1982 (2) TMI 306 - Commissioner - Customs

Summary

Issues:
1. Consideration of application for a gold dealer's license under the Gold Control Act and Rules.
2. Rejection of the application based on Rule 2(f) of the Gold Control (Licensing of Dealers) Rules, 1969.
3. Appeal against rejection and directions given by the Appellate Collector.
4. Interpretation of statutory provisions and the role of Government norms in licensing decisions.
5. Application of principles of natural justice in decision-making process.

Analysis:
1. The case involved the consideration of an application for a gold dealer's license under the Gold Control Act and Rules. The applicant, a goldsmith with a certificate issued in 1980, applied for a license in 1981. The issue arose due to the applicant not being exempt from Rule 2(f) of the Gold Control (Licensing of Dealers) Rules, 1969, as the certificate was issued recently.

2. A show cause notice was issued to the applicant citing a declining trend in turnover of gold ornaments and a reduced demand for gold in the city. The Deputy Collector rejected the application based on these grounds. The applicant appealed to the Appellate Collector, who directed a reconsideration in light of Government directions.

3. During the appeal process, the applicant highlighted a Government order directing consideration of norms for licensing dealers to ensure a reasonable living. However, the Deputy Collector emphasized that statutory provisions like Sec. 27 of the Gold (Control) Act, 1968, and Rule 2 of the Gold Control (Licensing of Dealers) Rules, 1969, must be the basis for licensing decisions, not external norms.

4. The Deputy Collector clarified that Departmental instructions cannot override statutory provisions in licensing decisions. Emphasizing the importance of upholding the law over Government norms, the decision to reject the application was maintained based on the statutory requirements, without considering external guidelines.

5. In conclusion, the Deputy Collector rejected the application for the dealer's license, directing the applicant to claim a refund of the license fee paid. The decision was made in adherence to the statutory provisions, ensuring that the principles of natural justice were upheld by providing a fair opportunity for the applicant to present their case.