Legal principle

Under Section 58B(4) of the Customs Act, 1962, once a warehouse licence is cancelled, the goods warehoused in the premises must be removed to another warehouse or cleared for home consumption or export within seven days from the date of service of the cancellation order on the licensee.

Court decision

The court refused withdrawal simplicitor, vacated the status quo order dated 10.06.2020, confirmed the impugned proceedings dated 29.05.2020 cancelling the warehouse licence, dismissed the writ petition and connected miscellaneous petitions with no costs, and directed the Customs Authorities to pursue clearance of the warehoused goods, with compliance to be reported on 25.08.2020.

Facts

M/s. Acme Warehousing Pvt Ltd held warehouse licence No.CO58 to operate a public customs bonded warehouse at No.675, 200 Feet Inner Ring Road, Madhavaram, Chennai. The Assistant Commissioner of Customs (Bonds), Chennai-V, cancelled that licence by proceedings F.No. S4/1089/2010-Bonds-C dated 29.05.2020. The company filed a writ petition under Article 226 seeking certiorari to quash the cancellation and to compel renewal/extension of the licence, and obtained a status quo order on 10.06.2020. The premises contained goods of importers lying in the warehouse, and the landlord (third respondent) raised the issue of rent arrears against the petitioner. When the matter was heard, the petitioner sought to withdraw the writ petition.

Key provisions

• Section 58B, Customs Act, 1962 — Cancellation of licence