ALO Law Office- IDT Tax I Arbitration I Litigation
Date: 16.07.2025
CESTAT Chandigarh Sets Aside Warehouse License Cancellation
In a significant ruling favoring the rights of bonded warehouse license holders, the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Chandigarh Bench, has set aside the cancellation of the Public Bonded Warehouse License of M/s Ajay Wines & Spirits, while upholding a monetary penalty of βΉ4 lakhs under Section 117 of the Customs Act, 1962.
Background of the Case
- M/s Ajay Wines & Spirits was operating under a Public Bonded Warehouse License No. 08/2023, granted under Section 57 of the Customs Act.
- Two separate stock verifications conducted in April 2024 revealed shortages of imported liquor cases:
- 04.04.2024: 339 cases found short; duty of βΉ17.14 lakhs was deposited.
- 23.04.2024: Additional shortages observed related to stock of M/s Castle Spirits Pvt. Ltd.
- A Show Cause Notice was issued proposing:
- Cancellation of the warehouse license under Section 58B
- Penalty under Section 117 for contravention of warehouse regulations
The Principal Commissioner of Customs, Ludhiana, vide Order-in-Original dated 21.05.2025, imposed the maximum penalty and cancelled the warehouse license of the appellant.
This Article has been written by Shri Ravi Shekhar Jha, Advocate Delhi High Court based on his interpretation of the law. He can be reached at his email id intelconsul@gmail.com or on his Mobile +91-9999005379.
Source: CESTAT Chandigarh
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