The Telangana High Court has directed Customs authorities to provisionally release 124 imported multifunction print and copying machines seized at the Inland Container Depot (ICD), Thimmapur, subject to payment of enhanced customs duty and furnishing of a bank guarantee.
The bench of Justice P.Sam Koshy and Justice Narsing Rao Nandikonda clarified that the Customs Department remains free to continue adjudication proceedings in accordance with law.
The writ petition was filed by the importer challenging the seizure memo dated 9 June 2026 issued by Customs authorities concerning 124 second-hand highly specialized digital multifunction print and copying machines imported under Bill of Entry No. 9565442 dated 29 May 2026.
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The importer contended that the seizure and refusal to clear the goods despite payment of applicable customs duties were arbitrary, contrary to the provisions of the Customs Act, 1962, the Foreign Trade Policy, 2023, and the MeitY Notification S.O. 2844(E) dated 1 July 2021. The petitioner also sought waiver of demurrage charges arising due to the seizure.
The matter came up before the Division Bench comprising Justice P. Sam Koshy and Justice Narsing Rao Nandikonda.
The Court observed that similar disputes involving seizure of imported second-hand multifunction devices had already been considered by the same Bench.
It specifically referred to W.P. No. 12489 of 2025, wherein the Court had granted provisional release of seized goods subject to specified safeguards. The Bench noted that the Supreme Court had subsequently declined to interfere with that interim arrangement while permitting Customs authorities to proceed with adjudication in accordance with law.
Finding that the present case involved substantially similar facts and that only provisional release of seized goods was sought at the present stage, the Court considered it appropriate to dispose of the petition by adopting the same conditions.
The High Court directed Customs authorities to process the petitioner’s application for provisional release subject to the various conditions.
Firstly, the importer must pay the enhanced customs duty determined by the Customs Department.
Secondly, Customs must quantify the duty within one week from receipt of the Court’s order.
Thirdly, upon payment of the quantified duty, the seized goods must be released within four weeks.
Fourthly, the importer must furnish a bank guarantee equivalent to 10% of the total value of the imported goods.
Lastly, if the importer sells the provisionally released goods, complete records of customers, sale prices and transactions must be maintained and produced before Customs whenever required.
Importantly, the Division Bench clarified that provisional release of the imported machinery would not affect the Customs Department’s statutory powers.
The Court expressly stated that Customs authorities remain at liberty to continue adjudication proceedings and decide the legality of the imports independently. It further directed that the adjudicating authority should decide the matter purely on the basis of objections and evidence placed before it, without being influenced by the High Court’s order granting interim release.
The Court also addressed the petitioner’s request for waiver of demurrage charges.
Instead of granting immediate relief, it directed that if the importer submits an application seeking waiver of demurrage, the Customs authorities should consider and decide the request objectively in accordance with law.
The Telangana High Court allowed the writ petition and granted provisional relief on the prescribed conditions while preserving the Customs Department’s authority to complete adjudication proceedings under the Customs Act. No order as to costs was passed.
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