Commissioner of Cus. & C. Ex. vs Anand Freight Overseas Pvt. Ltd.

V. Ramasubramanian, J.—This appeal is by the Revenue under Section 130A of the Customs Act, 1962, raising a question of law as to whether a nonexistent licence could be revoked retrospectively and whether on the basis of a non-existent licence, forfeiture of security deposit could be ordered. Heard Mr. S. Thirumavalavan, learned Senior Panel Counsel for the appellant. Despite service of notice, the respondent has not chosen to enter appearance.

Admittedly, the licence of the first respondent expired on 21-3-2006. The revocation was ordered on 1-7-2006 to have retrospective effect. The licence was not renewed after 21-3-2006. In other words, on and from 22-3-2006, the first respondent has ceased to hold a valid licence. Generally, a licence cannot be revoked with retrospective effect. Once the licence expires on a particular date, the question of revoking the licence after the expiry of the period of licence would not arise. In other words, the question of law raised is to be answered to the effect that a non-existent licence could not be revoked retrospectively. But, in this case, the question raised has become one of mere academic importance since the licence was not renewed. Therefore, the question is answered to the effect that licence cannot be revoked retrospectively, especially, after its expiry.