Provisional Release Conditional on 10% Bank Guarantee and Detailed Sales Reporting: Telangana HC Clears Seized Printing Machines [Read Order]

The Telangana High Court directed Customs authorities to grant provisional release subject to a 10% bank guarantee and strict post-release sales disclosures. The Bench said that the importer is entitled to provisional release pending adjudication under the Customs Act, 1962.

The writ petition was filed by M/s Digital Print Solutions, who imported 233 units of second-hand specialized multifunction digital print, copy, and scan machines through Bill of Entry No. 5212205. The goods were seized by the Superintendent of Customs, ICD Thimmapur, by way of a seizure memo dated.

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The petitioner through Counsel Mohd. Anwar Ali, contended that the goods were fully declared, permissible for import under the Import-ExportPolicy 2023, and accompanied by all required documents. Despite readiness to pay applicable duties under the Customs Act, 1962, clearance was withheld. Therefore, they sought a declaration that the seizure was arbitrary and requested immediate provisional release along with waiver of demurrage charges.

Further, earlier writ petitions involving identical facts had resulted in provisional release orders from the same Bench was submitted, urging that the denial of similar relief would be inconsistent.

The bench comprising Justice P. Sam Koshy and Justice Suddala Chalapathi Rao observed that the case was identical to other writ petitions where provisional release had already been permitted. The Court noted that similar orders had been upheld when challenged before the Supreme Court which declined interference.

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