Gold dealers licence refusal failed where turnover data and business experience supported eligibility for additional licensing.

Refusal of a gold dealers licence was unsustainable where turnover data did not support an assumed decline and later licensing in the same town showed additional licences were still possible. The Tribunal also found that experience was adequately established by evidence of the family's pre-control gold business, the local Sarafa Committee certificate and later recognition as a goldsmith. On that record, the grounds of no scope for further licensing and lack of requisite experience both failed, and the licence was directed to be issued.

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Issues: (i) Whether the rejection of the application for a gold dealers licence on the ground that there was no scope for increasing the number of licensed dealers in the town was justified under Rule 2(f) of the Gold Control (Licensing of Dealers) Rules, 1969. (ii) Whether the appellant lacked the requisite experience for grant of the licence.

Issue (i): Whether the rejection of the application for a gold dealers licence on the ground that there was no scope for increasing the number of licensed dealers in the town was justified under Rule 2(f) of the Gold Control (Licensing of Dealers) Rules, 1969.

Analysis: The turnover figures for the relevant three years showed an overall increase, and the basis adopted by the lower authority for inferring a falling trend was not supported by the record. The later grant of a licence to another dealer in the same town further supported the view that the field was not closed to additional licensing. The Tribunal also applied the earlier High Court decision relied upon as being on substantially similar facts.

Conclusion: The rejection on the ground of lack of scope for additional dealers was not justified and was set aside in favour of the assessee.

Issue (ii): Whether the appellant lacked the requisite experience for grant of the licence.

Analysis: The record showed that the family had been engaged in the gold business prior to the commencement of gold control restrictions, and the appellant's involvement in the ancestral business was supported by the certificate of the local Sarafa Committee and by the subsequent recognition as a goldsmith. On that material, the alleged want of experience could not be sustained.

Conclusion: The finding of lack of experience was rejected in favour of the assessee.

Final Conclusion: The appellant was held entitled to the grant of a gold dealers licence, and the lower authorities were directed to issue the licence.

Ratio Decidendi: Where the licensing criteria are not negatived by the turnover data and the applicant's experience is supported by the record, refusal of a gold dealers licence cannot be sustained merely on an unfounded assumption of no further licensing scope.

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