WP/4159/2026 of M/s. Gaurik Enterprises Vs Union of India on 11 February 2026

M/s. Gaunk Enterprises, Represented by its Proprietor ltrl r Parimala Sqdheer Kalyan Kuteer, C - Block, H.No.4, Bhavani Nbgar, Nacharam Hyderabad Ranga Reddy Telangana - 500076, lndia ...PETITIONER 134471 IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) WEDNESDAY THE ELEVENTH DAY OF FEBRUARY TWO THOUSAND AND TWENTY SIX PRESENT THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE NARSING RAO NANDIKONDA WRIT PETITION NO: 4159 OF 2026 Between: AND

Union of lndia, rep. by its Secretary, Department of Revenue' IVlinistry of Finance, Govt of lndia, New Delhi Joint Commissioner of Customs (lmports), GST Bhavan, Basheebagh, Hyderabad - 500004 Deputy Commissioner of Customs lCD, Timmapur - 509325. Telangana Superintendent of Customs (lCD- Timmapur), Hyderabad Customs Commissionerate, Hyderabad, Telangana ...RESPONDENTS Petition under Article 226 of lLle constitution of lndia praying that in the 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 direction setting aside the seizure Memo dated 0510212026 issued by the 04th Respondent as being without jurisdiction and contrary to Foreign Trade Po cy 2023 and consequently direct the 04th Respondent to forthwlth release the Petitioners

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---, imported consignment of tvlulti- Functional Devrces (lr/lFD) rr 10g units under Bill of Entry dated 3110112026, bearing No.7232874. IA NO: 1 OF 2026 Pctrtion under Section 151 CpC praying that jn the ; .,lunrstances stated in the affidavit filed in support of the petition, the High court nr v be pleased to direct the 4,' Respondent to forthwith provisionally release the c )ods r.e 1og Units of l\/ultr- Function Devises (lr/FDs) which have been seized urr ier the Seizure lVlemo daled 0510212026, pending disposal of the present wnt pet t ln. eise the petitioner would suffer irreparable loss and severe hardship. Counsel for the Petitioner: SRI K. RAMA SRINIVAS, REpFI ,SENTING SRI AKKAPEDDI SRINIVAI Counsel for the Respondent No.1: SRI p. SHASHI KIRAN, S.C. FOR CENTRAL GOVI: TNMENT Counsel for the Respondent Nos.2 to 4: SRI DUNDU SASl{ \NK, JUNTOR S.C REPRESENTING SRI DOMINIC FERNANDES, SENIO I S.C. FOR CENTRAL BOARD OF INDIRECT TAXES AND CUSI ( IMS The Court made the following: ORDER

IN THE HIGH COURT FOR THE STATF:, OF TELANGANA AT HYDERABAI) THE TIONOURABLE SRI.IUSl'ICI I'.SAM KOSHY A\t) THE HONOURAI]LE SIiI JUS'IICE \ARSING RAO NANDIKONDA W.P.No.4l59 OF 2026 11.02.2026 Between M/s Gauri k Enterprises, Rep. by its Managing Director Mr. Parirnala Sudheer . . Petitioner AND Union ol India, Rep. by its Secretary, Depaftment of Revenue, Ministri, of F-inancc, Govemment of India, Nerv Delhi and 3 others Responclents ORDER: (per Hon'ble Sri .hrstic'e P Smt Kosh.r ) Heard Mr. K.Rama Srinivas, Icarned counsel rcprescnting Mr.Akkapeddi Srinivas, learned counsel lor thc petitioncr, Mr. P.Shashi Kiran, Iearned Standir.rg Counsel for the Central Govemrnent appearing for respondent No.l and Mr. Dundu Sashank, leamed Junior Standing Counsel representing \- ) l rncrno datcd 05.02.2026, Mr.Dominic Fernandes, leamed Senior Standing ounsel lbr the CIllCl appcaring fbr respondent Nos.2 to 4 Perusec he recold The instant writ petition has bcen filed ass r Iing thc scizLrrc issued by the 41r' respc rclent. r.vith thc lirlher reque'st to lorthwith release thc irnported c('r signrnent of rhc rurultifunctional dcvices (108 units) under Bill ol F:r t11, \o.72i2871 datcd 3 I.0l .102(r L Sinrilar writ petitions of identical nature l-rir e alreadl, been considered by this Bench wherein by way ol a cor Citional interinr order this Ilcnch had permitted the release of sciz:1 goods subjcct to the petitioner/importer fulfilling certain conditiorr L One such writ petition is W.P.No. 12489 of - (t25; rvhere the goods impoftcd rvere seized by the Customs aut Lorities atrd br, viltue ol' the interim order of this High Cou;r the Custorns authorities ''vere ordered to release on the followinrl conditions. for convenience, we reproduce paragraph Nos.26 &. '.7 ol the order passed in the aforesaid writ petition hereinunder:

26. Thus, for all the aforesaid reasons, it is ordere(l hat let the respondent authorities pass an.erder on the appkr,rl rn frled by i 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 Cusloms forthwrth within one (01) week from the date of receipt of a copy of this order. On receipt of such quantificatton, the payment shall be immediately made by the petitioners and on receipt of the payment in entrrety, 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 further proceedtngs including the adjudication in the manner known to law

d) lt is further made clear that so far as the condition of the petrtioner that demmurage charges till date, for the goods be considered for waiver, in this regard, if any application ts 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 wo(h 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.

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5. Pursuant to the said interim direction and r 1 on the petitioncr Lherein hrllllling the condirions stipulared by th,: I,ligh Courr. thc seized goods werc rcleased to the petitioner. l'e said ordcr. o1' relcasing oI thc goods u,as subjected to chall.nge befbr.e Lhc Hon'ble Suprernc Court; where the Hon'ble St:reute Courl in SLP.No.42808/24. ciatedl5.0 1.2025, has relused o inrerfer.e rvirh the ordcr passed b1, this Bench.

6. orvcver, as rcgards the proceedings befor.,r the ad.iudicating authority is conccrned, the FIon'ble Supreme Cot rt perrnitted the adjudicating authority to proceed and decide the ;amc strictll, in accordance witl.r law. The petitioner is also Ir.ld entitled lbr parlicipation in the ad.iudicating pr.oceedings.

7. Pursuant to rhe disposal of the SLp, this Co Lrt has disposed ol all such rvrit petitions whereby the goods were eleascd and thc proceedings u,erc pending before the adjudicating r.r thor.ity.

8. Sirnilar nature ol facts are also there in the i rstant case also where the stage at this juncture is only the seizure rr :mo and praycr is also only tbr an interim release of the seized goo<[ .

9. In the faclual matrix narrated in the preceding paragraphs, we are of the considered opinion that the instant rvrit petition also therclble can bc disposed of at thc admission stage itsell. R.csr'rr irrg thc right ol'the adjudicating authority to take appropliate de-cision in the proceedings after perrnitting the'petitioner to reprcscnt belbre the adj udicati ng authority

10. Thus, lor all the atbresaid lcasons, it is ordcred that lct the respondent authorities pass an order on the application li led b-"- the pctitioners fbl provisional release of the goods subjcct to the conditions that

a) I'he petitioner shall payldeposit thc cnhanccd duty amount. On receipt of such enhanced dut)' arnourlt paid by the petitioners, the goods in question shall be released within a period of four (04) rveeks therea licr.

b) For payment of such duty, quantification shall be made by the Customs forthwith within one (0 l) week frorn the date of receipt ol a copy of this orclcr. On reccipt of such quantification, the payment shall be irnmediately made by the petitioners and on receipt ol the payment in entirety, the goods shall be released as indicated above at the outer limit of lour (04) rveeks.

c) [t is rrade clear that this order will not r tand in thc rvar lirl Customs Departrnent to go ahelr, with the Iurlhcr proceedings inclLrding the adjudicrL on in the rnanncr k lto\\'lt to lau,. d ) It is lirrther rlade clear that so hr as thc conclition of thc petitioner that demurrage r harges till date. lbr the qoods bc considered for u,air:r', irr this rcgarcl. il anr application is filed bv the tetirioners scckin-rl such a rvaivcr ol dernurrage chalp.c: thc sarne shall be considered and decided by the ., spondents obiectir,'ely. 1 l. In addition. the petitioncrs are also directeci provide a bank guarantee worth l0 percent ol thc total price of th,r qoods impotted bl'thern. l:urthcr, it is also ordcrcd that in the event f the petitioners upon release of the goods provisionally makes and -. :ll tl.re supply to theil ctrstonrcr-s, details of the customers that of rr: :vant price and details of thc rcspective transactions shall be mair t rined and made available to thc rcspondent authoril-ies frorn time to 1 rne

12. Needlcss to mention that the adjudicating ; uthority in the process of' deciding the same would not be ir any manner inlluenced by the order of conditional release order: I by this Court.

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The authority shall decide the same considering the objections and contentions that rvould be raised on either side I 3. Accordingly, this u,rit petition is allou,ed. Thcre shall bc no order as to costs. Miscellaneous applications pending, il any, shall stand closed SD/.M. NAGAMA A ISTANT REG To //TRUE COPY// AR ECTION OFFICER ance, Union of lndia.

The Se-cretary, Department of Revenue, Ministry 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 - 509325, Telangana

4. The Superintendent of Customs (lCD- Timmapur), Hyderabad Customs Commrssionerate, Hyderabad, Telangana

5. One CC to SRI AKKAPEDDI SR|NIVAS, Advocate tOpUCl 6 One CC to SRI P. SHASHI KIRAN, S.C. for Central Government tOpUCl

7. One CC to SRI DOMINIC FERNANDES, Senior S.C. for Central Board of Indirect Taxes and Customs [OPUC] 8 Two CD Copies MP BS Pr4s

HIGH COURT DL IED:1110212026 ir r1 \j"/, '..(.q,, -:=-r-'toDi\ ?\ li8 l0l5 i,:ii ,. -: il :lz .<..',/ t 1;i;':l)ay'' (uR 1i ), C) (.) )- 2t

ORDER

WP.l1o.4159 of 2026 ALLOWING THE \VRIT PETITION W HOUT COSTS PMC,, *l-lre I