1973 (4) TMI 50

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....r the storage of excisable goods on which duty has not been paid. On 1-11-1972 the petitioner was confronted with a show cause notice by the respondent as to why his application for the grant of a licence should not be rejected on various grounds, which I shall presently advert to. The petitioner replied on 7-11-1972, characterizing many of the objections raised as not directionable and sought again, for the grant of the licence. By the impugned order the respondent rejected the application for the grant of the licence. 2.The petitioner's case is that he has complied with all the formalities which are to be observed in connection with an application for the erection of a private warehouse and the reasons given by the Collector in the cha....

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....cence did not behave properly, the apprehension in the mind of the Collector was that the son also would follow suit. 4.The only question to be considered is whether the grant of a licence under Rule 140 of the Central Excise Rules is vested in the Collector without any guidelines therefor and if there is an arbitrary or capricious exercise of such power, the court's hands could not reach such actions and correct them if it is necessary. Under Rule 140, no doubt, the Collector has the discretion to grant licences for the creation of private warehouse for the storage of excisable goods. But, while considering such applications, he could direct the applicant to furnish a bond in the proper form with such surety or sufficient security in su....