Customs Seized Imported Used Printers Despite DGFT Chartered Engineer Clearance: Madras HC Orders Provisional Release [Read Order]
The High Court ordered the provisional release of 102 used multifunction printing devices subject to bond & GST.
Customs Seized - DGFT - Chartered Engineer - Madras HC - taxscan
Customs Seized - DGFT - Chartered Engineer - Madras HC - taxscan
The Madras High Court recently directed the provisional release of 102 imported second-hand Digital Multifunction Print & Copy Machines (MFDs) that were seized by Customs, after noting that the consignments had been certified by a CharteredEngineer approved by the Directorate General of Foreign Trade (DGFT) and that the was no statutory mandate for the Ministry of Environment to clear such imports.
A petition was filed by M/s Growlam Office Private Limited challenging the Customs’ withholding and proposing forfeiture of the used MFD consignments that were imported with proper Bill of Entry dated September 19, 2025.
The goods were examined and appraised by a DGFT-approved Chartered Engineer, M/s Supreme Techno Associates Pvt. Ltd., who issued a satisfactory report as well. The petitioner sought provisional release on the ground that the machines qualify as Highly Specialised Equipment (HSEs) which are freely importable, and that the required documents under Schedule VIII of the HOW Rules had been filed.
The petitioner, represented by Vaibhav R. Venkatesh, made out a case that the provisional release regime under Section 110A should be available where goods are not prohibited and have been certified by the authorised engineer, and that they had already provided the report certificate to the Customs Officer In-charge and the Customs proceeded to forfeit in spite of such report.
M. Santhanaraman, Standing Counsel, represented the Customs.
Justice N. Anand Venkatesh considered earlier orders in the batch matter Taanish Enterprises Vs. The Commissioner Of Customs (Chennai Ii) Imports & Ors in W.P. No. 29418 of 2024 where the legal framework under the Hazardous and Other Wastes (Management and Transboundary Movement) Rules, 2016 (HOW Rules) was referenced.
In Taanish Enterprises (supra) it was held that Rule 13(2) of the HOW Rules does not require prior permission of the Ministry of Environment, Forest and Climate Change for imports listed in Part D of Schedule III and that the limited obligation is to file specified documents under Schedule VIII with Customs at the time of import.
Accordingly, the Madras High Court directed the Customs to provisionally release the seized goods by imposing requisite conditions as per the provisions of the Customs Act, 1962, within a period of four weeks from the date of receipt of a copy of the order.
However, the High Court clarified that the provisional release order shall not prevent the Customs Department to reverse its decision in the final adjudication by passing appropriate orders under the Customs Act.
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