Bhagwati Products Ltd Vs Commissioner of Customs (Pre.) (CESTAT Allahabad)
CESTAT Allahabad held that the case of imposition of penalty under section 114A of the Customs Act would be covered under regulation 3 (2) (c) and hence appellant is not eligible for grant of License for Private Warehouse under section 58 of the Customs Act.
Facts- The appellant had applied for grant of License for Private Warehouse under section 58 of the Customs Act. On scrutiny of documents, it was noticed that case is pending before appellant involving duty demand of Rs. 4,45,47,063/- along with penalty u/s. 114A of the Act. Since Tribunal dismissed the appeal of the appellant, the said matter is pending before Hon’ble Supreme Court. Thus, it was concluded that since the appellant has been penalized under the Act, they are not eligible for the license in terms of Regulation 3(2)(c) of Private Warehousing Licensing Regulation.
In the present case the only issue involved is in respect of interpretation of Regulation 3 (2) of the PWLR, which provides for the conditions under which the Licence under Section 58 of the Act, could not have been issued to the appellant. Impugned communications after analysis of the said Regulation has concluded that in case where penalty has been imposed under Section 114A of the Customs Act, 1962, the case would be covered under Regulation 3 (2) (c) and appellant is not eligible for the grant of Licence under Section 58.
