G.C.Mathur, J. - (1.) THESE two appeals are directed against the judgments of H. N. Seth, J. by which he has quashed a trade notice dated 15.2.1972 issued by the Government of India under Gold (Control) Act, 1968, and the notice dated 25-3-1972 issued by the Assistant Collector, Central Excise, Varanasi, in pursuance of the trade notice. Writ petition No. 3303 of 1972 was filed by the Uttar Pradesh Sarrafa Association which is an association of gold dealers of Uttar Pradesh, and four licensed dealers in gold. Writ petition No. 3485 of 1972 was filed by the All India Sarrafa Association and by a licensed gold dealer of Allahabad. Identical reliefs were asked for in the writ petitions. The questions, which arise for consideration, relate to the dealings between one licensed dealer and another. It appears that formally, licensed dealers in gold were permitted to send gold ornaments through travelling salesmen to other licensed dealers in gold for sale. The impugned trade notice states in paragraph 3 : "Considering all aspects of the matter, it has now been decided that since, in terms of the law now in force, a licensed dealer cannot transact business, except at his own licensed premises, the facility, under which he could send ornaments for sale outside his licensed premises through his salesman, should be withdrawn forthwith. You are requested to take necessary action and withdraw the concession from these dealers to whom it has been extended and to otherwise give publicity to these orders through a suitable trade notice."
(2.) IN pursuance of this trade notice, the Assistant Collector, Central Excise, Varanasi, on 25-3-1972 issued the following notice :- "It has now been decided by the Government of India that since, in terms of the law now in force, a licensed dealer cannot transact business, except at his own licensed premises, the facility, under which you could send ornaments" for sale outside your licensed premises, through your, salesmen, is withdrawn forthwith." A copy of this notice was forwarded to the Kashi Sarrafa Association, Varanasi. The trade notice issued by the Government of India and the notice issued by the Assistant Collector do not purport to lay down any new rule or control. Both of the purport to clarify the legal position and to inform the gold dealers that the law did not permit them to send ornaments for sale outside their licensed premises through salesmen. They also purported to withdraw the permission to do so which had earlier been granted. The only question, which arises for consideration, is whether the trade notice and the other notice set out the law correctly or not. Section 27 of the Gold (Control) Act by sub-section (1) provides that no person shall commence, or carry on, business as a dealer unless he holds a valid licence issued in this behalf by the administrator. Sub-sections (2) to (6) deal with the making of the application for licence, the procedure and the granting of the licence. Sub-section (6-A) empowers the Central Government to reduce the number of licences. Subsection (7) is material for this case and it reads thus:- "(7)(a). The Administrator shall specify, in each licence granted to a dealer, the premises in which such dealer shall carry on business and no other person shall carry on business as a dealer in the said premises. (b) A licensed dealer shall not carry on business as such dealer in any premises other than the premises specified in his licence."
(3.) CLAUSE (b) of sub-section (7) prohibits a licensed dealer from carrying on business any where, except in his licensed premises. It applies whether the licensed dealer does business with a private customer or with another licensed dealer. This clause places an absolute prohibition on a licensed dealer from doing the business of selling or of purchasing outside his licensed premises. Section 31 provides that no licensed dealer shall buy any article, ornament or primary gold from a person who is not a licensed dealer or refiner. This implies that one licensed dealer can buy from another licensed dealer. This may also imply that a licensed dealer, who wants to purchase any article, ornament or primary gold, may go to the premises of another licensed dealer to purchase it. But whether this is so or not we are not called upon to decide in this case. No provision in the Act has been brought to our notice, which permits a licensed dealer to go to the premises of another licensed dealer v to sell any article, ornament or gold to the other licensed dealer. Therefore, the prohibition imposed by clause (b) of sub-section (7) of section 27 against a licensed dealer going out of his licensed premises to sell any article, ornament or gold to any person is not relaxed by any provision of the Act even when the sale is to another licensed dealer. The trade notice dated 15-2-1972 correctly sets out the legal position when it says that a licensed dealer cannot send out ornament for sale outside his licensed premises through his salesmen. The learned Single Judge has interpreted clause (b) of sub-section (7) of section 27 to mean that a licensed dealer is not entitled to have any business premises which is not specified in his licence. He is of opinion that then a salesman of a gold ornament dealer visits the premises of another dealer with the object of selling ornaments to him, it cannot be said that the salesman carries on the business of selling ornaments in the premises of the other dealer in contravention of clause (b). We are unable to agree with the learned Single Judge. Clause (b) confines a licensed dealer to do business only in the licensed premises. If the interpretation put by the learned Single Judge were correct, then every licensed dealer would be entitled to go to his customers to sell ornaments etc. In their premises, whether the customers are private buyers or other licensed dealers. In this interpretation, the prohibition of clause (b) becomes totally nugatory. We thick that clause (b) prohibits a licensed dealer from carrying on business anywhere, except in the licensed premises, and this prohibition is not relaxed by any provision of the Act even in the case where the licensed dealer does business with another licensed dealer.;