Telangana High Court permits conditional release of seized multifunction copiers

Background of the dispute

In Akshya Copier Solutions Vs Commissioner of Customs, the Telangana High Court examined a challenge to a seizure memo dated 07.01.2026 issued by the Customs authorities. The seizure related to an imported consignment of 127 multifunctional devices covered under Bill of Entry No.6539714 dated 26.12.2025.

The assessee approached the High Court seeking:

  • Quashing of the seizure memo dated 07.01.2026, and
  • Immediate provisional release of the seized imported goods pending completion of Customs adjudication.

The Bench heard counsel for the assessee and counsel representing the CBIC and perused the record placed before it.

Earlier similar writ petitions considered by the Court

The Court observed that it had already dealt with several writ petitions involving almost identical issues where imported consignments had been seized by Customs. In those matters, the Court had adopted a consistent approach of granting conditional provisional release instead of keeping the goods under continued seizure, subject to protection of the Revenue’s interest.

One such earlier matter, W.P.No.12489 of 2025, was specifically referred to. In that case:

  • The imported goods had been seized by Customs.
  • The assessee sought interim relief for provisional release of the consignment.
  • The High Court had allowed provisional release subject to fulfilment of specific financial and procedural conditions.

Conditions imposed in W.P.No.12489 of 2025

In W.P.No.12489 of 2025, the Court had directed the Customs authorities to take a decision on the assessee’s application for provisional release, subject to the following broad set of conditions:

  1. Payment of enhanced duty

    • The assessee was required to pay/deposit the enhanced duty amount as determined by Customs.
    • Upon receipt of that enhanced duty, the seized goods had to be released within four weeks.

  2. Time-bound quantification by Customs

    • Customs was directed to quantify the enhanced duty within one week from the date of receipt of the Court’s order.
    • Immediately upon such quantification, the assessee was required to pay the quantified amount in full.
    • After full payment, Customs was obligated to release the goods within a maximum period of four weeks.

  3. No bar on adjudication

    • The order making provisional release possible was expressly stated not to restrict or impede the Customs Department from continuing with adjudication or any other lawful proceedings.

  4. Demurrage waiver to be considered objectively

    • The Court noted the assessee’s grievance regarding demurrage charges.
    • It held that if an application seeking waiver of demurrage was filed, the concerned respondents must consider and decide such an application objectively.

  5. Additional safeguard – bank guarantee

    • The assessee was directed to furnish a bank guarantee of 10% of the total price of the imported goods.