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1993 (8) TMI 79 - HC - Customs

Issues Involved:
1. Whether at the time of renewing the customs house agent's licence, the Collector of Customs can insist that the applicant should satisfy the conditions laid down in Public Notice No. 307/85.
2. Whether the second renewal of such licence is permissible.

Issue-wise Detailed Analysis:

Issue 1: Conditions for Renewal of Customs House Agent's Licence

The primary issue is whether the Collector of Customs can insist upon the applicant satisfying the conditions laid down in Public Notice No. 307/85 at the time of renewing the customs house agent's licence. The learned single Judge previously ruled that the Collector cannot insist on these conditions during renewal, relying on a precedent set in W.P. No. 13722 of 1989, which stated that the conditions for the initial grant of a licence cannot be re-imposed at the renewal stage unless explicitly provided for in the regulations. The 1984 Regulations, which replaced the 1965 Regulations, do not stipulate that the stringent conditions for the initial grant of a licence must be met again at renewal. The 1984 Regulations only require the licensee to apply for renewal before the expiry of the current licence, without imposing additional conditions.

The court concluded that the Collector's discretion to renew the licence should not be exercised arbitrarily. The renewal is not automatic, but the Collector cannot impose the initial conditions for granting a regular licence during the renewal process. However, the Collector can refuse renewal if there are valid reasons, such as pending proceedings against the licensee or non-compliance with obligations under Regulation 14 of the 1984 Regulations. Therefore, the court answered this point in the negative, indicating that the Collector cannot insist on the conditions laid down in Public Notice No. 307/85 for renewal.

Issue 2: Permissibility of Second Renewal

The second issue concerns whether a second renewal of the customs house agent's licence is permissible under the 1984 Regulations. The court examined the language of Regulation 12, which specifies that a licence granted under Regulation 10 is valid for three years and can be renewed once for a further three years. The court noted that the 1984 Regulations do not provide for multiple renewals, unlike the 1965 Regulations, which allowed for indefinite renewals every three years.

The court concluded that the 1984 Regulations permit only one renewal of the licence for three years, making any subsequent renewals impermissible. In this specific case, the respondent's licence had already been renewed twice, covering more than six years, thus exceeding the permissible renewal period under the 1984 Regulations. The court clarified that while the decision in W.P. No. 13722 of 1989 supports the first renewal, it does not apply to a second renewal. Therefore, the court answered this point by stating that a second renewal is not permissible.

Conclusion:

The court allowed the appeal, setting aside the order of the learned single Judge, and ruled that the Collector of Customs cannot insist on the conditions laid down in Public Notice No. 307/85 during the renewal of a customs house agent's licence. Furthermore, the court held that a second renewal of the licence is not permissible under the 1984 Regulations. The respondent is, however, entitled to apply for a fresh licence without needing to meet the temporary licence and examination requirements again, as these were already fulfilled during the initial application process.

 

 

 

 

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