Gujarat High Court
Sharp System vs Union Of India on 20 November, 2025
Author: A.S. Supehia
Bench: A.S. Supehia
NEUTRAL CITATION
C/SCA/15465/2025 JUDGMENT DATED: 20/11/2025
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IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
R/SPECIAL CIVIL APPLICATION NO. 15465 of 2025
FOR APPROVAL AND SIGNATURE:
HONOURABLE MR. JUSTICE A.S. SUPEHIA
and
HONOURABLE MR. JUSTICE PRANAV TRIVEDI
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Approved for Reporting YesNo
✔
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SHARP SYSTEM
Versus
UNION OF INDIA & ORS.
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Appearance:
UCHIT N SHETH(7336) for the Petitioner(s) No. 1
MR SHASHVAT SHUKLA for the Respondent (s) No. 2,3
DEEPAK N KHANCHANDANI(7781) for the Respondent(s) No. 2,3
MR PRADIP D BHATE(1523) for the Respondent(s) No. 1
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CORAM:HONOURABLE MR. JUSTICE A.S. SUPEHIA
and
HONOURABLE MR. JUSTICE PRANAV TRIVEDI
Date : 20/11/2025
ORAL JUDGMENT
(PER : HONOURABLE MR. JUSTICE A.S. SUPEHIA)
1. Heard learned advocate Mr. Uchit Sheth for the petitioner and learned Senior Standing Counsel Mr. Shashvata Shukla for the respondents.
2. Rule returnable forthwith. Learned Senior Standing Counsel Mr. Shashvata Shukla waives service of notice of rule on behalf of the respondents.
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NEUTRAL CITATION C/SCA/15465/2025 JUDGMENT DATED: 20/11/2025 undefined
3. Learned advocate Mr. Uchit Sheth does not press prayer 25 (A). Hence, the writ petition qua prayer 25(A) stands dismissed.
4. By this petition under Article 226 of the Constitution of India, the petitioner has prayed to direct the respondents to forthwith provisionally release the goods of the petitioner under Section 110A of the Customs Act, 1962 (For Short "the Act") without insisting for any further security or payment.
5. Learned advocate Mr. Sheth for the petitioner has placed reliance on the various decisions of this Court, one of which is the order dated 06.08.2018 passed in Special Civil Application No. 9757 of 2018 and allied matters. It is submitted that the petitioner has already furnished personal bond of 100% of the value of the goods and he is ready and willing to give additional 25% over and above 100% of the value of the goods.
6. The brief facts of the case are that the petitioner is engaged in the business of import and resale of the ink jet sheets for ink jet setter. It is the case of the petitioner that it had imported such plates from China and the Bill of Entry for home consumption was filed on 17.06.2025 and 30.06.2025 respectively by the petitioner, wherein the description and value were accurately mentioned. The petitioner had paid applicable customs duty on the import transaction. Upon Page 2 of 5 Uploaded by PHALGUNI PATEL(HC00175) on Tue Nov 25 2025 Downloaded on : Tue Nov 25 21:16:27 IST 2025 NEUTRAL CITATION C/SCA/15465/2025 JUDGMENT DATED: 20/11/2025 undefined verification of the goods, customs authority alleged that the goods were digital printing plates and therefore liable for anti-dumping duty vide Notification No. 28/2024 dated 26.12.2024. 6.1. Thereafter on 04.07.2025, panchnama was drawn for verification of the imported goods. It is the case of the petitioner that the petitioner submitted duly attested provisional release bond to the respondents for the purpose of seeking provisional release. Since the goods were not being provisionally released, another letter dated 12.09.2025 was addressed by the petitioner to the respondents reiterating the request for provisional release. It is further the case of the petitioner that though the petitioner has given bank guarantee of 100% of the alleged duty liability along with bond for value of goods, the goods were not being provisionally released by the respondents. Hence the petitioner is constrained to approach this Court by way of present petition.
7. In support of his submission, learned advocate Mr. Sheth has placed reliance on the decision of this Court in case of T.G. Enterprise v. Union of India rendered in Special Civil Application No. 9757 of 2018 and allied matters decided on 06.08.2018 and submitted that the goods may be released provisionally. It is submitted that the petitioner is also ready and willing to give an Page 3 of 5 Uploaded by PHALGUNI PATEL(HC00175) on Tue Nov 25 2025 Downloaded on : Tue Nov 25 21:16:27 IST 2025 NEUTRAL CITATION C/SCA/15465/2025 JUDGMENT DATED: 20/11/2025 undefined undertaking to the extent of 10% of redemption fine and 10% penalty in case he remains unsuccessful in the adjudication process.
8. As against this, learned Senior Standing Counsel Mr. Shashvat Shukla appearing for the respondents submitted that the goods may not be provisionally released as the same are appropriately seized by invoking the provisions of Section 110 of the Act, and it is in the absolute discretion of the customs authority to detain the goods and any provisional release would be detrimental to the interest of the respondents.
9. The aforementioned facts about seizure of the goods by the respondents is not in dispute. However, since the petitioner has not pressed prayer clause 25(A), the only prayer which requires consideration is with regard to the release of the goods provisionally. It is also not in dispute that the petitioner had already given unconditional bank guarantee of 100% of differential value of duty and given personal bond of 100% of the value of the goods. The petitioner is also ready and willing to give additional 25% personal bond of the value of the goods over and above 100% and he is also ready and willing to give an undertaking to the extent as mentioned above.
10. Under the circumstances in view of the aforesaid facts, and in Page 4 of 5 Uploaded by PHALGUNI PATEL(HC00175) on Tue Nov 25 2025 Downloaded on : Tue Nov 25 21:16:27 IST 2025 NEUTRAL CITATION C/SCA/15465/2025 JUDGMENT DATED: 20/11/2025 undefined light of the order passed by this Court in Special Civil Application No. 9757 of 2018 and allied matters dated 06.08.2018, in an identical issue with regard to the provisional release of goods, wherein the Co-ordinate Bench has ordered provisional release of goods on furnishing personal bond of 125% of the value of the goods and also the bank guarantee in favour of the department of 35% of the differential value of the duty, we are inclined to allow the prayer with regard to the provisional release of the goods on the following conditions :
(i) The petitioner shall furnish personal bond of 25% of the value of the goods which is over and above the 100% personal bond which is furnished by the petitioner.
(ii) Upon furnishing the aforesaid personal bond of additional 25% of the value of the goods, the respondents shall release the goods provisionally.
(ii) The petitioner shall also file an undertaking to the satisfaction of the customs authority.
11. In view of the above, the writ petition stands disposed of accordingly. Rule is made absolute to the aforesaid extent. No order as to costs.
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