Special Bonded Warehouse Licence cancellation fails where cost recovery charges are paid and no licence-condition breach is established.

Cancellation of a Special Bonded Warehouse Licence for alleged non-payment of differential cost recovery charges was unsustainable because the charges had been paid and no breach of licence conditions under Notification No. 72/2016-Customs (N.T.) was established. The cancellation was therefore set aside in favour of the assessee.

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Issues: Whether cancellation of the Special Bonded Warehouse Licence was sustainable for non-payment of differential cost recovery charges.

Analysis: The demand was not disputed because the differential cost recovery charges had been paid. No breach of the licence conditions prescribed by Notification No. 72/2016-Customs (N.T.) dated 14.05.2016 was established.

Conclusion: Cancellation of the Special Bonded Warehouse Licence was unsustainable and was set aside, in favour of the assessee.

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