Special Warehouse License Reinstated: Tribunal Finds Single Past Penalty Cannot Automatically Disqualify Applicant Under Section 129A

CESTAT held that the Principal Commissioner's rejection of the special warehouse license application was improper. The Tribunal found the appeal maintainable under Section 129A of the Customs Act, determining that the license rejection constituted an appealable order. While Regulation 3(2)(c) allows denial based on prior penalties, the Tribunal concluded that a single past penalty does not automatically disqualify an applicant, especially when no substantive concerns about the applicant's integrity or operational capabilities existed. The impugned order was set aside, effectively reinstating the appellant's right to seek a special warehouse license, with the Tribunal emphasizing a nuanced interpretation of regulatory disqualification criteria. .....

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