TMI Blog1973 (4) TMI 50X X X X Extracts X X X X X X X X Extracts X X X X ..... itioner 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 challenged order are extraneous and irrelevant and in that context, he complains that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 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 such amounts and under such conditions as the Collector approves, binding himself to pay th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... etitioner by directing the petitioner to comply with the condition internally prescribed by the Rule itself to ensure good behaviour on the part of the licensee. No such attempt has been made. The respondent rejected the application on capricious considerations and, I do not think that the application made by the petitioner was considered in a manner known to law. Whilst, therefore, removing the order as prayed for, I direct the respondent to restore the application made by the petitioner to file and deal with it in accordance with law and in the light of the judgment as above, and particularly, bearing in mind the various limbs of Rule 140, which by themselves, ensure good behaviour on the part of licensees. The writ petition is allowed ac ..... X X X X Extracts X X X X X X X X Extracts X X X X
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