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Where a licensing authority is of opinion that it will not be in the public interest to furnish reasons for the refusal, renewal, variation of conditions, revocation or suspension, of a licence, to the applicant, the recorded reasons therefore and the facts of the cases shall be communicated by the him to the appellate authority.

Comment : The reasons for refusal of licence whether right or wrong are not to be examined under Art. 226 of the Constitution of India unless they are preverse or mala fide.
Rule 41 although stating that the authority to grant a licence may in his discretion refuse yet the rules provide that such discretion is controlled by two significant factors, one being that the reasons for refusal must be stated under rule 41-B and the other being that such discretion is revisable and appealable. It is therefore not an arbitrary or uncontrolled discretion. It is held that rule 41 is intra-vires Sec. 17 of the Indian Arms Acts.

7.    Direction and control over licensing authorities

All licensing authorities shall work under the direction and control of their respective appellate authorities.

8.    Restriction in granting licenses for acquisition, possession or carrying of arms or ammunition of Category-I

  1. No Licence shall be granted for acquisition, possession or carrying of arms or ammunition of categories I (b), I (c) and I (d) Unless they have been lawfully imported into India or are being imported into India with the sanction of the Central Government.
  2. A licence for acquisition, possession or carrying of ammunition of categories I (b), I (c) shall be granted only if the licensing authority is satisfied that the ammunition is to be used with rifles or muskets which are lawfully possessed for sporting purposes or with pistols or revolvers which have been lawfully imported into India; and the amount of ammunition which the licensee may possess during each period of twelve months immediately succeeding the date of grant of licence shall be entered in the licence.

9.    Copies of Licenses of Categories I and II to be sent to certain authorities

A copy of every licence granted for arms or ammunition of categories I (a), I (b), I (c), I (d) and II shall for with be sent -

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