, GST "'""' -,' " B havan. Basheerbagh, Hydera ba& s60b;04'. The Assistant Commissioner.of Customs, O/o Dy. Com.nissioner of Customs, lCD, Thimmapur- Ransa neoov oLi_6odi;d: "' ""' The Superintendent of Cus_lgmg,- g/o.Dy. Commissioner of Customs, ICD, Thimmapur - Ranga Reddy Dist-sb9irt' -"" " "'*'' One CC to SRI MALLA REDDY GADIpALLy Advocate [OpUC] One CC to SRt DOMINTC FERNANDES, Sr. SC FOR CB|C tOpUCl One CC to SRt N.BHUJANQA F4g, DEpUTy SOLtctrOR GENERAL OF lNDIA, High Court for the Srate or ieidng;;;rr'Hyl"eiaoa,t topucl To, 1

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9. Two CD Copies -}M { t CC TODAY HIGH COURT DATED: 1411112025 or-IE .$' s ORDER WP.No.34607 of 2025 TL \ )t ALLOWING THE WRIT PETITION, WITHOUT COSTS \\ \t{ u