question

@PradeepkumarMyakalaiCORECIS-0370 Thanks for posting in our Q&A.

Based on my research, for this issue that remove license, it seems we can make it in Microsoft 365 admin center portal if you have a Global admin user.
https://docs.microsoft.com/en-us/microsoft-365/admin/manage/remove-licenses-from-users?view=o365-worldwide

Then we can assign licenses to another user.
https://docs.microsoft.com/en-us/microsoft-365/admin/manage/assign-licenses-to-users?view=o365-worldwide

Hope it will help.

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"Before Customer uses software under a License, it must assign that License to a device or user, as appropriate. Customer may reassign a License to another device or user, but not less than 90 days since the last reassignment of that same License, unless the reassignment is due to (i) permanent hardware failure or loss, (ii) termination of the user’s employment or contract or (iii) temporary reallocation of CALs, Client Management Licenses and user or device SLs to cover a user’s absence or the unavailability of a device that is out of service. Customer must remove the software or block access from the former device or to the former user. SA coverage and any Licenses that are granted or acquired in connection with SA coverage may be reassigned only with the underlying qualifying License. Additional terms apply to the reassignment of Windows desktop operating system per device licenses, as detailed in the Windows Product Entry"