1988 (1) TMI 194 - AT - Central Excise

Summary

Issues:
Appeal against rejection and cancellation of Gold Dealers Licence renewal.

Detailed Analysis:

1. Violation of Show Cause Notice Scope:
- The appellant contended that the order rejecting the renewal application was beyond the scope of the show cause notice, as it was based on Rule 3 of the Gold Control (Licencing of Dealers) Rules, 1969. However, the Collector's order was based on Section 27 read with Rule 3. The appellant argued that all 11 conditions in Rule 3 should have been considered, citing a previous decision. The Tribunal found that the show cause notice did address the contravention of Rule 3(f), making the order valid.

2. Interpretation of Rules 2 and 3:
- The appellant argued that Rules 2 and 3 were similar and all conditions in Rule 3 should have been considered for renewal. The Tribunal clarified that Rule 2 pertains to granting a license, while Rule 3 deals with renewal qualifications. The licencing authority can refuse renewal if any condition under Rule 3 is not met, not necessarily all conditions. The Tribunal rejected this contention.

3. Means of Livelihood and Natural Justice:
- The appellant claimed that refusal to renew the license would deprive them of their means of livelihood. The Tribunal noted the appellant's previous contraventions and penalties under the Gold Control and Customs Acts. Despite the appellant's profession being in the gold business, the Tribunal upheld the cancellation of the license, stating that the licencing authority acted within jurisdiction and did not violate natural justice principles.

4. Denial of Principles of Natural Justice:
- The appellant alleged a denial of natural justice, but the Tribunal found that the appellant had ample time to respond to the show cause notice and failed to do so. The appellant did not request a personal hearing, and the Tribunal deemed the process fair.

5. Dismissal of Appeals and Premature Order:
- The appellant's argument regarding the premature order based on pending appeals against adjudication orders was dismissed, as the Tribunal noted that the appeals were already dismissed by the Tribunal. The Tribunal found no merit in this argument and rejected the appeal.

In conclusion, the Tribunal upheld the Collector's decision to reject the renewal application and cancel the Gold Dealers Licence, dismissing the appeal based on the considerations of the show cause notice scope, interpretation of rules, means of livelihood, natural justice principles, and the dismissal of pending appeals.