The Madras High Court has directed the Customs Department in Chennai to grant provisional release of a consignment of 106 second-hand digital multifunction print, copying, and scanning machines imported by M/s. Maruti Enterprises, after holding that second hand digital machines does not require environment ministry approval.
The bench of Justice N. Anand Venkatesh observed that import of used Multifunction Devices (MFDs), classified as Highly Specialized Equipment (HSE), is not prohibited, though subject to documentation under the Hazardous and Other Wastes (Management and Transboundary Movement) Rules, 2016. The question of final admissibility can be adjudicated later, but provisional release cannot be denied merely due to an ongoing inquiry.
ThePetitioner/assessee, M/s Maruti Enterprises had imported highly specialised second-hand digital multifunction devices and filed Bills of Entry on September 23, 2025. The machines were examined and valued by Supreme Techno Associates Pvt. Ltd., a DGFT-approved Chartered Engineering firm, which certified the enhanced value of the goods. Despite this, Customs authorities did not allow provisional release and proceeded towards forfeiture.
The importer approached the High Court seeking a Writ of Mandamus to allow release of the goods on execution of a 100% value bond and payment of applicable GST on the enhanced valuation.
The assessee filed the writ petition filed by the Chennai-based importer seeking release of the consignment detained despite having undergone inspection and valuation by a DGFT-approved Chartered Engineer.
The Court noted that the dispute was “squarely covered” by its earlier landmark order in W.P. No. 29418 of 2024 and connected matters dated July 10, 2025, where it held that under Section 110A of the Customs Act, seized goods may be released during pending adjudication on suitable conditions.
The Court reiterated the benefit of doubt principle, observing that where classification or restriction is disputed, Customs must demonstrate sufficient grounds to deny import benefits, failing which the importer must be allowed provisional release.
The Court disposed of the writ petition with the various directives.
Firstly, customs must pass provisional release orders within four weeks, imposing reasonable conditions under the Customs Act, 1962.
Secondly, upon compliance with such conditions, the goods must be released within two weeks.
Lastly, the release will remain subject to final adjudication, and Customs retains the power to reverse the release through penal orders if warranted.
Case Details
Case Title: M/s.Maruti Enterprises Versus The Commissioner of Customs (Chennai II) Import
Case No.: Writ Petition No.38999 of 2025 and W.M.P.No.43682 of 2025
Date: 15.10.2025
Counsel For Petitioner: Vaibhav R Venkatesh
Counsel For Respondent: M.Santhanaraman Standing Counsel
