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1993 (8) TMI 79

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..... it was re-issued on 17-10-1984 for a period of one year from 17-10-1984 to 16-10-1985, but subsequently, it was renewed upto 16-10-1986. The licence was further renewed upto 31-1-1993. For the purpose of renewal of the licence for a further period of 3 years, he made an application dated 14-12-1992. That application was rejected on the ground that the petitioner did not satisfy the norms stated in public notice No. 307/85. Aggrieved by that order, the petitioner filed the writ petition. As already pointed out, the learned single Judge has allowed the writ petition. The reasons given by the learned single Judge are as follows : (a) The order is not a speaking order, in as much as it does not give any reason. (b) It is not open to the Collector to insist upon complying with the norms stated in Public Notice 307/85 while granting renewal. For the second reason, the learned single Judge has relied upon a decision of this court in W.P. No. 13722 of 1989 rendered by a learned single Judge. At this stage itself, we may point out that in writ petition No. 13722 of 1989 (Sugesan Co. (P) Ltd., v. The Collector of Customs), a learned single Judge of this court has held as follows: " .....

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..... ccord renewal of the licence for a period of three years from 14-7-1989 to 13-7-1992." Thus, it has been held by the learned single Judge that at the stage of renewal of the licence, the norms stated in Public Notice No. 307/65 cannot be insisted upon. In order to decide whether it is open to the collector to insist upon compliance with the norms stated in Public Notice No. 307/85 which are more or less similar to those prescribed for grant of licence, we have to refer first to the old and the present rules. The Customs House Agents Licensing Regulations are framed under Section 146(2) of the Customs Act, 1962. The present Regulations are the Customs House Agents Licensing Regulations, 1984 which will be hereafter referred to as the 1984 Regulations. Earlier to 1984 Regulations the Customs House Agents Licensing Regulations, 1965 were in force. These regulations will be hereinafter referred to as 1965 regulations were as follows: x x x x x x x From the aforesaid 1965 Regulations, it is clear that before granting the licence, the Collector was required to satisfy himself that the applicant satisfied all the conditions laid .....

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..... with the period of validity and renewal of a regular licence. It is necessary to re-produce Regulation 12, because we are now concerned with the renewal of licence, which reads thus : "12. Period of validity of a regular licence : - (1) A licence granted under Regulation 10 shall be valid for a period of three years. (2) On an application made in this behalf to the Collector before the expiry of the period referred to in sub-regulation (1) he may renew the same for a further period of three years. (3) The fee for renewal of a licence under sub-regulation (2) shall be Rs. 3,000." Thus, from the aforesaid Regulation 12 of 1984 Regulations, it is clear that the validity of a Regular licence is for a period of 3 years. It is open to the licensee to make an application for renewal of the Regular licence before the expiry of the licence period. The Regular licence can be renewed for a further period of 3 years. There is no provision contained in Regulation 12 for renewal of the Regular licence once renewed, for a further period of 3 years and thereafter, every 3 years as provided in sub-Regulation (3) of Regulation 13 of 1965 Regulations. 3.2 It is contended on behalf of the ap .....

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..... ence. It is the licence which is granted under Regulation 10. Sub-regulation (1) of Regulation 10 makes it clear that the licence shall be valid for a period of 3 years. Therefore, a reading of sub-regulations (1) and (2) of Regulation 12 together makes it clear that the licence that is renewed or Regulation 12(2) is the one granted under Regulation 10 and such licence can be renewed only once for a further period of 3 years. Thus, taking into consideration the 1965 Regulations and the change effected in the 1984 Regulations, we come to the following conclusions : (i) Licence granted under Regulation 10 of 1984 Regulations can be renewed once is for a period of 2 years and no further renewal is permissible. (ii) As the regular licence is granted under Regulation 10 to the holder of temporary licence who satisfies stringent conditions laid down in Regulation 6 and Regulation 12 does not prescribe that the applicant seeking first renewal of the licence should satisfy any of the conditions laid down in Regulations 6, 8, 9 and 10, it is not open to the Collector to insist upon that the applicant should satisfy the conditions prescribed for granting of regular licence, while seeki .....

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..... bitrary exercise of discretion. Therefore, point No. (i) is answered in the negative. Point No. (ii) : 4A. The reasons given by us while answering point No. (i) also cover this point. We have already pointed out that The words "renew the same" used in sub-regulation (2) of Regulation 12 refer to the licence granted under Regulation 10, because sub-regulation (1) of the Regulation 12 also refers to the licence granted under Regulation 10 and it is with reference to that licence, the renewal provision is made in sub-regulation (2) of Regulation 12. That being so, in the instant case, after the coming into force of 1984 Regulations, the respondents' licence has been renewed twice. The period covered is also more than six years. Therefore, we are of the view that the further renewal of the licence under Regulation 12(2) of 1984 Regulations is not permissible. Point No. (ii) is answered accordingly. We may also point out that the decision rendered by Raju, J., in W.P. 13722 of 13722 of 1989 to the extent it is applicable to the renewal of licence for the first time, would accord with the view taken by us, but the same will not be applicable for the second renewal, as we have already .....

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