9911796707
TMI Blog1992 (3) TMI 81X X X X Extracts X X X X X X X X Extracts X X X X ..... ending enquiry and that ultimately the licence was also revoked on 8-1-1986. The said licence had its due term till 13-7-1986. In March, 1986, the petitioner filed WP 1453/86 to quash the order of revocation and by an order dated 3-4-1987, the said writ petition was allowed. The respondent herein who was the respondent in the writ petition filed writ Appeal 768 of 1987 and also filed C.M.P. 8676/87 for stay. The Division Bench by its order dated 4-8-1987 rejected the said application. In such circumstances, the respondent issued a circular dated 12-8-1987 under which the petitioner was permitted to act under the licence already issued subject to the result of the writ appeal filed. It may be noticed even at this stage, that on 25-7-1987, WA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to impose any such conditions since the provision for renewal does not contemplate reconsideration of the matter afresh regarding the eligibility of the petitioner at the stage of renewal. 4. Mr. P. Narasimhan, Principal Standing Counsel for the Central Government, while reiterating the stand taken in the counter affidavit, contended that though generally regular licences of the nature are renewed for 3 years on fulfilling the minimum prescribed business, since the petitioner firm could not fulfill the minimum business standards prescribed for a year, the same was renewed only up to 12-8-1990, giving an opportunity to show improvement in their business outturn and the respondents have every right to impose such condition for further renewa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 984 amended from time to time are statutory regulations made by the Central Board of Excise and Customs, in exercise of its powers under Section 146(2) of the Customs Act of 1962. Regulation 4, provides for inviting applications for the grant of licence, thereas, regulation 5 provides the requirements of an application and regulation 6 provides the conditions to be fulfilled by the applicant. The further regulations provide for scrutiny of applications for licence and regulation 8 provides for the grant of temporary licence and examination of the holder of such temporary licence. The details regarding the examinations to be undertaken are also prescribed in regulation 9. Regulation 10, provides for grant of regular licence and stipulates th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... period of licence even at the stage of renewal. What cannot be done at the initial stage, cannot be permitted to be done, even at the renewal stage. If the stand of the respondent that there could be a renewal for a lesser period is to be countenanced, it would in substance be accepting the position that the period of grant or renewal would be at the will or discretion of the concerned authority. Such a position, cannot be approved since it would run counter to the specific provisions contained in the statutory regulations themselves. The renewal therefore if once granted, has to be for a further period of 3 years and could not have been for a lesser period. 7. The next question for consideration would be, as to whether at the stage of ren ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ulations themselves and there cannot be any scope for implying such a power, either in the licensing authority to impose such conditions or infer an obligation and responsibility on the part of the licensee. Having regard to the nature of the problem involved, the mere laudability of the purpose or object to insist upon such a condition alone, cannot justify the legality or propriety of such imposition. For all the reasons stated above. I am of the view, that the licensing authority committed an error, in not only restricting the period of renewal to one year but also imposing the condition visualised under regulation 10(l)(a) read with the Notification No. 307 of 1985 dated 4-12-1985 for further renewal. Consequently there shall be a direc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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