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Telangana High Court
M/S. Arka Business Solutions vs Union Of India on 30 March, 2026
Author: P.Sam Koshy
Bench: P.Sam Koshy
IN THE HIGH COURT FOR THE STATE OF TELANGANA
AT HYDERABAD
THE HONOURABLE SRI JUSTICE P.SAM KOSHY
AND
THE HONOURABLE SRI JUSTICE NARSING RAO
NANDIKONDA
Writ Petition No.9006 of 2026
Dated: 30.03.2026
Between:
M/s.Arka Business Solutions ...Petitioner
AND
Union of India, Rep by its Secretary,
Ministry of Finance, Jeevan Deep Building,
3rd floor, Sansad Marg, New Delhi - 110 001 and others.
...Respondents
ORDER:
(per Hon'ble Sri Justice P.Sam Koshy)
Heard Mr.Tarun Chadha, learned counsel representing
Mr.P.Karthik Ramana, learned counsel for the petitioner and
Mr.N.Bhujanga Rao, learned Deputy Solicitor General of India
appearing on behalf of respondent No.1 and Mr.Dominic
Fernandes, learned Senior Standing Counsel for CBIC appearing
on behalf of respondent Nos.2 to 4. Perused the record.
2. The instant writ petition has been filed assailing the seizure
memo dated 16.03.2026, issued by the 4th respondent with the
further request to forthwith release the imported consignment of the
Multi-Functional Devices (107 units) under Bill of Entry
No.7926242 dated 07.03.2026.
3. Similar writ petitions of identical nature have already been
considered by this Bench wherein by way of a conditional interim
order this Bench had permitted the release of seized goods subject
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 authorities 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 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.
d) It 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. In 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
SLP.No.42808/24, dated 15.01.2025, has refused to interfere with
the order passed by this Bench.
6. However, as regards the proceedings before the adjudicating
authority is concerned, the Hon'ble Supreme Court permitted the
adjudicating authority to proceed and decide the same strictly in
accordance with law. The petitioner is also held entitled for
participation in the adjudicating proceedings.
7. Pursuant to the disposal of the SLP, this Court 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 instant case also
where the stage at this juncture is only the seizure memo and prayer
is also only for an interim release of the seized goods.
9. 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 of at the admission stage itself. Reserving
the right of the adjudicating authority to take appropriate decision
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 pay/deposit 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.
d) It is further made clear that so far as the
condition of the petitioner that demurrage 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 demurrage charges, the 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 goods imported
by them. Further, it is also ordered that in the event if the petitioners
upon release of the goods provisionally makes 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.
12. Needless to mention that the adjudicating authority in the
process of deciding the same would not be in any manner
influenced by the order of conditional release ordered by this Court.
The authority shall decide the same considering the objections and
contentions that would be raised on either side.
13. Accordingly, this writ petition is allowed.
Consequently, miscellaneous petitions pending, if any, shall
stand closed. There shall be no order as to costs.
_____________________
P.SAM KOSHY, J
_________________________________
NARSING RAO NANDIKONDA, J
30.03.2026
mrm
