Aadrikaa Legal Services (ALS) – IDT Tax I Arbitration I Litigation
Date: 20.06.2026
High Court of Madras Orders Provisional Release of Imported Secondhand Digital Multifunction Printing Machines
This Short Article has been prepared & written by Advocate Ravi Shekhar Jha-Delhi High Court, New Delhi. The views expressed are based on his interpretation of the law. He can be reached at his email id intelconsul@gmail.com .
Cann Office Equipment Private Limited, a registered Micro, Small, and Medium Enterprise (MSME) based in Mumbai, specializes in importing and trading secondhand digital multifunction print and copying machines (MFDs). In May 2026, the company imported 107 units of these highly specialized machines from France and sought clearance from Chennai Customs under Bill of Entry No. 9314508 dated 16.05.2026.
Despite statutory exemptions and favorable inspection reports, Customs authorities withheld the release of the consignment, citing the need for Bureau of Indian Standards (BIS) registration and restrictions on such imports.
Legal Arguments
- Petitioner’s Stand:
- The petitioner argued that the imported MFDs are exempt from the Compulsory Registration Order under Clause 8(d) of the MeiTy Amendment Order (01.07.2021), as each machine weighs over 80 kg and qualifies as highly specialized equipment.
- The goods are considered freely importable as secondhand capital goods under Para 2.31(1)(d) of the Foreign Trade Policy (FTP), 2023.
- The petitioner referenced a previous High Court order (W.P.No.29418 of 2024, dated 10.07.2025) that allowed provisional release of similar goods.
- Respondents’ Position:
- Customs authorities indicated willingness to consider provisional release if the petitioner fulfilled conditions previously imposed by the Court in similar cases.
The Court’s Order
Madras High Court ruled in favor of the petitioner, issuing the following directions:
- Provisional Release:
- Customs Department, Chennai, must pass orders for provisional release of the disputed goods, imposing conditions as deemed fit under the Customs Act, 1962, within four weeks of receiving the order.
- Fulfillment of Conditions:
- Upon the petitioner’s fulfillment of these conditions, Customs must release the goods provisionally within two weeks.
- Subject to Final Adjudication:
- The provisional release is subject to final adjudication by Customs. The department retains the right to reverse its decision based on the outcome of the final review.
- No Costs:
- The connected writ miscellaneous petition was closed with no order as to costs.
Implications for Importers
- Precedent for Similar Cases: This order reinforces the principle that importers of highly specialized secondhand equipment, meeting specific criteria, can seek provisional release even if regulatory ambiguities exist.
- Compliance Requirements: Importers must be prepared to execute a bond for 100% of the enhanced value of goods and pay applicable GST, as appraised by certified engineers.
- Ongoing Scrutiny: Provisional release does not guarantee final clearance; importers should be ready for further adjudication and possible reversal.
Conclusion
The Madras High Court’s decision provides significant relief to importers of secondhand digital multifunction printing machines, clarifying the process for provisional release and setting a clear precedent for similar disputes. Importers should ensure compliance with all stipulated conditions and remain attentive to the final adjudication process.
Source: Madras High Court
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