WP/3675/2026 of M/s. Digital Print Solutions Vs The Commissioner of Customs (Hyderabad II) Imports on 6 February 2026

13447 | IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original J urisdiction) FRIDAY, THE SIXTH DAY OF FEBRUARY TWO THOUSAND AND TWENTY SIX PRESENT THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE NARSING RAO NANOIKONDA WRIT PETITION NO: 3675 OF 2026 Between: M/s. Digital Print Solutions, H.No.5-9-250/258. Room No.05,3rd Floor, Unity House, Abids,Hyderabad - 500001, GSTNo.36AAWFD1471G127, IEC/PAN, AAWFD147'1G, Rep,by tt4anaging Partner P.Laxminarayan Rao S/o Late ShivajiRao. .....PETITIONER AND 'I . 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, O/o Dy. Commissioner of Customs, lCD, Thimmapur, Ranga Reddy-509 325 Ranga Reddy-509 325.

4. The Superintendent of Customs, O/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.l 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 04.02.2026 and refusal to allow the clearance of the subject goods covered by vide Bill of Entry No.7125543 daled 27.01 .2026 (114)

units payment of applicable total duties on the declarerr value as arbitrary, unreasonable, contrary to the provisions of the Customs t cl 1962, the lmport- Export Policy 2023, Meity Notification S.O. No.2844(E) dat: i 01.O7.2021 by duly setting aside the seizure memo and panchanama and Sup.l Jnama dt.04.02.2026 of 4th respondent is in violation of petitioners fundamenta .ights guaranteed by Article 14, 19(1Xg) and 300A of the Constitution of ln,j a ard to direct the Respondent to release the subject goods forthwith on appli: rble duty by granting waiver of demurrage charges. l.A.NO:'l OF 2026 Petition Under Section 151 CPC praying that in the c r )umstances stated in the affidavit filed in support of the petition, the High Court nlr be pleased to direct the 1 to 4 respondent to provisionally release various mo, els of Second-hand Highly Specialized Equipment - Digital [\/ultifunction Print, O,pying and Scanning Ivlachines. imported by the Petitioner and which have leen submitted for clearance before the Respondents 1 to 4 vide Bill of Enlr, No.7125543 dated 27 .O1 .2026 (1 14) Units, on payment of applicable duty. Counsel for the Petitioner : SRI MOHD ANWAR ALl, ADVO( ATE FOR SRI MALLA REDDY GADIPALLY Counsel for the Respondents : M/s DOMINIC FERNANDES, SENIOR SC FOR cBtc The Court made the following ORDER

IN THE HIGH COURT FOR THE STATE OF TE,LANGANA AT HYDERABAD THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRI.IUSTICE NARSING RAO NANDTKONDA Writ Petition No.3675 of 2026 Dated: 06.02.2026 Between: M/s.Digital Print Solutions, H.No.5-9-250/258, Room No.5, 3"t t'loor, Unity House, Abids, Hyderabad 500 001, Rep by its Managing Parlner P.Laxminarayan Rao Petitioner ANt) The Commissioner of Customs, (Hyderabad II) Imports, GST Bhavan, Opp.L.B.Stadium, Basheerbagh, Hyderabad - 500 004 and othcrs. I{espondents ORDER; (per l{on'ble Sri Justice P.Sun Koshyl Heard Mr.Mohd.Anwar Ali, leamed counsel representing Mr.G.Malla Reddy, leamed counsel for the petitioner and Mr.Dominic Femandes, leamed Senior Standing Counsel for CBIC appearing on behalf of respondents. Perused the record

2. The instant writ petition has been filed assail ng the seizure memo datecl 04.02.2026, issuecl by the 4th lespcr dent rvith the firrtl-Ler request to lorthwith release the impofted cor': rgnment of the Multi-Functional Devices (l l4 units) under f ilL ol Ilntrl No.7 I 25543 dated 27.01.2026. i. Similal rvrit petitions of identical nature ha,' already been considcred bl this Bench whercin by way of a conc itional interint order. tl.ris Bench had permitted the release of seizcl goods subject to the petitioner/irnporter fulfilling certain condition:r

4. One such writ petition is W.P.No.12489 of i t 25; where the goods imported w'ere seized by the Customs autir rritics and b1 virluc of the interim order of this High Cout1. the Customs authorities rvere ordered to release on the follolvinq , onditions. For convenience, we reproduce paragraph Nos.26 & ll ' of the order passed in thc aforesaid writ petition hereinunder:

26. Thus, for all the aforesaid reasons, it is ordered 1 rat let the respondent authorities pass an order on the applicali n filed by the petitioners for provisional release of the goods sut ect to the conditions that: i I I I

a) The pet(ioner shall pay/deposit the enhanced duty amount. On recelpt of such enhanced duty amount paid by the petitioners, the goods in question shall be released wrthin a period of four (04) weeks thereafter'

b) For payment of such duty, quantifrcatlon shall be made by the Customs forthwith withrn 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 petitroners 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 wrll not stand in the way for Customs Department to go ahead with the further proceedings rncludrng 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 petttioners seeking such a waiver of demmurage charges' the same shall be considered and decided by the respondents obyectivelY.

27. ln addition, the petitioners are also dlrected to provide a bank guarantee worth 1O 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 maintainedandmadeavailabletotherespondentauthorities from time to time

5. Pursuant to the said interim direction and upon the petitioner therein tulfilling the conditions stipulated by the High Court' the scized goods were released to the petitioncr. l l r saicl order of rcleasirrg ol' the goods subjected to challr.r ge belbre thc was lkrn'blc Srrpt.-rne Ciourt; rrhere- the Ilon,ble Su1. -elle Courl in SLP.No.4280lii24, datcd 15.01.2025. has refused intert'ere with tlrc order passed by this Bench

6. I [ower,er, as regards the proceedings beforc, t re ad.iudicating authority is concerned, ttre Iion,ble Supreme Cor r pennitted the ad.iudicating aLrthor.iLv to proceed and decide the : rme stricrly in accordance rvith law. The petitioner is also rr,. d crrtitrecr for participation in the adjudicating proceedings.

7. Pursuanr to the disposal of the SLp, this Co. t has disposcd of all such u,rit petitions whereby the goods were r. ,leased and the ploceedings rvere pending befbre the adjudicating a.r hority.

8. Similar nature ol f-acts are also there in the r stanl case also whele the stagc at this.iuncture is only the seizure nr .rno and prayer is also only lol an interim release of the seized goorls

9. In the f-actual matrix narrated in the precedinl: raragraphs, we are of the considered opinion that the instant urr petition also .'-"

( t ii 1i therefore can be disposed ofat the adtnission stage itsell' Rescrving the right of the adjudicating authority to take appropriate decision in the proccedings atier perrnitting thc petitioner to reprcscnt bctbre thc ad.l udicating authority l0 'fhus, for all the afbresaid reasons, it is ordered that let the respondent authorities pass an order on the application filed b1' the petitioners fbr provisional rclease of the goods sub.iect 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) wceks thereafter.

b) For payment of such duty, quantillcation shall he rnade by the Customs forthwith within one (01)week fiom the date of receipt of a copy ol this order' On receipt ol such quantification, the payment shall be immediatety made by the petitioners and on receipt of the payment in entirety, the goods shatl 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 I

hrrther proceedings including the adjudicatir n in the rnanne r known to law.

d) It is lurther madc clear lhat so Jr. as the corrdition of' the petitioncr that demurrage cl trges till datc, lbr the goods be considered for wair,: , in this regard, il any application is filed by the ; rtirioners seekinc such a rvaiver ol demurrage charges. the same shall hc considered and decided by the rr,r pondents objectii cly, I l. In addition, the petitioner is also directed to ; rovide a Bank (iuarantee rvrrrth l0 percent ol the total price of the , oods imported by them. Furthcr', it is also ordered that in the event i the petitioners upon release ot- the goocls provisionally makes and st ll the supply to [heir custonrers, details of the customers that of re I r.ant price and details of'thc respect.ive transactions sha[[ be main i ined and made available to thc respondent authorities lrom time to t rne.

12. Needless to mention that the adjudicating r-.rthority in the process of deciding the same would not be ir any manner influenced by the order of conditional release order: I by this Court. 'fhe authoritv shall dccide the same considering th: objections and contentions that would bc raised on either side. I

13. Accordingly, this writ petition is allowed Consequently'. miscellaneous petitions pending, il any, shall stand closed. There shall be no order as to costs. SD/.MOHD.ISMAIL PUTY REGIST /iTRUE COPYII CTION OFFICER To

1. The Commissioner of Customs (Hyderabad ll) lmpo B Stadium, Basheer Bagh, Hyderabad- 500004.

2. The Joint Commissioner, of Customs (lmports),Opp Bhavan, Basheerbagh, Hyderabad- 500004. L st T Bhavan, Opp. L adium, GST

3. The Assistant Commissioner of Customs, O/o Dy. Commissioner of Customs, lCD, Thimmapur, Ranga Reddy-509 325 Ranga Reddy-509 325.

4. The Superintendent of Customs, O/o Dy. Commissioner of Customs, lCD, Thimmapur, Ranga Reddy- 509 325.

5. One CC to SRI MALLA REDDY GADIPALLY, Advocate IOPUC]

6. One CC to M/s DOMINIC FERNANDES, SENIOR SC FOR CB|C, Advocate [oPUC]

7. Two CD Copies SA LS w

HIGH COURT DATED:0610212026

ORDER

WP.No.3675 of 2026 ALLOWING THE W.P WITHOUT COSTS. .--=. ji ''"i; S I

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