WP/7128/2026 of M/s. Digital Print Solutions Vs The Commissioner of Customs (Hyderabad II) Imports on 9 March 2026

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, 0/0 Dy. Commissioner of Customs, lCD, Thimmapur, Ranga Reddy-509 325

4. The Superintendent of Customs, 0/o Dy. Commissioner of Customs, lCD, Thimmapur, Ranga Reddy-509 325 ...RESPONDENTS 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, Copying and Scanning Machines, imported by the Petitioner vide seizure Memo dated 05032026 and refusal to allow the clearance of the subject goods covered by vide Bill of Entry No.7545796 dated 16.02.2026

(211) 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.O. No.2844(E) dated 01.07 .2021 by duly setting aside the seizure memo and panchanama and Supardnama d105.03.2026

of 4th respondent is in violation of petitioners fundamente I rights guaranteed by Article 14, 19(1Xg) and 3004 of the Constitution of lnc a and to direct the Respondent to release the subject goods forthwith on appl < able duty by granting waiver of demurrage charges. lA NO: 1 OF 2026 Petition under Section 151 CPC praying that in the ;ircumstances stated in the affidavit filed in support of the petition, the High Co" t may be pleased to direct the 1 to 4 respondent to provisionally release vario.r ; models of Second- hand Highly Specialized Equipment - Digital Multifunr:ion Print, Copying &Scanning Machines, imported by the Petitioner and whicl- rave been submitted for clearance before the Respondents 1 to 4 vide Bill of Ent y No.7545796 dated 16.02.2026 (21'l ) Units, on payment of applicabte duty. Counsel for the Petitioner: SRI MOHD. ANWAR ALt FOR SF I MALLA REDDY GADIPALLY Counsel for the Respondents: SRI DOMINIC FERNANDES. ,enior standing counsel for CBIC The Court made the following: ORDER

R IN l'HI] HIGH COURT FOR THE ST,{TE OF TELANGANA AT fIYDERABAD 1'IIE, HONOURABLE Szu JUSTICE P.SAIVT KOSHY AND TI{E HON0URAI]LE SRI JUSTICE NARSING RAO NANDIKONDA WP.No.7l28 of 2026 Date:09.03.2026 Betw een: M/s.Di-sital Frint Solutions, Rep.b.r.- \ilanugin g Partner. Abids, l{,vderabad. ... Petitioncr And T'hc (,'orrr,r issioncr of Custotns. (Hyderabad II) Impolls. lJ1'rlcrabad and others ...Respondents ORDER: tJ;er llon'ble Sri Justicc I'.Sant Koshy) Fleattl N4r.Mohd.Anwar Ali, teamed counsel representing Mr.Malla Reddy Gadipally, leamed counsel for the petitioner and Mr.Donrinic Fcrnandes, learned Senior Standirtg Counsel for the CBIC appearing for the respondents. Perused the record'

2. The instant writ petition has been filed assailing the seizure merno datL'(l 05.03.2026, issued by the 4tr' respondent with further request to ibnhwith release the various models of Second hand Highly Speciatized Equipment-Digital Multifunction Print,

Copying & Scanning machines (211 units) unclcr' []ili ol- Eintry No. 7 545 796. r.lared, I 6.02.2026

3. Similar r,,'rit petitions pf identical nature ltl airi:adv been considered b_v- lhis Bench wherein by way of a cot r ilii,rial itrtcritl order this Bench had permitted the release of seizc: g<'ods sribject to the petitioncr/importer fulfilling certain condition -

4. One such writ petition is W.P,No. 12489 of . l.'.: v'hcre the goods importetl rvere seized by the Customs aut r irili.r-s arid by virtue of the iuterim order of this l{igh Cour'. tlr: Custorns authorities vvere ordered to release on the followiqp r',ntiitions. l:or convenience. lve reproduce paragraph Nos.26 & ct thc order passed in the afirresaid writ petition hereinunder:

26. Thus, for all the aforesaid reasons, it is ordered' rrt iet the respondent authorities pass an order on the applica r n trii-.d by the petitioners for provisional release of the goods st t e:I ro the conditions that:

a) fhe petitioner shall pay/deposit the enh:r cr::r) dut! amount. On receipt of such enhanced. duty amount r rro ty thr petitioners, the goods in question Shall be releast witlrin a period of tour (04) weeks thereafter. .

b) For payment of such duty, quantification shall ir, sds 6y tr oale oi the Customs forthwjth within one (01 ). week from 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 tn the way for Customs Department to go ahead with the further proceedings including the adiudication in the manner known to law'

d) It is further made clear that so far as the condition of the petitioner that demmurage charges tilt 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. ln 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 rnake 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 avarlable to the respondent authorities from time to time.

5. Pursuant to the said interim direction and upon tl're petitioner therein lirlfilling the conditions stipulated by ttre [{igh Court, the seized goods , /ere 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 Suprerne Court in SLP.No.42808i24, datedl5.0 1.2025, has refused tr ;ntcr.ftre with the order passcd by this Bench.

6. Howe\rel', as regards the proceedings before i t atlirrtlicating authority is concerned, the Hon'ble Supreme Cou l.,clrt-ritted the adjudicating authority to proceed and decide the ; tnc strictly in accordance rvith law. The petitioner is also ht I I crrtitled lbr participation ir the adjudicating proceedings

7. Pursuant to the disposal of the SLP, this CoL r has tlis;roscd of all such r," rit petitions whereby the goods were I : ,.:llri'Jd and the proceedings u,e re pending before the adjudicating ar. I r(,rir\'

8. Sin'rilar nature of facts are also there in the irr lrit.tt ,:ase also where the stagc a1 this juncture is only the seizttre nt .l tto itnd prayer is also only frrr an interim release ofthe seized good,

9. In the 'irctual rnatrix narrated in the preceding i rrelar-.rtrhs, we are of the considered opinion that the instant wr r petition also therefore can be disposed of at the admission stage ilr -'11. Rcsen,ing the right of the adjudicating authority to take applc l r'iate decision in the proceedings after permitting the petitioner to represent before the adiudicating authoritY:

10. 'l-htrs. lbr all the aforesaid reasons' it is ordcred that let the respondent autholities pass an order on the application filed by the petitioner fbr plovisional release of the goods subject to the conditions that a)'the petitioner shall payldeposit the enhanccd duty 0,rr.,,*,. On'receipt of such inhanced duty atnount paid by t"rr.' p"iitf*.*, tih" goodt in question shall bc rcleascd u,ithin a period of four (04) weeks thereafter'

b) ['(]r payment of such duty, quantification shall bc ,"ri. t:'i,lttstoms forthwith within onc (01) *eck fiom tf-," .f rt" of r"""ipt of a copy of this order' On.receipt of such ouantitication, the payrnent shatl be immediatell' made by il;;i;;;;t; and on'receipt of the- pavrnent in entiretv' the g""[. .fr"ir be released as indicated above at the c'rutcr limit o{' fbur (t)4) weeks.

c) lt is made clear that this order r'r'itt not stand in the rval lbr Customs Departrnent to go ahead rvith the {urther fr,i.".'.ting. including the adjudication in the tlanncr knor'vn to Iarv. tl) lt is furthcr madc clear that so far as lhe corrditiou of thc fctitioner that demurrage charges till.date' li" :l: S::1: bcconsidercdforwaiver,inthisregard'ifan5appltcattonts iii"A Uy the petitioners seeking such a.waiver ol- demurrage "h"r#. ,n"'*me shall be considered and decidcd b1' the respondents objectivelY'

11. ln adclition, the petitioner is also directed to provide a bank guarantee u'orth ten percent ofthe total price of the goods imported a. by them. Further, it is also ordered that in the evenr if the pctitioner upon releasc of the goods provisionally makes and s .ll the supplv to their custonrers, details of the customers that of rt I 'vani ytlicc and details of the respective transactions shall be maint inerJ and rnade available to the lespondent authorities from time t() [ me 12 Needless to mention that the adjudicating r rthoritv in the process of deciding the same would not be i ilr)' lnarlner. influenced b1, the order of conditional release order(', bv liris (-.ourt. The authorily shail decide the sarne considering thtr rbicr;r ions and contentions that rvould be raised on either side

13. Accordingly, this Writ Petition is allowed. l-lr, rc shall bc no order as to costs. Misccliancous applications closed. pending, if an " sl-,a I I stand ,TTRUE COPY/' -t SD/- A.JAYASREE ,NisiliTANT REGISTRAR FECTION OFFICER \ lThecommissionerofcustoms(Hyderab-adll)lmports'tsTBhavan'oppLB ' iil=oli,,"rjl-.-n"o e;sn, $v$iffi ,?g?3X1,, opp L rr stadium, GSr

2. The Joint Commissionet " +li,f:, P,*"|Z:[X U*l*'Si3t;,t"t:3:3/o. Dy c o n r r iss i o n e r or c u sto m s, " t'iE.'thfi;;pri, nanea Reddv-Soe 3-25 ^

4. The Superintendentot6ilil;t o/"by' Commissioner rf Customs' ICD' -ini.,nip,i'R".eeBed$E-3_Bs_yi6ipirllr:,fl:ff effi?S,r.grrorcBrc

3. 313 333 SRl B6hK,i-t"ti'.rXi'i5es' "Enio' "t' toPUCl

7. Two CDCoPies 40.", To

HIGH COURT DATED:0910312026

ORDER

WP.No.7128 ot 2026 ALLOWING THE WRIT PETITION WITHOUT COSTS O--['1" zltl.-,. CC TODAY ,-.4: 'i$? o(J l9 UAH n26 7,o

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