1982 (11) TMI 58 - HC - Customs

Court rules against company's late license renewal application, must apply for fresh license under Customs Act regulations.

PEIRCE LESLIE INDIA LTD. Versus COLLECTOR OF CENTRAL EXCISE & CUSTOMS

The High Court upheld the rejection of a public limited company's license renewal application by the Collector of Central Excise and Customs. The company ... Import licence - Renewal of Issues:1. Rejection of license renewal application by the Collector of Central Excise and Customs.2. Appeal to the Central Board of Excise and Customs.3. Interpretation of Regulation 13 of the Customs Act and Licensing Regulations.4. Validity of license renewal application made after the expiry of the initial license period.Detailed Analysis:1. The petitioner, a public limited company, applied for the renewal of its license nearly two months after its expiry. The Collector of Central Excise and Customs rejected the renewal application, stating that there was no valid license to be renewed at the time of application. The petitioner appealed to the Central Board of Excise and Customs, which upheld the rejection. The petitioner approached the High Court seeking to quash the orders and mandamus to grant the license that expired on 3rd February, 1981.2. The Custom House Agents License is governed by the Regulations under the Customs Act. The Regulations provide for the mode of application, rejection, grant, and renewal of licenses. The initial license is granted for one year, with the possibility of renewal for a further three years. Regulation 13 specifies the period of validity of the license and the procedure for renewal, including requirements such as financial solvency and income-tax clearance.3. The petitioner's counsel argued that the application for renewal should be made before the expiry of the initial one-year period, not after subsequent renewals. The counsel contended that a license renewed once could be renewed again after the initial three-year period. However, the court disagreed, stating that the regulation clearly determines the period of validity for renewals and does not automatically renew licenses after the first renewal. The court held that the regulations do not allow applications for renewal beyond the period of a license that has already been renewed once.4. The court concluded that the petitioner must seek a fresh license in accordance with the Regulations since the renewal application made after the expiry of the initial license period was not permissible under the existing framework. Therefore, the court rejected the writ petition without issuing a rule, as the impugned orders did not warrant interference based on the interpretation of Regulation 13 and the licensing provisions under the Customs Act.