WP/38167/2025 of M/s.Real Digital Services Vs Union of India on 11 December 2025

[3489 I IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) THURSDAY, THE ELEVENTH DAY OF DECEMBER TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE SUDDALA CHALAPATHI RAO WRIT PETITION NO: 38167 OF 2025 Between: M/s.Real Digital Services, Represented by its Managing _Partner Mr Mujeeb P.K H.No.i1-3-841, Mouzimpura Vijaya Nagar Colony, lr/allepally Hyderabad, Telangana - 500001, ...PETITIONER AND

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 Commissionerate, Hyderabad, Telangana ...RESPONDENTS Petition under Article 226 of the Constitution of lndia praying thal in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to invoke the lurisdiction 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 04-12-2025 issued by the 4th Respondent as being without jurisdiction and contrary to Foreign Trade Policy 2023 and consequently direct the 04th Respondent to forthwith release the Petitioner's imported consignment of Multi-Functional Devices (MFD) of 1'17 units under Bill of Entry dated 27-11-2025, bearing No.5952165.

lA NO: 1 OF 2o2s Petition under Section 151 CPC praying that in the c t the affidavit filed in support of the writ petition, the High Cc L direct the 04th Respondent to forthwith release the goods i Function Devises (NIFDs) which have been seized under th: O4-12-2025, pending disposal of the present Writ Petitlcr would suffer irreparable loss and severe hardship. )umstances stated in 1 may be pleased to 3 117 Units of [t/ulti- Seizure Memo dated else the Petitioner Counsel for the Petitioner: SRI AKKAPEDDI SRINIVAS Counsel for the Respondent No.1: SRI K. ARVIND KUMAFI, REPREENTING SRI N BHUJANGA RAO Deputy Solicil( r General of lndia Counsel for the Respondent No.2 to 4: SRI DOMINIC FERI! \NDES, SENIOR SC FOR CE IC The Court made the following: ORDER

IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICB SUDDALA CHALAPATHI RAO W.P.No.38l67 OF 2025 11.12.2025 Betu,een: M/s Real Digital Services. Rep. by its Managing Partner, Mr. Mujeeb P.K. ...Petitioner AND Union of lndia, Rep. by its Secretary, Deparlment of Revenue, Ministry of Finance, Govemment of India, New Delhi ar-rd 3 others . . . Respondents ORDER, (per IIon'ble Sri Jusrice P.Sam Koshy) Heard Mr. Akkapeddi Srinivas, leamed counsel lor the petitioner, Mr.K.Arvind Kumar, learned counsel representing Mr. N.Bhujanga Rao, leamed Deputy Solicitor General of India for respondent No. I and Mr.Dominic Femandes, leamed Senior Standing Counsel for the CBIC for respondent Nos.2 to 4. Perused the record.

2. The instant rvrit petition has been filed assa Ll ng the seizure dated 04. 12..2025, issued by the 4'h resptr,dent with the nletno lufther request to fbrthwith t elease the imported con ignrnent of the multifunctional devices (l l7 units) under Bill of L.r,t y t"No.5952165 dated 27 .ll 2025

3. Similar writ petitions of identical nature har : already been considered by this Bench wherein by way of a cotr litional interim order this Bench had permittcd the rclease olseize r goods subject to the petitioner/imporler fulfilling certain conditior:

4. One such writ petition is W.P.No.12489 o1'2 )25; where the goods imported were seized by the Customs autl orities and by virtue of the interim order of this High Court the Customs authorities rvere ordered to release on the followinS, :onditions. For convenience, we reproducc paragraph Nos.26 & 17 ot the order passed in the aforesaid writ petition hereinunder:

26. Thus, for all the aforesaid reasons, it is orderecl hat let the respondent authorities pass an order on the applic.rl on filed by the petitioners for provisional release of the goods su )ject 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 tmmediately 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 includrng 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 additron, 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 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 the petitioner therein fulfilling the conditions stipulated by the High Court, the seized goods were released to the petitioner. -fh: said order of relcasing ol- the goods was subjected to challer 1e before the [Ion'ble Suprerrc Courl; ri,hcre the Hon'ble Sup erre Courl in SLP.No.4280U/24, <latedl5.0l .2025, has refused t,r interfere wirh the order passed b1, this Bench.

6. However, as regards the proceedings belorc i. e atlludicating authority is concerned, the Hon'ble Supreme Cour permitted the adjudicating authority to procccd and decide the ; Lrne strictly in accordance with law. The petitioner is also lrc l entitled for parlicipation in the adjudicating proceedings

7. Pursuant to the disposal of tl-re SLP, this Corr t has disposed of all such rvrit petitions whereby the goods were rt Ieased and the proceedings were pending belore the adjudicating irrr hority.

8. Similar nature of facts are also there in the ir itant case also where the stage ar this juncture is only the seizure n.t mo and prayer is also only lor an interim release of the seized goods

9. In the lactual matrix narrated in the preceding raragraphs, we are of the considered opinion that the instant u,r.i petition also therefore can be disposed ol at the admission stage itself. Reserving the right of the adjudicating authority to take appropriate decision in the proceedings aftcr penritting the petitioner to represent before the adj udicating 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 pctitioners 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 shatl be released within a period of lour (04) weeks thereafter.

b) For payment of such duty, quantification shall be made by the Customs forthwith within one (01) week frorn the date of receipt of a copy of 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 shall be released as indicated above at the outer lirnit of four (04) weeks.

c) It is rnade clear that this order will not stand in the way for Customs Department to go ahead with the further proceedings including the adjudicari rn in the manner known to law. d ) It is further made clcar that so r as the condition o1- the petitioner that demurrage r.1 argcs till date, lor the goods be considered for n,arrr r. in this regard, if any application is filed by the leririoners seeking such a waiver of demurrage charge :. thc same shall be considcred and decided by rhc r:,pondents objectively. 1l In addition, the petitioners are also directcd t r provide a bank guarantee worlh l0 percent of the total price of the ioods imported by them. l-urther, it is also ordered that in tlr ' event if the petitioners upon release of thc goods provisionall\ trakes and sell tte supply to thcir customers, details of the cL: omers that o1, relevant price and details ol the respective transa ltiorls shalt be maintained and made available to the respondenr . ,rthorities liom trnre to timc

12. Needless to mention that the adjudicating z,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. i, I il

The authority shall decide the sarne 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. D/-L. VIJAYA LAXMI TANT REGIS //TRUE COPY// CTION OFFICER To, The Secretary, Union of lndia, Department of Revenu Govt. of lndia, New Delhi Ministry of Finance,

2. Joint Commissioner of Customs (lmports)' GST Bhavan' Basheerbagh' Hyderabad - 500004

3. Deputy Commissioner of Customs lCD, Timmapur - 509325' Telangana

4. Suoerintendent of Customs (lCD-Timmapur), Hyderabad Customs Cohrmissionerate, Hyderabad, Telangana

5. One CC to Sri Akkapeddi Srinivas, Advocate [OPUC]

6. oneCCtoSriN.BhujangaRao,DeputySolicitorGeneraloflndia[oPUC]

7. One CC to Sri Dominic Fernandes, SC for CBICIOPUC]

8. Two CD CoPies TJ BS Fk

HIGH COURT DATED:1 111212025

ORDER

WP.No.38167 of 2025 ,\( + do !j- N q * ALLOWING THE WRIT PETITION WITHOUT COSTS I I I lo .enA ryY\w-. 6fl-rxB: tt) (^ .-a\i *