M/S.Gaurik Enterprises vs Union Of India on 25 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
                      W.P.No.8907 OF 2026
                            25.03.2026

Between:

M/s Gaurik Enterprises,
Rep. by its Proprietor Mr. Parimala Sudheer
                                                   ...Petitioner
                               AND

Union of India, Rep. by its Secretary,
Department of Revenue, Ministry of Finance,
Government of India, New Delhi and 3 others
                                                ...Respondents
ORDER:

(per Hon'ble Sri Justice P.Sam Koshy)

Heard Mr. K.Rama Sreenivas, learned counsel representing

Mr. Akkapeddi Srinivas, learned counsel for the petitioner and

Mr. Dundu Sashank, learned counsel representing Mr. Dominic

Fernandes, learned 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 16.03.2026, issued by the 4th respondent

with the further request to forthwith release the imported

consignment of the multifunctional devices (94 units) under Bill of

Entry No.7927203 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, dated15.01.2025, 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 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 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. There shall be no

order as to costs.

Miscellaneous applications pending, if any, shall stand closed.

_____________________ P.SAM KOSHY, J

_________________________________ NARSING RAO NANDIKONDA, J 25.03.2026 Lrkm