WP/5003/2026 of M/s.Gaurik Enterprises Vs Union of India on 18 February 2026

-t ; 13447 1 IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) WEDNESDAY, THE EIGHTEENTH DAY OF FEBRUARY TWO THOUSAND AND TWENTY SIX PRESENT THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRIJUSTICE NARSING RAO NANDIKONDA WRIT PETITION NO: 5003 OF 202G Between ...PETITIONER AND

tVl/s.Gaurik Enterpriseq,. Rgprg.sented by its Proprietor Mr.Panmala Sudheer Kalyan Kuteer, c - Bloc( H.No.4, Bhavani N-agar, N6charam Hyderabad, Ranga Re8oy Telangana - 500076, lndia Union of lndia, rep... by..its secretary, Department of Revenue, Ministry of Finance, Govt. of lndia, New Delhi ) Joint commissioner of customs (lmports) GST Bhavan, Basheebagh, Hyderabad - 500004 Deputy commissioner of customs lcD, Timmapur - 509325, Terangana superintendent of customs lcD-Timmapur, Hyderabad customs Commissionerate, Hyderabad, Telangana ...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 a Writ of Mandamus or any other appropriate writ or Order or direction setting aside the Seizure [\4emo dated 12t02t2}26 issued by the 04th Respondent as being without jurisdiction and contrary to Foreign Trade Policy 2023 and consequently direct the O4th Respondent to forthwith release the Petitioners imported consignment of lvlulti-Functional Devices (IUFD) of 103 units under Bill of Entry dated 31t01t2026, bearing No.7223324.

lA NO: 1 OF 2026 Petition underSection 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 04th Respondent to forthwith provisionally release the goods i.e., 103 Units of Multi-Function Devises (tVlFDs) which have been seized under the Seizure [/emo dated 1210212026, pending disposal of the present Writ Petitir:n, else the Petitioner would suffer irreparable loss and severe hardship. Counsel for the Petitioner: SRI K. RAMA SREENIVAS, REPRESENTING SRI AKKAPEDDI SRINIVAS Counsel for the Respondent No.1: SRI B. MUKHERJEE, REPRESENTING SRI N. BHUJANGA RAO, DEPUTY SOLICITOR GENERAL OF INDIA counsel for the Respondent Nos.2 to 4: SRI DoMtNlc FERNANDES, sENloR S.C. FOR CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS The Court made the following: ORDER

IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDBRABAD THE HONOURABLE SRI JUSTTCE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE NARSING RAO NANDTKONDA WP.No.5003 of 2026 Betrveen: Date:18'02'2026 M/s.Gaurik [")nterprises, Rep.by its l'roprietor Mr.Parimala Sudheer, l{ydcrabad. Petitioncr And lJnion of India, rep.by its Secretary Dcpartmertt of Revenue, Ministry of Finance, Govt.of India. New Delhi and others. Respondents ORDER: (per Hon'ble Sri Justice P.Sam Koshy) Heard Mr.K.Rama Sreenivas, leatned counsel representing Mr.Akkapeddi Srinivas, learned counsel for the petitioner; Mr.B.Mukherjee, learned counsel representing learned Deputy Solicitor General of lndia, appearing for respondent No.l and Mr.Dominic Femandes, learned Senior Standing Counsel for CBIC appearing for respondent Nos.2 to 4 and perused the record.

2. The instant writ petition has been filed assailing the seizure memo dated 12.02.2026, issued by the 4'h respondent with further request to forthwith release the imported consignment of the .r4o I

i rnultifunctional devices (103 units) trnder Bill of Entry No.7223324 dated3l.0l .2026

3. Sirnilar writ petitiorrs of identical nature have already been considered by this Bench wherein by rvay of a conditional interim order this Rench ttad permitted the release of seized goods subject to the petitioner/irnporter fulfi lling certain conditions

4. One such writ petition is W.P.No.12489 of 2025; where the goods imporled were seized b1' the Customs authorities and by virtue of the interirn order of this High Couft, the Customs authorities were ordered to release on the following r:onditions. For convenience, \ /e reproduce paragraph Nos.26 & 27 of the order passed in the aforesaid rvrit petiticn hereinunder:

26. Thus, for all the aforesaid reasons, it is ordered that let the respondent authoritres 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 " tnu 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 further 'proceedings including the adludication in the manner known to law'

d) lt is further made clear that so far as the condition of the petitioner that demmurage charses titl date' t:: t::-goods be considered 'o' *l'""r.' in tnit regard' if any application is filed by the petitioners seeking such a waiver of demmurage charges' thesameshallbeconsideredanddecidedbytherespondents ob!ectivelY'

27. lnaddition' 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 sellthe supply to their customers' details of the customers that of relevant price and details of the respective transactions shall be maintainedandmadeavailabletotherespondentauthorities from time to time' I

5. Pursuanttothesaidinterimdirectionanduponthepetitioner thereinfulfrllingtheconditionsstipulatedbytheHighCourt,the seizedgoodswerereleasedtothepetitioner.Thesaidorderof releasingofthegoodswassubjectedtochallengebeforethe Hon,ble Supreme Court; where the Hon'ble Supreme Court in il

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SLP.No.42808124, dated15,01 .2025, has refused to interfere with the order passed by this Bench.

6. However, as regards the proceedings before Lhe adjudicating authority is concerned, the Hon'ble Suprerne Couft permitted the adjudicating authority to proceed and clecide the same strictly in accordance with [aw. The petitioner is also held entitled for participation in the adjudicating proceedings.

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

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

9. [n the factual matrix nanated 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 ;{tself. Reserving the right of the adjudicating authority to take appropriate decision it i:j i

I I 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) 'fhe petitioner shall payldeposit the enhanced duty amount. On receipt of such enhanced duty alnount paid by the petitioners. the goods in question shal1 be released within a period of four (04) weeks thereafter.

b) Iror payment of strcl'r 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 payrnent 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 tbr Customs Department to go ahead with the further proceedings including the adjudication in the manner known to law.

d) lt 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 obi ectively.

11. In addition, the petitioner is also directed to provide a bank t I . ! ,it iil 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 custonlers, details o{'the custorners that of rel,lvant price and details of the respective transactions shall be mairrtained and rnade available to the respondent authorities fronr tirne tcl t:tne.

12. Needless to mention that the adjudicating authority in the process ol' deciding the same would not be in any Inanner 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 an'.f, shall stand closed. SD/.P.C. SULEKHA DEVI ANT REGISTRAR S To ! //TRUE COPY// I I \; ON OFFICER

1. The Secretary, Department of Revenue, Ministry of Frnance, Union of lndia, Govt. of lndia, New Delhi

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

3. The Deputy commissioner of customs lcD, Timmapur - s09325, Telangana

4. Ih. superintendent of customs lcD-Timmapur, Hyderabad customs Commissionerate, Hyderabad, Telangana. 5 One CC to SRI AKKAPEDDI SRINIVAS, Advocate [OP|JC]

6. One CC to SRI N. BHUJANGA RAO, Deputy Solicitor General of lndia loPUCl i ) I d .--,-:,4

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7. One CC to SRI DOI\4INIC FERNANDES, Senior S.C. for Central Board of lndirect Taxes and Customs [OPUC] B. Two CD Copies

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HIGH COU DATED i1810212 lni D

;3 ill{fl 2826 RDER WP.trlo.5003 of 2026 ALLOWING THE WRIT PETITION WITHOUT COSTS L) * * L IiI b a