IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 16-03-2026 CORAM THE HON'BLE MR.JUSTICE MOHAMMED SHAFFIQ and WMP Nos.3109 and 3110 of 2026 M/s. P.G.S. Impex, Prop. Mr.Gurusamy Nadar Suresh, No.25/12, Kamarajar Salai, Periyachekkadu, Madhavaram Milk Colony, Manali, Chennai 600 051. ..Petitioner(s)

Vs

1. The Principal Commissioner of Customs (Preventive)

Customs House, No.60, Rajaji Salai, Chennai-600 001.

2. The Additional Commissioner of Customs, (Preventive /Adjudication)

Customs House, No.60, Rajaji Salai, Chennai-600 001.

3. The Additional Director General Directorate of Revenue Intelligence, Delhi Zonal Unit, Pt. Deendayal Antyodaya Bhawan, B-34, Lodhi Road, CGO Complex, Pragati Vihar, New Delhi-110 003.

..Respondent(s)

Writ Petition filed under Article 226 of the Constitution of India, pleased to issue a Writ of Certiorarified Mandamus,calling for records in and connected with Provisional Release Order bearing F.No.GEN/ADJ/ADC/2240/2025- ADJN dated 23.12.2025 passed by the 1st Respondent and quash the same insofar as it insists on furnishing bank guarantee of Rs.8,77,500/- and consequently direct the respondents to provisionally release the seized goods, namely Maize Popcorn weighing 35,100 Kgs seized vide Seizure Memo dated

25.08.2025 on execution of bond alone.

For Petitioner(s): Mr.Shravan kochar for Mr. B.Satish Sundar For Respondent(s): Mr.S.R.Sundar, Standing Counsel for RR 1 & 2

ORDER

This writ petition is filed challenging the Provisional Release Order dated

23.12.2025 bearing F.No.GEN/ADJ/ADC/2240/2025-ADJN (DIN No.202508DDZ4000000FC2D) issued by the Principal Commissioner of Customs (Preventive), Chennai, insofar as it mandates furnishing of Bank Guarantee equivalent to 100% of the alleged customs duty payable, in addition to execution of bond equivalent to the full determined value of the seized goods, as a condition for provisional release of Maize Popcorn seized by the Directorate of Revenue Intelligence, Delhi Zonal Unit vide Seizure Memorandum dated 25.08.2025.

2. The petitioner is a Proprietorship concern engaged in domestic trading of agricultural commodities, particularly maize and maize popcorn. Petitioner is registered dealer under GST laws bearing GSTIN No.33ANCPS1383D1Z9 and petitioner has also fixed place of business in Chennai.

3. It is submitted that on 11.07.2025, officers of the DRI, Delhi Zonal Unit, conducted a search at M/s Vinod Sai Agri Cold Storage LLP, Nallur Village, Chennai, and recovered 1,391 bags of maize popcorn bearing foreign markings indicating Nepal origin, which were stored in the name of the petitioner. The petitioner submitted that solely based on the foreign markings on the gunny bags used as packing material; it is alleged that these agricultural products, specifically maize, are being imported and stored at the facility.

4. Based on the facts above, the officers believed the goods were smuggled through the Indo-Nepal border without payment of the 50% Customs Duty under CTH 10059030. Consequently, they seized the goods via a seizure memorandum dated 25.08.2025.

5. Learned counsel for petitioner would submit that the petitioner never imported any goods and these goods are not imported goods, but the goods which have been procured within India and would also submit that these goods were purchased against GST Invoices, copies of which have been enclosed in the typed set of papers. Petitioner submitted a representation dated 28.11.2025 seeking provisional release. On the above representation, the impugned order of provisional release was passed wherein the following conditions have been imposed:

Specific Conditions:

•

The importer shall execute a Bond for Rs. 17,55,000/-, equivalent to the total determined value of the goods;

•

The importer shall furnish a Bank Guarantee (BG) for Rs. 8,77,500/-, equivalent to the total duty payable. The Bank Guarantee should be valid for a minimum period of one year, with an auto-renewal clause until the completion of adjudication proceedings; and •

The importer