Pendency of eligibility certificate proceedings cannot by itself block declaration forms or justify tax demand as a condition.

Pendency of an application for grant or renewal of an eligibility certificate did not, by itself, justify withholding declaration forms under Rule 27AA of the Bengal Sales Tax Rules, 1941. The authorities could examine only whether the dealer had defaulted in filing returns and whether the forms were bona fide required; pending eligibility proceedings could not defeat consideration of the request. Tax also could not be demanded as a condition for issuing declaration forms while the eligibility application remained undecided, in the circumstances described. The relief was confined to sales of goods manufactured in the applicant's unit for which eligibility was sought.

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Issues: (i) Whether the pendency of an application for grant or renewal of an eligibility certificate can prevent issuance of declaration forms. (ii) Whether tax can be demanded as a condition for issuance of declaration forms.

Issue (i): Whether the pendency of an application for grant or renewal of an eligibility certificate can prevent issuance of declaration forms.

Analysis: The Tribunal held that, for issuance of declaration forms, the sales tax authorities could consider only whether the dealer had defaulted in furnishing returns and whether the forms were required bona fide. Rule 27AA of the Bengal Sales Tax Rules, 1941 governed the matter. Even if the application for eligibility certificate was still pending, that pendency could not obstruct issuance of declaration forms in accordance with law.

Conclusion: The pendency of the eligibility certificate proceedings did not bar issuance of declaration forms.

Issue (ii): Whether tax can be demanded as a condition for issuance of declaration forms.

Analysis: The Tribunal directed that, till disposal of the application for grant or renewal of eligibility certificate, the respondents should not demand any tax from the applicant under the Bengal Finance (Sales Tax) Act, 1941 or the West Bengal Sales Tax Act, 1954, for the purpose of issuance of declaration forms. The order was confined to sales of goods manufactured in the applicant's unit for which eligibility was sought.

Conclusion: Tax could not be demanded as a condition for issuance of declaration forms in the circumstances of the case.

Final Conclusion: The applicant was entitled to have its applications for declaration forms considered and disposed of promptly without the pendency of the eligibility certificate application defeating such relief.

Ratio Decidendi: Pendency of an eligibility certificate application does not, by itself, justify withholding declaration forms where the governing rules permit issuance on bona fide requirements and compliance with return-filing obligations.

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