Provisional Release Granted in Customs Seizure Case Subject to Enhanced Duty and Safeguards

Copy Tech Solutions Vs Commissioner of Customs (Telangana High Court)

The writ petition challenged a seizure memo dated 28.01.2026 issued by Customs authorities and sought immediate release of an imported consignment of 239 multifunctional devices covered under a specific Bill of Entry dated 09.01.2026.

The Court noted that it had previously dealt with several writ petitions involving identical issues relating to seizure of imported goods and requests for provisional release. In those matters, the Court had granted conditional interim relief permitting release of the seized goods subject to compliance with specified safeguards.

Reference was made to an earlier case where similar goods were seized and the High Court had directed provisional release upon fulfillment of conditions. Those conditions included payment of enhanced duty, furnishing of a bank guarantee, and compliance with procedural safeguards. After the importer complied, the goods were released. That order was later challenged before the Supreme Court of India through a Special Leave Petition, but the Supreme Court declined to interfere. However, it clarified that adjudication proceedings could continue independently in accordance with law and with participation of the importer.

Following the Supreme Court’s order, similar writ petitions pending before the High Court were disposed of on comparable terms, allowing provisional release while leaving adjudication open.

In the present case, the Court observed that the matter was at the stage of a seizure memo and the petitioner was only seeking interim release of the seized goods. Considering the factual similarity with earlier cases, the Court held that the writ petition could be disposed of at the admission stage itself, while safeguarding the powers of the adjudicating authority.

Accordingly, the Court directed the Customs authorities to pass orders on the petitioner’s application for provisional release subject to the following conditions:

1. Payment of Enhanced Duty
   The petitioner must pay or deposit the enhanced duty amount. Once this amount is paid, the goods must be released within four weeks.

2. Time-bound Quantification
   Customs authorities must quantify the payable duty within one week from receipt of the Court’s order. Upon such quantification, the petitioner must immediately pay the amount in full. After complete payment, release of the goods must be effected within a maximum period of four weeks.

3. No Bar on Adjudication
   The order for provisional release will not prevent the Customs Department from continuing further proceedings, including adjudication, in accordance with law.

4. Demurrage Waiver Request
   If the petitioner files an application seeking waiver of demurrage charges accrued till date, the authorities must consider and decide the request objectively.

In addition to the above, the Court imposed further safeguards:

• The petitioner must furnish a bank guarantee equal to 10% of the total value of the imported goods.

• If, after provisional release, the petitioner sells the goods to customers, full transaction details — including customer details, prices, and transaction particulars — must be maintained and made available to Customs authorities as required.

The Court clarified that the adjudicating authority, while deciding the case on merits, must not be influenced by the High Court’s order granting conditional provisional release. The authority must independently consider the objections and contentions of both sides.

With these directions, the writ petition was allowed. No order as to costs was made, and all pending miscellaneous applications stood closed.

FULL TEXT OF THE JUDGMENT/ORDER OF TELANGANA HIGH COURT

Heard Mr. Mohd. Anwar Ali, learned counsel representing Mr. Malla Reddy Gadipally, learned counsel for the petitioner and Mr. Dominic Fernandes, learned Senior Standing Counsel for the CBIC appearing for the respondents. Perused the record.

2. The instant writ petition has been filed assailing the seizure memo dated 28.01.2026, issued by the 4th respondent with further request to forthwith release the imported consignment of the multifunctional devices (239 units) under Bill of Entry No. 6794290 dated 09.01.2026.

3. Similar 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 fulfilling certain conditions.

4. One such writ petition is W.P. No. 12489 of 2025; where the goods imported were seized by the Customs authorities and by virtue of the interim order of this High Court the Customs authorities were ordered to release on the following conditions. For convenience, we reproduce paragraph Nos. 26 & 27 of the order passed in the aforesaid writ petition hereinunder:

26. 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 pay/deposit 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) It is further made clear that so far as the condition of the petitioner that demurrage 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.

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 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 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. 42808/24, 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 concerned, 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 adjudicating proceedings.

7. Pursuant to the disposal of the SLP, this Court has disposed of all such writ petitions whereby the goods were released and the proceedings were pending before the adjudicating authority.

8. Similar nature of facts are also there in the instant case also where the stage at this juncture is only the seizure memo and prayer is also only for an interim release of the seized goods.

9. In the factual matrix narrated in the preceding paragraphs, we are of the considered opinion that the instant writ petition also therefore can be disposed of at 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 pay/deposit 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) It is further made clear that so far as the condition of the petitioner that demurrage 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.

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. Further, 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 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 manner influenced by the order of 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 Petition is allowed. There shall be no order as to costs.

Miscellaneous applications pending, if any, shall stand closed.