Seizure of Second-Hand Digital Multifunction Machines: Telangana HC orders release on Duty Payment and 10% Bank Guarantee [Read Order]
The Bench stated that at this stage the dispute was only at the level of seizure and provisional release, while final determination on legality of import and valuation could proceed before the adjudicating authority.
The Telangana High Court has ordered provisional release of seized second-hand digital multifunction print and copying machines imported holding that continued detention was not warranted at the seizure stage when similar matters had already been granted conditional release.
The writ petition challenged by M/s Copy Tech Solutions against the seizure memo dated 28.01.2026 issued by Customs authorities in respect of 239 units of second-hand digital multifunction machines covered under a specific Bill of Entry.
The memo sought immediate clearance on payment of applicable duties along with waiver of demurrage.
The petitioner contended that the seizure and refusal to allow clearance were arbitrary and contrary to the Customs Act, import policy, and MeitY notification, and violated constitutional protections.
The Division Bench of Justice P. Sam Koshy and Justice Narsing Rao Nandikonda noted that multiple earlier writ petitions involving similar imports of second-hand multifunction devices had been considered.
The bench noted in those cases, the Court had already permitted provisional release subject to safeguards.
It observed that conditional release had been granted on payment of assessed/enhanced customs duty and furnishing of security, and that those directions had even been carried to the Supreme Court.
The apex court declined to interfere and allowed adjudication proceedings to continue independently in accordance with law.
The Bench stated that at this stage the dispute was only at the level of seizure and provisional release, while final determination on legality of import and valuation could proceed before the adjudicating authority.
Accordingly, the court ordered release of goods subject to payment of enhanced duty and 10% bank guarantee. It clarified that the custom is free to continue with the adjudication and other proceedings.
If the importer applies for waiver of demurrage charges, the same should be considered objectively by the authorities, said the court.Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
