Customs Act, 1962 › Chapter IX — Warehousing

Section 58B. Cancellation of licence

Customs Act, 1962

Bare Act

Cancellation of licence. —

(1) Where a licensee contravenes any of the provisions of this Act or the rules or regulations made thereunder or breaches any of the conditions of the licence, the Principal Commissioner of Customs or Commissioner of Customs may cancel the licence granted under section 57 or section 58 or section 58A:

Provided that before any licence is cancelled, the licensee shall be given a reasonable opportunity of being heard.

(2) The Principal Commissioner of Customs or Commissioner of Customs may, without prejudice to any other action that may be taken against the licensee and the goods under this Act or any other law for the time being in force, suspend operation of the warehouse during the pendency of an enquiry under sub-section (1).

(3) Where the operation of a warehouse is suspended under sub-section (2), no goods shall be deposited in such warehouse during the period of suspension:

Provided that the provisions of this Chapter shall continue to apply to the goods already deposited in the warehouse.

(4) Where the licence issued under section 57 or section 58 or section 58A is cancelled, the goods warehoused shall, within seven days from the date on which order of such cancellation is served on the licensee or within such extended period as the proper officer may allow, be removed from such warehouse to another warehouse or be cleared for home consumption or export:

Provided that the provisions of this Chapter shall continue to apply to the goods already deposited in the warehouse till they are removed to another warehouse or cleared for home consumption or for export, during such period.

Judgments on Section 58B

  • Jms Mining Pvt Ltd vs Commissioner Of Customs-Indore — CESTAT, 6 Jan 2026. A private bonded warehouse licence under section 58 can be cancelled under section 58B only if the licensee violates the Act, Rules or a condition of the licence — the Commissioner cannot review his own or his…
  • Shiv Probuild Pvt Ltd vs Commissioner Of Customs-New Delhi Acc… — CESTAT, 6 Aug 2024. Violations of bonded warehouse licence conditions that are merely typographical, curable, or not breaches of any legal provision are not serious enough to warrant cancellation of the licence under section 58B, and…
  • Frigorifico Allana P Ltd vs Commissioner Of Customs-Nhava Sheva-I — CESTAT, 28 Jun 2024. Breach of conditions appended to a warehouse licence may warrant cancellation of the licence but not penalty under section 117, because imposition of penalty is in the realm of statutory enactment only and regulation 12…
  • Akshay Logistics vs Commissioner Of Customs-Nhava Sheva-I — CESTAT, 7 Jul 2025. Confiscation under section 111(j) fails unless the goods are established to have been removed from the warehouse after bonding without the proper officer's permission or in breach of its terms, and minor, rectified…
  • Tm International Logistics Limited vs -Patna(Prev) — CESTAT, 5 Dec 2024. Revocation of a warehousing licence under Section 58B(1) without giving the licensee an opportunity to cure a curable infraction — such as an audit-trail delay caused by circumstances beyond its control — is legally not…
  • Kundan Care Products Ltd vs Commissioner Of Customs-New Delhi Acc… — CESTAT, 31 Jul 2024. A penalty imposed under section 112 of the Customs Act for 'contravention' of statutory provisions is not a penalization for an 'offence', since offences and penalties are distinct categories; therefore, a licensee who…
  • Plus Max Duty Free Pvt Ltd vs Commissioner Of Customs (Preventive)… — CESTAT, 14 Jun 2024. Where goods are deposited in and removed from a shifted special warehouse under the supervision and with the knowledge of Customs officers, mere failure to amend the licence for the new premises does not justify…
  • Poonam Pundir vs C.C. Noida — CESTAT, 27 Mar 2024. Section 158 of the Customs Act, 1962 is an enabling rule-making provision under which no penalty can be directly imposed, and a warehouse licence cannot be cancelled on mere possibilities of intention without…
  • Global Spirits vs The Commissioner Of Customs… — Gauhati High Court, 8 Apr 2019. An ex parte order entailing adverse civil consequences — such as cancellation of a private bonded warehouse licence and imposition of penalty — must be set aside so that the affected party is first afforded an…
  • M/S.Acme Warehousing Pvt Ltd vs The Principal Commissioner Of Customs… — Madras High Court, 27 Jul 2020. 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…