M/s. Copy Tech Solutions v. 1. The Commissioner of Customs

Petition under Article 2226 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 Multi function Print and Copying Machines, imported by the Petitioner i.e - M/s. Copy Tech Solutions,vide seizure Memo dated 16 12.2025 and refusal to allow the clearance of the subject goods covered by vide Bill of Entry No.6202474 dated 10.12.2025 (111) units payment of applicable total dr- ies on the declared value as arbitrary, unreasonabre, contrary to the provisionr; of the customs Act 1962, the lmport-Export policy 2023, Meity Notification S,l No.2844(E) dared 01 .07 .2021 by duly setting aside the seizure memo ar ( panchanama and Supardnama dt 16 12-2025 0f 4th respondent is in vic r rtion of petitioners fundamentat rights guaranteed by Article 14, i9(1)(g) and 3004 of the constitution of lndia and to direct the Respondent to rereas t the subject goods forthwith on applicable duty by granting waiver of demurrage I rarges. lA NO: 1 OF 2025 Petition under section 151 cpc praying that in the circu nstances stated in the affidavit fired in support of the petition, the High court r ray be preased to direct the 1 to 4 respondent to provisionally release various rrodels of Second- hand Highry speciarized Equipment, Digitar Murtifunction print & copying Machines, imported by the petitioner i.e M/s. copy Tech So .rtions, and which have been submitted for crearance before the Respondents to 4 vide Bi, of Entry No 6202474 dated 10.12.2025 (111) Units, on payment cf appricabre duty. counsel for the petitior"., ALt FoR Mr. trr, ILLA REDDY B;,SIBXIiANWAR Counsel for the Resoondents: MT.SASHANK DUNDU FOR Mr.t OMINIC FERNANDEs, sEN toR sTANDING aou-r.ii-ilI6n cerc The Court made the foilowing: ORDER IN THE HIGH COURT FOR THE STATE OF TELANGANA AT ITYDERABAI) THE HONOURABLE SRI JUSTTCE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE SUDDALA CHALAPATHI RAO W.P.No.39276 OF 202s

22.t2.2025 Between: M/s.Copy Tech Solutions, Rep.by its Proprietor Mrs.Rashmi Chhajer Wo.Pumachander Balne. And .. Petitioner The Commissioner of Customs (Hyderabad II) Imports, GST Bhavan, Opp: L.B.Staduium, Basheer Bagh, Hyderabad and 3 others ....Respondents ORDER: (per Hon'ble Sri Justice P.Sam Koshy) Heard Mr.Mohd.Anwar Ali, leamed counsel representing Mr.Malla Reddy Gadipally, leamed counsel for the petitioner and Mr.Sashank Dundu, leamed counsel representing Mr.Dominic Fernandes, learned Senior Standing Counsel for the CBIC appearing for respondents. Perused the record. 2

2. The instant writ petition has been filed assajl ng rhe seizure memo dated 16.12.2025, issued by the 4'h respor lent with the further request to forthwith release the imported cons gnment of the multifunctional devices (11 I units) under Bill of Enrr t No.6202474 dated 10.12.2025.

3. Similar writ petitions of identical nature hav: already been considered by this Bench wherein by way of a conili ional interim order this Bench had permitted the release of seized loods subject to the petitioner/importer fulfilling certain conditions.

4. One such writ petition is W.P.No.l2489 of 201 5; where the goods imported were seized by the Customs authr,r ities and by virtue of the interim order of this High Court, t te Customs authorities were ordered to release on the following c,r rditions. For convenience, we reproCuce paragraph Nos.26 & 2i \f the order passed in the aforesaid writ petition hereinunder:

26. Thus, for all the aforesaid reasons, it is ordered thiti let the respondent authorities pass an order on the applicatior iled by the petitioners for provisional release of the goods sublec to the conditions that: a) The petitioner shall pay/deposit the enhanced duty amount. On receipt of such enhanced duty amount pald 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 (0'l) week from the date of receipt of a copy of this order. On receipt of such quanttficatton, 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 limat of four (04) weeks. 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 ad.judication in the manner known to law. d) lt 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.

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 respective transactions shall be maintained and made available lo 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 4 ...1 seized goods were released to the petitioner. The said order of releasing of the goods was subjected to challerle before the Hon'ble Supreme Court; where the Hon'ble Supr,me Court in SLP.No.42808 124, datedl5.0l .2025, has refused to nterfere with the order passed by this Bench.

6. However, as regards the proceedings before tJr : adjudicating authority is concerned, the Hon'ble Supreme Cour, oermitted the adj udicating authority to proceed and decide the sr ne strictly in accordance with law. The petitioner is also helc entitled for participation in the adjudicating proceedings

1. Pursuant to the disposal of the SLP, this Courl has disposed of all such writ petitions whereby the goods were re I :ased and the proceedings were pending before the adjudicating autt lrity.

8. Simitar nature of facts are also there in the ins ant case also where the stage at this juncture is only the seizure mer ro and prayer is also only for an interim release of the seized goods.

9. In the factual matrix narrated in the preceding p; ragraphs, we are of the considered opinion that the instant writ petition also .,,/ 5 therefore can be disposed ofat the admission stage itself. Reserving the right of the adjudicating authority to take appropriate decision in the proceedings after permitting the petitioner to represent before the adjudicating authority:

10. Thus, 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 subject to the conditions that: 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) lt is made clear that this order will not stand in the way for Customs Department to go ahead with the 6 further proceedings including the adjudicatic I in the manner known to law. d) It is further made clear that so fir; as the condition of the petitioner that demurrage chr rges till date, for the goods be considered for waiver in this regard, if any application is filed by the pr:itioners seeking such a waiver of demurrage charges, I le same shall be considered and decided by the reslondents objectively.

11. In addition, the petitioners are also directed to c ovide a bank guarantee worth l0 percent of the total price of the gi ods imported by them. Further, it is also ordered that in the event if I re petitioners upon release of the go-ods provisionally makes and sell the supply to their customers, details of the customers that of rele v rnt price and details of the respective transactions shall be maintair :d and made available to t}e respondent authorities from time to tirt :

12. Needless to mention that the adjudicating aut rority in the process of deciding the same would not be in lny manner influenced by the order ofconditional release ordered t y this Court. The authority shall decide the same considering the cl jections and contentions that would be raised on either side. 7

13. Accordingly, this writ petition is allowed. There shall be no order as to costs. Miscellaneous applications pending, if any, shall stand closed. SD/. P.C.SULEKHA DEVI s STANT REGISTRAR //TRUE COPYII CTION OFFICER To,

1. The Commissioner of Customs, (Hyderabad ll) Imports, 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, Thimmipur, Ranga ReddY -509 325

5. One CC to SRI MALLA REDDY GADIPALLY' Advocate [OPUC] 6. One CC to SRI DOMINIC FERNANDES, SENIOR STANDING COUNSEL FOR CB|C [OPUC]

7. Two CD CoPies PMK BS tM, HIGH COURT DATED:2 211212025 .. ? .4,-' - ,. i r1L -\ i^..-;- --,- -, .' - r\\\ . , . ). - _.,.r. ,S '.'.., - i,) 24 0rl ! i.i! ^,,llil.-r .., rl-';; :1 . is".:.-' ORDER WP.No.39276 of 2025 ALLOWING THE WRIT PETITION WITHOUT COSTS q ,6 v/