WP/3069/2026 of M/s.CS Enterprises Vs Union of India on 3 February 2026

131471 HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) TUESDAY, THE THIRD 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: 3069 OF 2026 Between: tt//s.CS Enterprises, Represented by its Proprietor Smt.M.Josphine New No.22, Old No.10, 138 2nd Floor Aziz Mulk 4th Street Thousand Lights, Chennai - 600006 Tamilnadu, India ...PETITIONER AND I 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, Telangana Superintendent of Customs (lCD-Timmapur) Hyderabad Customs Co m m iss io n erate, 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 the jurisdiction vested by Arlicle 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 22-01-2026 issued by the 04th Respondent as being without jurisdiction and contrary to Foreign Trade Policy 2023 and consequenfly direct the 04th Respondent to forthwith release the Petitioner's imported consignment of Multi-Functional Devices (l\ilFD) of 108 units under Bill of Entry dated 16-01-2026, bearing No. 6926898.

lA NO: 1 OF 2026

Petition under Section 151 CPC praying that in the cir the affidavit filed in support of the petition, the High Cou r direct the 04th Respondent to forthwith provisionally relea s Units of Multi-Function Devises (MFDs) which have be: Seizure [tilemo dated 22-01-2026, pending disposal of the J else the Petitioner would suffer irreparable loss and severe lr umstances stated in may be pleased to : the goods i.e 108 r seized under the resent Writ Petition, rrdship. Counsel for the Petitioner : SRI K.RAMA SREENIVAS, rep., SRI I KKAPEDDI SRINIVAS counser ror the Respondent No'1 ' 3l.rli".T,litlf*5t?i,0,,, Counsel for the Respondent No.2TO4:SRl DOMINIC FERNANDE I , Sr.SC FOR CBIC The Court made the following: ORDER F'

IN TTIE HIGTI COURT FOR THE STATtr OF TELAN(]ANA AT HYDERABAI) THE HONOURABLE SRI .IUSTICE P.SAM KOSHY ANI) THE HONOURABLE SRI JUSTICE NAII.SING RAO NA\-.I)IKONI)A WP.No.3069 of 2026 Date:03.02.2026 lJctlveen: N4/s.CS Enterprises. rep.by its Proprietor Smt.M.Josphine. I amilnadu. Petitioncr And I inion of lndia, rep.by its Secretary Dcpartmcnt of Rcvcnue. Ministry of Financc. Govt.ol India. Neu' Delhi and others. llespontltnts ORDER: (per Hon'ble Sri Justice P.Sum Koshy) Heard Mr.K.Rama Sreenivas, learncd counsel representing Mr.Akkapeddi Srinivas, learned counsel lor the peLitioner and Mr'.Dominic Femandes, learned Senior Standing Counsel for CBIC appearing for respondent Nos.2 to 4. Perused the record.

2. The instant writ petition has been tiled assailing the scizure memo dated 22.01 .2026, issued by the 4'h respondent wlth lirther request to forthwith release the irnported consignrnent of the multifunctional devices (108 units) under Bill of Entry No.6926898 dated 16.01 .2026 ....i'

3. Similai: rvrit petitions of identical nature har: already been considered hv ihis Bench u,herein by way of a corr litional interim orcier- '.his Bcnch had permitted the release of seizt, goods sub.iect to the pct itiorci/inr porter hrlfilling cerlain conditior:

4. One sLrch u'rit pctition is W.P.No. 12489 o1-2 )25: whele the goods imp<rr'.e,-l n.eie seized by the Customs aurl orities ancl b1 virtue of thc interim order ol this tligh Cour t the Customs authoritics ri ri e ordcr.'d to release on the followinr :onditions. For reploduce paragraph Nos.26 & 2 7 of the order convenlencc. \\'e passeci in thc afblesaid writ petirion hereinunder:

26. Thus, for all the aforesaid reasons, it is orderec hat let the respondent authonties pass an order on the applicat:n filed by the petitroners foi'orovisional release of the goods s I ,ject to the conditions that

a) The petitioner shall pay/deposit the enh a )ced duty amount On recetpt of such enhanced duty amount I aid by the petitroners, the goods in question shall be releas: I withrn a period of four (04) weeks thereafter.

b) For payment of such duty, quantification shall : the Customs forthwith within one (01) week from t receipt of a copy of this order. On receipt of such qtri the payment shall be immediately made by the petlt on receipt of the payment in entirety, the goods shall t as indicated above at the outer limit of four (ofweek s ) made by e date of ntification, lners and : released

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 lo law

d) lt is further made clear that so far as the condition of the petitioner that demmurage charges trll 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 cnarges. the same shall be considered and decided by the respondents objectively.

27. ln addition, the petrttoners are also directed to provtde 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 petrtioners upon release of the goods provistonally 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.

5. Pursuant to the said interim direction and upon thc petirioner therein tullilling the conditions stipulated by the High Courl. thc seized goods were released to the petitioner. The said oldcr of releasing of the goods was subjected to challenge belbrc the Hon'ble Supreme Court; where the Hon'ble Suprerne Clotrrl in SLP.No.42808 124, datedl5.01 .2025, has refused to interf-ere r'vith the order passed by this Bench. :r :'rr,l riri ,;::.

6. Iiou,evcr- as regards the proceedings before t re adjudicating iiu'rhorit\. is loircerrtecl. titc Hon'ble Supreme Cor r permitted the ad.iuciicating aiithoritv to proceed and decide thr: s rme strictly in participatio!'t in the adjudicating proceedings 7 . l)tLrsuart to thc disposa] ol the SLP, this Co -r t has disposed of all srLch virit petitions rvhereby the goods were ' leased and the proceedings \!..:re lrending belore the adjudicating a r horitl,

8. Similat nature ol f'acts are also there in the r stant case also r,vhere the staqc at this juncture is only the seizure nr rno and prayer is also only ror an interim release of the seized goocs

9. In the lactual matrix namated in the precedinl. taragraphs, we are of the considered opinion that the instant rv- , petition also therefore can be disposed of'at the admission stage I ;elf. Reserving the right of the adjudicating authority to take apprc rriate decision in the proceedings after permitting the petitioner to r 'present before the adjudicating authority accorciancc- lr;:h lar.i. l'he petitioner is also h: d entitled for

10. Thus, for all the aforesaid reasons, it is ordered that let the respondent authorities pass an order on the application filed by thc petitioners fbr provisional release ol the goods subicct to thc conditions that:

a) Thc pctitioner shall pay/deposit the cnhanccd.duty amount. C)n receipt ol such enhanced dut,v amount paid b1' the petitioners. the goods in question shall be released within a period of lour (04) rveeks thcrealler.

b) For pal.mcrlt of such dutl'' quantitication shall he madc b1 thc C-trstotlls lorthrvith s ithin onc (0I ) weck t-rorn the date of reccipt ol a copy of this order' On reccipt ol such quantification. tire pay-rncnt shall be irnrrecliately madc b1' tire petitioners and on receipt of the payment in entirety' thc goods shall bc released as indicated above at the outer limit ol lour (04) weeks.

c) It is made clear that this order will not stand in thc way fbr Customs Departmcnt to go ahead with the further proccedings including the adjudication in thc manner knorvn 1o lau -

d) It is furlher made clear that so lar as the condition o1 the petitioncr that demurragc charges till datc, for the goods be considercd tbr rvaiver. in this regard. il any application is filod by the pctitioners seeking such a q'aivcr of dcmurragc charges, the same shall be considered and dccided by the respondents objectivelY. In addition, the petitioner is also directed to provide a bank guarantee rvorth 10 percent of the total price of the goods imporred 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 lL:-ili.

their custorrers, details of the customers that of rr:. :vant price and details of the respective transactions shall be mairt .ined and made availabie to the responcient authorities from tirne to t me.

12. jrlcr:ci.les:, io ntcntion that the adjudicatinlt l.lthoritl in thc process of dcciding the same would not be ir any manner influenced bv the order olconditional release order: I by this Court. The authoritv shall decide the same considering th: ob-jections and contentions that w,ould be raised on either side.

13. Accorciinciy, this Writ Petirion is allowed. -l I :r.e shall be no order as to cos1s. Miscelianeous applications pending, if ar., shall stand closed SD/ K.BHAVANI SWAMY Si STANT REGISTRAR .=:'-:*-==':.-.-- t sEcroN oFFrcER To, //TRUE COPYi/ The Secretary, Union of India, Department of Re Govt. of lndia, New Delhi e

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

3. The Deputy Commissioner of Customs lCD, Timmapur

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

5. One CC to SRI AKKAPEDDI SRINIVAS, Advocate. [Ol)

6. One CC to SRI N.BHUJANGA RAO, Deputy Solicitor C r Court for the State of Telangana at Hyderabad. [OPUC]

7. One CC to SRI DOMINIC FERNANDES, Senior Standir IoPUCI

8. Two CD Copies. BSK Hr vlinistry of Finance, van, Basheebagh, 509325, Telangana bad Customs JC] neral of lndia, High J Counsel for CBIC. =:.:- -,--:'"7T,1@

HIGH COURT DATED:0310212026

ORDER

WP.No.3069 of 2026 ALLOWING THE WRIT PETITION WITHOUT COSTS :l- - I irrc SI,i, oa ,' [ [[g Zrrli * c" .r. '!.,. uora*fr)Z' '-=-:==' t. .'{s^ &"*