Bona fide use of declaration forms governs withholding of future forms when a valid statutory ground exists.

Declaration forms could be withheld where the dealer's earlier use of such forms showed lack of bona fide compliance. Although the authority's stated reason for refusing the forms was not the correct basis, the record disclosed a valid statutory ground under rule 27AA(2)(a)(i) of the Bengal Sales Tax Rules, 1941. The returns filed by the dealer were not meant to be scrutinised at the stage of issuing declaration forms. Because a lawful ground existed to withhold further forms, writ interference was not justified and the refusal was upheld.

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Issues: Whether the refusal to issue declaration forms could be sustained where the dealer had earlier used declaration forms without bona fide compliance and the writ court should interfere with that decision.

Analysis: The application for declaration forms was considered in the light of the dealer's earlier use of forms for purchases relating to bus and tractor transactions. The returns filed by the dealer were not to be scrutinised at the stage of issuing declaration forms, so the ground mentioned by the authority was not the correct basis. However, the record showed that the dealer had previously used the forms in a manner indicating absence of bona fide use, which attracted the power to withhold further forms under rule 27AA(2)(a)(i) of the Bengal Sales Tax Rules, 1941. Since the authority could validly withhold the forms on that ground, interference in writ jurisdiction was not justified.

Conclusion: The refusal to issue declaration forms was upheld, and the writ petition failed.

Final Conclusion: The discretionary writ remedy was declined because the petitioner's earlier conduct furnished a valid basis for withholding the declaration forms.

Ratio Decidendi: Where declaration forms were not bona fide used previously, the authority could lawfully withhold further forms, and writ interference is unwarranted if a valid statutory ground exists even though the stated reason is incorrect.

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