1973 (4) TMI 50 - HC - Central Excise

Summary

Issues:
1. Refusal of license for a private warehouse by the Collector of Central Excise.
2. Allegations of irregularities by petitioner's parents affecting license decision.
3. Discretion of Collector in granting licenses under Rule 140 of Central Excise Rules.
4. Proper exercise of discretion by the Collector in considering license applications.

Analysis:
1. The petitioner sought a writ of certiorari to challenge the Collector of Central Excise's refusal to grant a license for warehousing excisable goods. The petitioner applied for an A.L. 5 license for a private warehouse, but faced objections leading to rejection of the application by the Collector.

2. The Collector based the rejection on past irregularities in warehousing by the petitioner's father and mother, raising concerns about the petitioner's eligibility and intentions. The Collector's decision was influenced by the belief that the petitioner's father might be the actual licensee, not the petitioner, due to past irregularities resulting in revenue loss to the state.

3. The court examined the discretion vested in the Collector under Rule 140 of the Central Excise Rules for granting licenses for private warehouses. The rule allows the Collector to set conditions for applicants, such as providing a bond and ensuring compliance with legal requirements. The court found that the Collector did not consider the application in line with the guidelines of Rule 140, focusing instead on past irregularities without assessing the petitioner's integrity or compliance with prescribed conditions.

4. The court emphasized that the Collector's discretion in granting licenses should be exercised judiciously and not capriciously. The decision should be based on proper evaluation of the applicant's qualifications and adherence to legal requirements. The court concluded that the rejection of the petitioner's application was arbitrary and directed the Collector to reconsider the application in accordance with the law and Rule 140 guidelines to ensure fair treatment and adherence to legal standards. The writ petition was allowed, with the direction for the Collector to process the application within a specified timeframe.