M/S.Excel Copiers vs. Union Of INDIA

Facts

M/s. Excel Copiers (Petitioner) filed a writ petition challenging a Seizure Memo dated April 17, 2026, issued by the Superintendent of Customs (4th Respondent). The Petitioner sought to set aside the seizure and direct the release of their imported consignment of 100 Multi-Functional Devices (MFDs) under Bill of Entry dated April 13, 2026. The Petitioner also sought provisional release of the goods pending the disposal of the writ petition, citing potential irreparable loss and severe hardship. The goods were seized by Customs authorities.

Held

The High Court, following its previous orders in similar writ petitions, allowed the writ petition. The Court directed the respondent authorities to pass an order on the petitioner's application for provisional release of the goods subject to specific conditions. These conditions include the petitioner paying/depositing the enhanced duty amount, with quantification to be made by Customs within one week of the order. The goods are to be released within four weeks of receiving the enhanced duty payment. The Court clarified that this order would not impede further proceedings, including adjudication, by the Customs Department. It also stated that any application by the petitioner for waiver of demurrage charges would be considered objectively. Additionally, the petitioner must provide a bank guarantee worth 10 percent of the total price of the imported goods and maintain details of customers, prices, and transactions for goods sold provisionally. The adjudicating authority is to decide proceedings without being influenced by this conditional release order.

Key Issues

1. Whether the Seizure Memo dated April 17, 2026, issued by the 4th Respondent is without jurisdiction and contrary to the Foreign Trade Policy 2023, thereby warranting its setting aside and release of the imported consignment of 100 Multi-Functional Devices (MFDs) under Bill of Entry dated April 13, 2026? Petitioner's Contention: The Petitioner argued that the seizure memo was without jurisdiction and contrary to the Foreign Trade Policy 2023, seeking the setting aside of the seizure and release of the goods. They also prayed for provisional release of the goods to avoid irreparable loss. Revenue's Contention: The judgment does not record any specific arguments made by the Revenue or State respondents. However, the presence of Customs authorities as respondents indicates their role in the seizure and their likely defense of the action.