2017 (1) TMI 468 - AT - Customs

Suspension of Warehousing License Upheld Under Customs Act

Nitco Ltd. Versus Commissioner of C. Ex., Mumbai-II

The Member (J) upheld the suspension of the warehousing licence under Section 58(3) of the Customs Act, 1962, due to an ongoing case enquiry against the ... Suspension of the warehousing licence- suspension on the ground that some case enquiry was going on against the appellant - Held that: - It is provided under the sub-section (3) of Section 58 of the Customs Act, 1962 that - “Pending an enquiry whether a licence granted under sub-section (1) should be cancelled under clause (b) of sub-section (2), the Assistant/Deputy Commissioner of Customs may suspend the licence” - The licence was suspended exercising the power given under Section 58(3) of the Customs Act, 1962 - no illegality in the order of the Assistant Commissioner suspending the warehousing licence of the appellant - appeal dismissed - decided against appellant. Issues:Suspension of warehousing licence under Section 58(3) of the Customs Act, 1962 pending case enquiry against the appellant.Analysis:The appellant's appeal was against the suspension of their warehousing licence due to a case enquiry initiated against them. The appellant argued that since their licence had expired and they had applied for renewal, the suspension was not warranted. The appellant's representative contended that the action of the adjudicating authority was incorrect and unsustainable. On the other hand, the Revenue, represented by the Assistant Commissioner, asserted that whether expired or explicitly suspended, the appellant was barred from using the warehousing facility, justifying the suspension. The Revenue relied on a Tribunal decision to support their stance.Upon careful consideration, the Member (J) found that the licence was suspended by the adjudicating authority due to an ongoing case enquiry against the appellant. Referring to Section 58(3) of the Customs Act, 1962, which allows suspension pending an enquiry for potential cancellation, the Member noted that there was no order for cancellation of the licence, and the appellant's renewal application was pending. The suspension was deemed legal under the authority granted by the Act. Consequently, the Member concluded that the suspension of the warehousing licence was lawful, and the impugned order was sustained, leading to the dismissal of the appeal.This judgment highlights the legal provisions governing the suspension of licences under the Customs Act, emphasizing the authority granted to officials pending enquiries. The decision underscores the importance of adherence to statutory regulations and the implications of ongoing case enquiries on licensing actions.