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Issues involved: Appeal against extension of warehousing licence term; Interpretation of Section 67 of the Customs Act, 1962; Consideration of genuine hardship in leasing of bonded area.
Extension of Warehousing Licence Term: The appeal was filed against the extension of the warehousing licence term for a warehouse in the airport. The licence was valid until 31-12-2009, while the bonded area lease expired on 31-7-2007. The respondent had corresponded with the Authority before the lease expiry, and despite the Assistant Commissioner's refusal to extend the lease on 8-8-2007 and issuance of a show cause notice on 21-1-2008, the learned Commissioner adjudicated the matter and granted the extension in the impugned order. Interpretation of Section 67 of the Customs Act, 1962: The reading of Section 67 of the Customs Act, 1962, revealed that there was no prohibition on the Commissioner to grant an extension of the lease based on the circumstances of the case. The record showed that the respondent had been in correspondence with the Department, demonstrating bona fide regarding the stock held. The appellant had not concealed or suppressed any details of unsold stocks, indicating compliance with legal obligations. Consideration of Genuine Hardship: The respondent faced difficulty in leasing the bonded area in Delhi International Airport Ltd. (DIAL), which prevented further occupation of the lease premise. The learned Commissioner acknowledged this genuine hardship and highlighted that in exceptional cases, the Customs Commissioner had the power to extend the warehouse lease term for a specified period, as done in this case for one year from the lease expiry. The Commissioner found no mala fide on the respondent's part, leading to the dismissal of Revenue's appeal.
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