Declaration forms cannot be withheld to recover assessed dues, but clearance certificates may be refused for unpaid liabilities.

Declaration forms could not be withheld as a coercive measure for recovery of interest already assessed and demanded, because the relevant rule authorised withholding only for undisputed pre-assessment dues; that relief was granted. A sales tax clearance certificate, however, could be refused where existing interest liability remained unpaid and no satisfactory provision for payment was shown, because the statutory condition for issuance was not satisfied. A belated stay petition was also rejected, as no rule prevented an earlier application and practice could not justify the delay.

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Issues: (i) whether declaration forms could be withheld for non-payment of interest already determined and demanded, while appeals/revisions against such determination were pending; (ii) whether a sales tax clearance certificate could be refused when existing interest liability remained unpaid; (iii) whether the belated stay petition was liable to be entertained.

Issue (i): whether declaration forms could be withheld for non-payment of interest already determined and demanded, while appeals/revisions against such determination were pending.

Analysis: The relevant rule governing declaration forms authorised withholding only in cases of default in respect of pre-assessment returns and dues that were undisputed and self-evidently quantifiable. The interest in question had already been determined under the assessment machinery and had thereafter assumed the character of an assessed demand recoverable through the usual recovery process. There was no provision empowering the Commercial Tax Officer to use withholding of declaration forms as a coercive device for recovery of assessed dues.

Conclusion: The withholding of declaration forms on the ground of non-payment of assessed interest was not warranted, and that relief was granted in favour of the assessee.

Issue (ii): whether a sales tax clearance certificate could be refused when existing interest liability remained unpaid.

Analysis: The certificate of clearance was payable only if the applicant had paid or made satisfactory provision for payment of all existing liabilities. As the admitted interest liability remained unpaid and no satisfactory provision had been shown, the statutory condition for issuance of the certificate was not fulfilled.

Conclusion: Refusal of the sales tax clearance certificate was justified, and this relief was declined.

Issue (iii): whether the belated stay petition was liable to be entertained.

Analysis: The stay request was filed long after the appeals and there was no rule preventing an earlier application. The plea based on practice could not justify the delay.

Conclusion: The request to entertain the stay petition was rejected.

Final Conclusion: The application succeeded only to the extent of the declaration forms, while the request for a clearance certificate and the belated stay relief failed.

Ratio Decidendi: Declaration forms cannot be withheld under the relevant sales tax rule for recovery of assessed dues, but statutory clearance certificates may be refused where existing liabilities remain unpaid and no satisfactory provision for payment is made.

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