By TIOL News Service

MUMBAI, AUG 29, 2016 : AN appeal has been filed against an action of suspension of the warehousing licence issued u/s 58(3) of the Customs Act, 1962 for the reason that there was some case enquiry initiated against the appellant.

It is informed that the warehousing licence expired on 31.3.2009 and the appellant had applied for renewal on 7.4.2009 and during the process of renewal, the licence earlier granted was suspended. It is, therefore, submitted that when after 31.3.2009 the warehousing licence was not in force, the suspension of the said licence was not warranted.

The AR submitted that irrespective of the fact whether the licencehad expired or not the resultant effect of suspension of licenceis that the appellant is barred from using the facility of warehousing. Moreover, the appellant had applied for the renewal of licence and in that context the suspension of licence is in order.

The Bench observed

"4. …I find that the licence was suspended by the adjudicating authority on the ground that some case enquiry was going on against the appellant. 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 suspended the licence". In the present case there is no order of cancellation of licence at the same time the appellant's application for renewal of licence was pending with the department. The licence was suspended exercising the power given under Section 58(3) of the Customs Act, 1962. I am therefore of the view that there is no illegality in the order of the Assistant Commissioner suspending the warehousing licence of the appellant. Therefore, the impugned order is sustainable…."

The Appeal was dismissed.

(See 2016-TIOL-2213-CESTAT-MUM )