M/s.Gaurik Enterprises v. Union of lndia

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 dtrection setting aside the Seizure Memo dated 06-11-2025 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 Petitioner's -----r.::eir...v?*-EE1''. tmported consignment of Multi-Functional Devices (MFD) or t 0 units under Bill of Entry dated 29-10-2025, bearing No. 5376907. lA NO:'l OF 2025 Petition under Sectron 151 cpc praying that in the c r )umstances stated rn the affidavit filed in support of the petition, the High court m r .be pleased to direct the 4rh Respondent to fodhwith provisionalry release the g. ris i.e., 110 Units of l\zlulti-Function Devises (lvFDs) which have been seized un i :r the Seizure [,4emo dated 06-11-?025. pending disposal of the present Wr. petition, else the Petitioner rvould suffer irreoarable loss and severe hardship. Counsel for the Petitioner: SRI AKKAPEDDI SRINIVAS Counsel for the Respondent No.1: Ms. T. SUHASINI, REPRt SENTING SRI N. BHUJANGA RAO, DEPUTY SOLIC|TOR GENt: IAL OF tNDtA Counsel for the Respondent Nos.2 to 4: Ms. RUCHITHA K. I EpRESENTING SRI DOMINIC FERNANDES, SENIOR S.C. FOR CENI i AL BOARD OF INDIRECT TAXES AND CUSTOMS The Court made the following: ORDER THE HONOURABLE SRI.IT]STICE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE SUDDALA CHALAPATHI RAO W.P.No.34820 OF 2025 ORDER: (per Hon ble Sri,lustice P.Sum Koshl'1 Heard Mr'. Akkapeddi Srinivas, learned counsel lor the petitioner, Ms. 't.Sul-rasini, learned counsel representing Mr. N.Bhujanga Rao, Iearned Deputy Solicitor General of India fbr respondent No.l and Ms. Ruchitha K, leamed counsel representing Mr-Donrinic Fetnandes, learr-red Senior Standing Cor-rnsel tbr thc CRIC, lor respotrdent Nos.2 to 4. Perused the record

2. l'he instant writ petition has been filed assailing the seizule memo dated 06.11.2025, issued by the 4tr' respondent with the turther request to forthwith release the imported consignment ol the r.nulritunctional clevices (110 units) under Bill of Entry No 5376907 dated 29.10.2025.

3. Similar writ petitions of identicat nature have already been considered by this Bench wherein by way of a conditional interim order this Bench l.rad permitted the release of seized goods subject to the petitioncr/importer fulfilling cerlain conditions' 2 ,,_.ta

4. Onc such rvr.it petition is W.p.No.124g9 of 202_5; rvhere thc goods imported rvere seized b1, thc Customs i1 t|orities a1d by virlue of the rnterim order ol this High Ctl I t, the CLrstoms a'tho.itics rvere ordercd to rerease on the forio*,irr ;co'rditions. For convcnicnce. wc reproduce paragraph Nos.26 & 27 of the order passed in thc afbresaid u,rit petition hcreinunder:

26. Thus, for all the aforesaid reasons, it rs orderrrr that let the respondent authorities pass an order on the appli(:i tion filed by the petitioners for provistonal release of the goods s rbject to the conditions that: a) The Detitioner she payideposit the enr )nced duty amount. On receipt of such enhanced duty amount caid by the petitioners, the goods in question shall be relea j rd withrn a period of four (04) weeks thereafter. b) For payment of such duty quantification shall the Customs forthwith within one (Ol ) week frorn receipt of a copy of this order. On receipt of such qu the payment sha be rmmediately made by the peti on receipt of the payment in entirety, the goods shall I as indicated above at the outer limit of four (04) weetir e made by ne date of lntification, ioners and e released c) lt is made clear that this order will not stand lr he way for Customs Department to go ahead with the further : oceedings including the adludication in the manner known to lavr d) lt is further made clear that so far as the conl tion of the petitioner that demmurage charges till date, for th _, goods be considered for waiver, in this regard, if any applicaticr is filed by the petitioners seektng such a waiver of demmurar;r cha rg es, 3 the same shall be considered and decided by the respondents objectively.

27. ln addition, the petittoners are also directed to provide a bank guarantee worth .10 percent of the total price of the goods lmported by them. Further, it ts 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 available to the respondent authorities from time to time.

5. Pursuant to tlte said interim direction and upon the petitioner therein fulfilting the conditions stipulated by the I Iigli Cour-t, tl.re seized goods wcre released to the petitioner. The said order of releasing ol the goods was subjected to challenge belole thc llon'ble Supreme Court; where the Hon'ble Supreme Courl in SLP.No.42808il4, dated15.01.2025, has refused to intert-ere with the order passed by this Bench.

6. Howevet', as regards tl.re proceedings before the adjudicating authority is concerned, the Hon'ble Supreme Court pennitted the adjudicating authority to proceed and decide the same strictly in accordance witl'r law. 'lhe petitioner is also held entitled for parlicipation in the adjudicating proceedings. 4 .'..J, i. Pursuant to the disposal of the SLp, this (j rurt has disposed of all such writ pctitions u,'hereby the goods i.r,cr c released and the proceedings u.erc pending be lore the adjudicatin-r rrthority. 8 Similar naturc ol fhcts are also ther.e in th,: instant case also rvhere the stage at this junctur.e is only the sejzur.c r iemo and praver is also on11. for an interim relcase of the seized eoc,i s.

9. In the facrr-rai matrir nerrated in the precetirr 1 paragraphs, we are of the considered opinion that the insranl r,, it petition also therefore can bc disposed of at thc adr-nission stage _sel1. Resen,ing the right of the acljudicating authority to take alrp - ,priate decision in the p.occedings after permitting the petitioncr to r:present before the adjudicating a urhori t;,:

10. Thus, lor all the a{bresaid reasons, it is orrl: ed that let the respondent authorities pass an order on the applicar irn filed by thc petitioners lbr provisional release of the goods Lrb.ject to the conditions that: a) The peritioner sha[ payldeposit the i rhanced duty amount. On receipt of such enhanced dutl amount paid by the petitioners, the goods in questior ;hall be releasecl within a period of four (04) weeks ther t rfte.i-. 5 b) For payment of such duty, quantification shall be made b)' thc Custorns forthri'ith within one (01) week fronr Lhc clate of receipt of a cop)' ol this order. On rcceipt ol' sr-rch quantilication. the payrnent shall be irnrnediately' n'ratle by tl-rc petitioners and on rcceipt ol thc palrttcnt iu erttirety, thc goods shatl be released as inciicateci above at the outer Iinrit ol lour (04) weeks. c) lt is madc clear that this ordcr t'ill not stand in the ri'ay lbl C'ustouts Dcpartnlcnt to go ahead u'ith the Irrrther proccedings includirrg thc acljudication in the nranner kno*,n to [arv. cl) It is turther madc cleal that so far as the condition ol- the pctitiorler that detnurrage charges till date, Ibr thc goods be considered lor waiver; in this regarcl, il any application is flled by the petitioners sc'ck ing such a u aivct' of dctllttrrage charges. the same shall bc considelcd and decidcd by the respondents obj cctir e lr'. I l. In addition, tl'rc p.'titioners are also directed to provide a bank guarantee rvorth l0 per-cent ol the total price of the goods imported I by thcm. Further, it is also ordeled that in the event if the petitionels upon release ol the goods provisionally makes and sell !{ the supply to their customers, details of the customers that ol relevant price and details ol thc respective transactions shall be 6 nraintained and made ar,ailable ro the respondel I authorities liont trrlle [o t trc ll. Ncctlless 1o rnenrion that thc adjudicatrni. uutltor.it' in tirc proccss of dcciding the sante tvould not b: il .rnv ntanner. influenced .r'the o.crcr orconditional relcase ordrr :d b_r rhis coLrr.t. I'lte author-it1, shall dccide rlie sante considcring t r: objections and colrtentions lltat u oLrld be raiscci on either side. l, Acco'clingl1,. this ri,rit ltetitro, is allou.cd. .l I . rc sliall bc n. olrler as to costs Misccllancous applicetions pending. il a slrall stand closed SD/.C. DEEPIKA ASSi STANT REGISTRAR G //TRUE COPY// To SECTION OFFICER 1 The Secretary,. Department of Revenue, Ministry of l: r ancer Govt. of lndia, Union of lndia, New Delhr

2. The Joint Commissioner of Customs, (lmports) GST i ravan, Basheebagh, Hyderabad - 500004

3. The Deputy Commissioner of Customs ICD, Timmapur, ;09325, Telangana 4. The Superintendent of .Customs (lCD-Timmapur), lvderabad Customs Co m m iss io ne rate, Hyderabad, Telangana

5. One CC to SRI AKKAPEDDT SRIN|VAS, Advocate [Opt, )l 6. One CC toSRl N BHUJANGA RAO, Deputy Sotict r General of tndia IoPUCI

7. One CC to SRI DOMINIC FERNANDES, Senior S.C or Central Board of lndirect Taxes and Customs [OPUC]

8. Two CD Copies MP LS HIGH COURT DATI iD:1711112025 i(]m i ORDER WP.No.14820 of 2025 ALLOWING THE \AI ?IT PETITION WIl'{OUT COSTS & rtla{