Turnover tax cannot be used to block declaration forms until the goods' declared status is determined in assessment.

The authorities could not insist on payment of turnover tax as a condition for issuing declaration forms where the assessment had not yet determined whether the goods were declared goods under section 14(iv)(xi) of the Central Sales Tax Act, 1956. The Tribunal noted that no clear finding had been recorded that the goods were not declared goods or were not steel tubes, so the immediate issue was limited to access to declaration forms. It directed issuance of the forms without requiring turnover tax payment until proper assessment proceedings ermine whether turnover tax is payable and the goods' character is established.

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Issues: Whether the authorities could refuse issuance of declaration forms solely on the ground of non-payment of turnover tax, pending a determination of whether the goods sold were declared goods within the meaning of section 14(iv)(xi) of the Central Sales Tax Act, 1956.

Analysis: The dispute centred on the character of the goods and the consequence of that character for turnover tax liability. The Tribunal noted that there was no clear finding at any stage of assessment that the goods were not declared goods or were not steel tubes. It therefore confined the disposal to the immediate question of issuance of declaration forms and left open the substantive question of taxability and the nature of the goods for determination in proper assessment proceedings.

Outcome: The authorities were directed not to insist upon payment of turnover tax as a condition for issuing declaration forms to the applicant, until a finding is recorded in assessment proceedings on whether turnover tax is payable and whether the goods are declared goods. The application was disposed of with this limited direction.

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