Deepak Fertilisers and Petrochemicals Corporation Ltd. v. Union of India
Written by CA Minal Buch, Chartered Accountant, Lead Brain and Founder
Reviewed by Adv Parth Mehta, Advocate, Lead Brain
Last reviewed 31 October 2026
Facts
Customs rejected Deepak Fertilisers' application for a private warehouse licence under Section 58, relying on Regulation 3(2)(c) of the Private Warehouse Licensing Regulations, 2016 and on cases pending against the company under the Customs, Central Excise and CGST Acts. None of those cases sought to penalise the company or its officers for an offence.
Decision
The High Court held that the department had confused a contravention of statutory provisions, which may be disputed in litigation, with an offence. Mere pendency of tax litigation is not an offence under Regulation 3(2)(c). The department was directed to issue the licence if the other conditions were met.
What it means in practice
Ongoing tax disputes do not by themselves disqualify an applicant from a private warehouse licence, which is the base licence for a MOOWR unit. Applicants with pending matters should still disclose them, and be ready to show that none involve offence proceedings.
This summary is general information, not tax, legal or professional advice.