Wine Stock Discrepancies in Bonded Warehouse: CESTAT finds License Cancellation Too Harsh

The CESTAT (Customs, Excise, and Service Tax Appellate Tribunal) has found that the "cancellation of a bonded warehouse license was too harsh" despite wine stock discrepancies. The tribunal partially allowed the appeal, upholding a ₹4 lakh penalty instead of license cancellation. While acknowledging shortages in imported wine consignments, the tribunal noted that the appellant was not a habitual offender, had paid the duty on the missing items, and no collusion or intent to evade duty was proven. This decision emphasizes proportionality in penalties, deeming license cancellation excessive for procedural lapses without clear intent of illicit activity.