WP/4205/2026 of M/s. Arka Business Solutions Vs Union of India on 11 February 2026

a3M7 | 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 P,ETITION NO: 4205OF 2026 Between: M/s. Arka Business Solutions, rep. by its Partner, Mr. K. Akhil Priyatam, 2nd Floor, Unit No.203, SBRS C.V.Towers, Hitech City Road, Madhapur, Hyderabad-sOO 081. .....PETITIONER AND 'l . Union of lndia, Rep. by its Secretary, Ministry of Finance, Jeevan Deep Building,3rd Floor, Sansad Marg, New Delhi-110 00'1.

2. Joint Commissioner of Customs (lmports), GST Bhavan, Basheerbagh, Hyderabad-500 004.

3. Deputy Commissioner of Customs, lCD, Thimmapur-S09 325, Telangana.

4. Superintendent of Customs (lCD-Thimmapur), Hyderabad Customs Commissionerate, Hyderabad. .....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 Memo dated 5.2.2026 issued by the 4th Respondent as being without jurisdiction and contrary to the Foreign Trade Policy' 2O23 and consequently direct the 4th Respondent to forthwith release the Petitioner's imported consignment of Multi-Function Devices of 118 units under Bill of Entry daled 23.1 .2O26, bearing No.7074823.

|.A.NO:1 OF 2l)26 Petition UnderSection 151 CPC praying that in the circumstances stated in the affidavit fikrd in support of the petition, the High Court may be pleased to direct the 4th Respondent to forthwith release the goods i.e., 118 units of Multi-Function Devices that have been seized under the Seizure Memo dated 5.2.2026, pending disposal of the Writ Petition, as othenvise the Petitioner will be put to severe loss and hardship. Counsel for the Petitioner : SRI TA,RUN CHADHA, ADVOCATE FOR SRI KARTHIK RAIVI AN A PUTTAM REDDY Counsel for the Respondent No.1 : SRI P.SHASHI KIRA,N, STANDING COUNSEL FOR CENTRAL GOVERNMENT Counsel for the Respondent Nos.2 to 4 : SRI DUNDU SASHANK, JUNIOR STANDING COUNSEL REPRESENTING M/S DOMINIC FERNANDES, SC FOR CBIC The Court marle the following ORDER

TN THE HIGH COURT FOR THE STATE OF TELANGANA AT IIYDERABAD THII HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE NARSING RAO NANDIKONDA

w. P.No.4205 OF 2026 11.02.2026 Between M/s Arka Business Solutions, Rep. by its Partner Iv{r. K.Akhil Priyatam Petitioner AND Union of India, Rep. by its Secretary, Department of Revenue, Ministry of Finance, Government of India, Nerv Delhi and 3 others ...Respondents ORDER' Qter l{on'bLe Sri Jusrice P.Sam Koshy) Heard Mr. I'arun Chadha, learned counsel representing Mr. Karthik Ratnana Puttarnreddy, learned counsel for the petitioner, Mr. P.Shashi Kiran, learned Standing Counsel for the Central Government appearing for respondent No.l and Mr. Dundu Sashank, learned Junior Standing Counsel representing

Mr.Dominic Fernandes, leamed Senior Standing counsel for the CBIC appearing for resp.nderrt Nos.2 to 4 perused the record.

2. The instant writ petition has been filed assailing the seizure memo dated 05.02.2026, issued by the 4'h respondent. rvith the further request to forthwith release the inrported consignment of the multifrnctional devices (l l8 u,its) under Bill of Errrry No.7074g23 dated ,23.01 .2026.

3. Similar writ petitions of identical nature have already been considered by this Bencll whcrein by way of a conditional interim order t.his Bench had permitted the release of seized goods subject to the retitioner/importer fulfilling ceftain conditions.

4. one such writ petition is w.p.No. l24gg of 2025; r,vhere the goods imported were seized by the customs authorities and by virtue of the interim order of this High couft, 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:

216. Thus, for all the aforesaid reasons, it is ordered that let the respondent authorities pass an order on the affiiration 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) 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 adjudication 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. 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 make and sellthe 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. l)ursuant to the said interim direction and upon the petitioner therein fulfrlling the conditions stipulated by the Fligh Courl, 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 llon'ble Supreme Court in SLP.No.42808124, datedl5.0l .2025, has refused to interf-ere with the ord:r passed by this Bench

6. I{owever, 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 accordrmce with law. The petitioner is also held entitied for participration in the adjudicating proceedings.

7. f'ursuant to the disposal of the SLP, this Court has disposed of all such writ petitions whereby the goods were released and the procee<lings were pending before the adjudicating authority.

8. flimilar 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,rnly 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 insrant writ petition also therefore can be disposed of at the adrnission stage itself. Reserving the right of the adjudicating authority to take appropriate decision in the proceedings after perniitting the petitioner to represent before the adjudicating authority:

10. Thus, for all the aloresaid 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) It is made clear that this order rvill not stand in the \^,ay for Customs Department to go ahead u,ith the further proceedings including the acljudicati.n in the rTlanner known to law.

d) It is further made clear tliat so lar as the condition of the petitioner that demurrage charges till dlte, for the goods be considered fbr waiver, in this rr:gard, if any application is filed by the petitioners st:eking such a waiver of demurrage charges, the same shall be considered and decided bi,, the respondents olrjectively. I l. In addition, the petitioners are also directed to provide a bank guarant,le worth l0 percent of the total price of the goods imported by them. Further, it is also ordered that in the event if the petitioners upon re ease 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 rnade available to the respondent authorities from tirne to tirne.

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.

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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. SD/-T.SRINIVAS REDDY ASSISTANT REGISTRAR //TRUE COPY/

To SECTION OFFICER

1.

3.

6. B SA/BS ct-tg

\ HIGH COURT DATED:11 10212026

ORDER

WP.No.4ll0S of 2026 ALLOWIilIG THE W.P WITHOU]T COSTS. ri- ).i .ts\.i r- I d' 26 ft0t0efi r) (.: * I