Advance refusal of sales tax declaration forms is impermissible where concessional eligibility must be decided at assessment stage.

Blank declaration forms under the sales tax rules are issued only to facilitate purchase of raw materials for intended manufacture; at that stage, the authority cannot test whether the eventual sale will qualify for concessional tax under Section 3(3). The assessment of whether the selling dealer's turnover attracts the normal or concessional rate is a matter for assessment, not for advance decision when the form is sought. The authority therefore acted without jurisdiction in refusing the forms on the basis of a proposed future ineligibility, and the writ relief in favour of the assessee was upheld.

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Issues: (i) Whether the assessing authority could refuse to supply blank declaration forms under the sales tax rules at the stage of application on the ground that the assessee's proposed manufacture would not qualify for the concessional rate under Section 3(3). (ii) Whether the eligibility of the raw material sale for concessional tax under Section 3(3) could be determined at the stage of issuing the declaration form rather than at the assessment stage.

Issue (i): Whether the assessing authority could refuse to supply blank declaration forms under the sales tax rules at the stage of application on the ground that the assessee's proposed manufacture would not qualify for the concessional rate under Section 3(3).

Analysis: The declaration form under Rule 22 serves only to enable the purchasing dealer to buy raw material for use in the manufacture of goods falling within the statutory scheme. At that stage, the dealer merely indicates an intention to use the goods as component parts in manufacture. The form does not require the dealer to establish, nor does the rule authorize the department to decide, whether the eventual transaction will ultimately satisfy the requirements for the concessional rate.

Conclusion: The refusal to supply blank declaration forms was not justified.

Issue (ii): Whether the eligibility of the raw material sale for concessional tax under Section 3(3) could be determined at the stage of issuing the declaration form rather than at the assessment stage.

Analysis: The determination whether a sale is taxable at the normal rate or the concessional rate is part of the assessment of the selling dealer's turnover. The assessment authority has no jurisdiction, at the earlier stage of issuing a blank form, to pronounce upon a possible future claim or to decide whether the goods proposed to be manufactured would in fact attract the concession. Such questions arise only when the sale turnover is assessed under the Act.

Conclusion: The eligibility question had to be left for assessment and could not be decided at the form-issuance stage.

Final Conclusion: The departmental authorities acted without jurisdiction in refusing the forms, and the writ relief granted in the assessee's favour was upheld, leading to dismissal of the appeals.

Ratio Decidendi: Where a statutory declaration form is required only to facilitate a claimed concessional tax treatment, the authority issuing the form cannot adjudicate the substantive tax eligibility in advance; that determination belongs to the assessment stage.

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