C declaration forms cannot be withheld for State tax defaults when delegated rules add restrictions beyond the Central Sales Tax Act.

Rule 8(1-A)(f) of the M.P. Sales Tax (Central) Rules, 1957 was invalid to the extent it allowed withholding of C declaration forms for default in State Act returns or arrears of tax. The Court held that the rule-making power under the Central Sales Tax Act permits only rules consistent with the Act and limited to the prescribed manner of furnishing declarations, not additional substantive conditions or disabling restrictions. C forms are part of the machinery for securing the concessional inter-State sales tax rate, and State authorities cannot use their role under the Central Act to compel payment of State dues by blocking that statutory benefit.

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Issues: Whether rule 8(1-A)(f) of the M.P. Sales Tax (Central) Rules, 1957, in so far as it authorised withholding of C declaration forms on the ground of default in furnishing returns or arrears of tax under the State Act, was ultra vires section 8(4) read with section 13(3) and (4) of the Central Sales Tax Act, 1956.

Analysis: The rule-making power under section 13(3) and (4) of the Central Sales Tax Act, 1956, is confined to rules that are not inconsistent with the Act and that carry out its purposes. The scheme of section 8 shows that C forms are part of the machinery for obtaining the concessional inter-State sales tax rate, and the phrase 'in the prescribed manner' in section 8(4) permits prescription only of the particulars, form, and authority for furnishing the declaration, not the imposition of additional disabling conditions unrelated to the Central Act. The State authorities act only as agencies for assessment, collection, and enforcement under section 9(2), and the impugned rule could not be used as a device to realise State Act dues by obstructing the statutory benefit under the Central Act.

Conclusion: The impugned portion of rule 8(1-A)(f) was held ultra vires and invalid to the extent that it permitted withholding of C forms on the stated State Act defaults or arrears, and the petitioner was entitled to have its applications for C forms considered without those grounds being used against it.

Ratio Decidendi: Delegated rules under the Central Sales Tax Act cannot impose conditions for C-form issuance that are foreign to section 8(4) or are used to enforce State Act dues, since 'prescribed manner' does not authorise such additional substantive restrictions.

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