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Issues: (i) Whether the revocation of the CHA licence was justified on the ground that the licensee had violated the obligations under the CHA Licence Regulations, 1984, particularly by not obtaining independent authorisation and by conducting business through an unapproved person; (ii) Whether the licence could be refused renewal or revoked notwithstanding the plea that the original licence had already expired.
Issue (i): Whether the revocation of the CHA licence was justified on the ground that the licensee had violated the obligations under the CHA Licence Regulations, 1984, particularly by not obtaining independent authorisation and by conducting business through an unapproved person.
Analysis: Regulation 14(a) requires authorisation from each independent exporter, while Regulation 14(b) requires the CHA to transact business personally or through an employee approved by the Assistant Commissioner. On the facts, the business was found to have been routed through another entity and the CHA himself was not attending to the work, nor was the work entrusted to an approved employee. The record therefore established non-compliance with the obligations governing conduct of CHA business. Since renewal under Regulation 12 depends upon satisfactory performance and absence of misconduct or breaches of Regulation 14, the violation furnished a valid basis for action.
Conclusion: The revocation was justified and the finding of violation under Regulations 14(a) and 14(b) was upheld, against the assessee.
Issue (ii): Whether the licence could be refused renewal or revoked notwithstanding the plea that the original licence had already expired.
Analysis: Regulation 12 contemplates renewal of a licence and permits refusal where there is misconduct or non-compliance with the obligations specified in Regulation 14. The existence of a pending renewal application did not prevent consideration of the licensee's conduct for the purpose of renewal or revocation. The regulatory scheme allowed the authority to act on proven misconduct even though the licence had reached its expiry date in the meantime.
Conclusion: The plea based on expiry of the licence was rejected, and the revocation order was sustained.
Final Conclusion: The appeal failed because the regulatory violations were established and the authority was entitled to revoke the CHA licence and reject renewal.
Ratio Decidendi: Where a CHA fails to obtain the required authorisations and conducts business through an unapproved person, such non-compliance amounts to misconduct justifying refusal of renewal and revocation under the governing licence regulations.
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