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M/S.City Office Equipment vs. Union Of INDIA

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WP/21418/2026HC TelanganaGSTCNR HBHC01044145202607 July 2026Bench: P.SAM KOSHY,NARSING RAO NANDIKONDA10 pages

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Cause title — parties, addresses and appearances
134471 IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) TUESDAY, THE SEVENTH DAY OF JULY TWO THOUSAND AND TWENTY SIX s PR,E ENT THE r{OhTOURABI,IE SRt {L|STICE P.SAM KOSHY I I I A.ND TFIE HONOUR,AELE SIRI JUSTICE NARSING RAO NANDII(ONDA WRIT PETITION NO: 21418 OF 2026 Between: IVI/s. City Office Equipment, Represented by its Proprietor, Mr.Pavan Kumar Jhunjhunwala, New i..Ic.47, Old No.20, Aziz Mulk 3rd Street, Thousand Lightb, Chennai - 600006, Tamilnadu, lndia. ...PETITIONER AND 1. Union of lndia, rep. by its Secretary, Department of Revenue, Ministry of Finance, Govt. of lndia, New Delhi 2. Joint Commissioner of Customs, (lmports) GST Bhavan, Basheebagh, Hyderabad - 500004 3. Deputy Commissioner of Customs lCD, Timmapur - 509325, Telangana 4. Superintendent of Customs, (lCD-Timmapu| Hyderabad Customs Commissionerate, 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 invoke the jurisdiction 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 12-06-2026 issued by the 04th 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 2'12 units under Bill of Entry dated 30-05-2026, bearing No. 9585916. l.A. NO: 1OF 2026 Petition under Section 151 CPC praying that in the circunrstances stated in the affidavit filed in support of tlre petition, the High Court may [5, pleased to clirBct the 04th Respondent to forthwith provisionatly release the goods i e., 212 Units of Multi- Function De',,ises (IMFD:s) which have been seized under the Seizlrre Memo clateC 12-06-2026, perrding disposaf of the present Writ Petition, els,: the Fretitioner rtirould suffer irreparable loss anC severe hardship, pending dlsposal o' lhe vrrit petition. ;l Couns;el forrthe Fbtitioner; SRI K.RAMA SREENIVAS, [tEip. I SR,I AKKAPEDDI SRINIVAS Counsel forthe Respondent No.1: SRI N.BHUJANGA RAO, DEPUTY SOLICITOR GENERAL OF INDIA Counset for the ttespondent No.2 to 4: SRI DOMINIC FEF|N,qNDES, Sr. SC FOR CBIC

The Court made the following: ORDER

IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAI) THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOT]RABLE SRI JUSTICE NARSING RAO NANDIKONDA W.P.No.21418 of 2026 07.07.2026 Between: M/s.City Offi ce Equipment Tamilnadu, India. . . .Petitioner AND Union of India, Rep. by its Secretary, Department of Revenue, Ministry of Finance, Gol.t.of India, New Delhi and others ...Respondents ORDER: (per Hon'ble Sri Justice P.Sam Koshy) Heard Mr.K.Rama Sreenivas, leamed counsel representing Mr.Akkapeddi Srinivas, leamed counsel for the petitioner and Mr. Dominic Femandes, leamed Senior Standing Counsel for the CBIC for respondent Nos.2 to 4. Perused the record.

2.

The instant writ petition has been filed assailing the seizure memo dated 12.06.2026, issued by the 4'h respondent with further request to forthwith release the imported consignment \ \

2 of the multifunctional devices (212 units) under Bill of Entry No.9585916, dated 30.05.2026. 3. Similar writ petitions of identical nature hav': already been considered by this Bench wherein by way of a conditional interim order this Bench had permitted the release of seizec goods subj ect to the petitioner/importer fulfilling certain conditions.

4.

One such writ petition is W.P.No. 12489 of 2025; where the goods imported were seized by the Customs auttLorities and by virtue of the interim order of this High Court. the Customs authorities were ordered to release on the following conditions. For convenience, we reproduce paragraph Nos.26 & 27 of the order passed in the aforesaid writ petition hereinunder:

26.

Thus, for all the aforesaid reasons, it is ordered that let the respondent authorities pass an order on the application filed by the petitioners for provisional release of the goods subject to the conditions that: a) The petitioner shall pay/deposit the enh:tnced duty amount. On receipt of such enhanced duty amount paid by the petitioners, the goods in question shall be releast:d within a period of four (04) weeks thereafter. b) For payment of such duty, quantification shall he made by the Customs forthwith within one (01) week from .he date of 3 receipt of a copy of this order. On receipt of such quantification, the payment shall be immediately 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 including 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 addition, 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. The said order of releasing of the goods was subjected to challenge before the Hon'ble Supreme Court; where the Hon'ble Supreme Court in 4 SLP.No.42808 124, datedl5-01.2025, has refused to interfere with the order passed by this Bench.

6.

However, as regards the proceedings before the adjudicating authority is concemed, the Hon'ble Supreme Court permitted the adjudicating authority to proceed and decide the seime strictly in accordance with law. The petitioner is also hel'l entitled for participation in the adjudicating proceedings.

7.

Pursuant to the disposal of the SLP, this Coutt has disposed of all such writ petitions whereby the goods were released and the proceedings were pending before the adjudicating authority.

8.

Similar nature of facts are also there in the in stant case also where the stage at this juncture is only the seizure mt:mo and prayer is also only for an interim release of the seized goods. g. In the factual matrix narrated in the preceding paragraphs, we are of the considered opinion that the instant writ petition also therefore can be disposed ofat the admission stage ilself. Reserving the right of the adjudicating authority to take appicpriate decision

5 in the proceedings after permitting the petitioner to represent before the adjudicating 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 petitioners 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 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 immediately 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) It 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 to law.

6 d) It is further made clear that so far as the condition of the petitioner that demurrage chzLrges till date, for the goods be considered for waiver' in this regard, if any application is frled by the pe:titioners seeking such a waiver of demurrage charges' 'Ie same shall be considered and decided by the respondents objectivelY.

11.

In addition, the petitioner is also directed to provide a bank guarantee worth 10 percent of the total price of the ploods imported by them. Further, it is also ordered that in the event il-the petitioners upon release of the goods provisionally makes and se'll the supply to their customers, details of the customers that of rel'lvant price and details of the respective transactions shall be maintained and made available to the respondent authorities from time to time' 12.Needlesstomentionthattheadjudicatingauthorityinthe process of deciding the same would not be in any manner influenced by the order of conditional release ordert:d by this Cout't' The authority shall decide the same considering th': objections and contentions that would be raised on either side'

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13.

Accordingly, this writ petition is allowed. There shall be no order as to costs. Miscellaneous applications pending, if any, shall stand closed. C.DEEPIKA ASSISTANT REGISTRAR //// SECTION OFFICER The Secretary, Department of Revenue. Ministry of Finance, Govt. of lntik New Delhi, Union of lndia. The Joint Commissioner of Customs, (lmpo(s) GST Bhavln, Basheebagh' Hyderabad - 500004 fhe iDeputii Cornmissioner of Customs lCD, Timrpapu'j - 509325' Telangana The Superrintendent of Customs, (lCD-Ti:::mapur) Hydertabad Customs Commissionerate, Hyderabad, Telangana One CC to SRI AKKAPEDDI SRINIVAS, Advocate [OPUC] One CC to SRI DOMINIC FERNANDES, Sr. SC FOR CBIC [OPUC] One CC to SRI N.BHUJANGA RAO, DEPUTY SOLICITOR GENERAL OF lNDlA, High Court for the State of Telangana ai l-lyderabad [IOPUC] rl Two CD Copies u To, 1. 2. i A tr 6. 7. o. BSR TKS 6

HIGH COURT DATED: 0710712026 ORDER WP.No.21418 of 2026 2r juL 2W 2 c, ///. , *.\ J. t ."-i,. I ,.t t ^cel.gf0 A 7 + t ALLOWING THE WRIT PETITION, WITHOUT COSTS /' ilo rl I i { ID 7

Reproduced from the public record of the Telangana High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.