1987 (3) TMI 217 - AT - Indian Laws

Tribunal orders gold dealer license after finding rejection unjustified.

The Tribunal overturned the rejection of the appellant's application for a gold dealers license, citing an increasing trend in turnover data and the ... Gold Dealers licence Issues:- Rejection of application for a gold dealers licence based on town's need.- Assessment of turnover data for determining the need for additional dealers.- Evaluation of appellant's experience in gold dealing.- Comparison with the issuance of a license to another firm.- Interpretation of turnover data and experience to justify granting the license.Analysis:The appeal pertains to the rejection of an application for a gold dealers license by the appellant in a town where he sought to establish a business. The rejection was based on the assessment that there was no necessity for additional licensed dealers in the town, as per the turnover data of existing dealers in the preceding years. The original authority concluded that the turnover per dealer per year had not shown a significant increase, justifying the denial of the license.The appellant contested this decision, arguing that the turnover data actually indicated an increasing trend, supported by the issuance of a license to another firm and the appellant's own certification as a goldsmith. The appellant also claimed ancestral experience in gold dealing, which was supported by a certificate from the local Sarafa Committee. Additionally, reference was made to a Kerala High Court judgment to support the argument that the denial of the license was unjustified.On the issue of the appellant's lack of experience, it was clarified that the appellant's family had a history of gold business before the imposition of Gold Control Rules, and the appellant had been involved in gold dealings and manufacturing, as evidenced by the certificates obtained. The respondent, however, argued that the license granted to another firm was not relevant to the appellant's case, as the data considered for each application period differed.Upon careful consideration of the arguments presented, the Tribunal found that the turnover data did not support the original authority's conclusion of a decreasing trend, as there was a clear increase in turnover over the years. The Tribunal also rejected the notion of the appellant lacking experience, given the family's background and the appellant's certifications. The decision to grant a license to another firm further supported the appellant's case. Ultimately, the Tribunal relied on the Kerala High Court judgment and directed the lower authorities to issue a gold dealers license to the appellant, overturning the initial rejection.