Sales tax declaration forms cannot be denied on disputed manufacturing nexus; factual eligibility is for assessment.

At the stage of issuing form I-B for a sales tax concession, the authority cannot undertake a detailed factual inquiry into whether the goods will be used in manufacturing or whether the concession will ultimately be available. That enquiry is reserved for assessment. The authority may refuse issuance only if there is a clear legal bar to entitlement, not on a pre-emptive view of possible misuse or disputed factual eligibility. Any contravention or misuse can be dealt with during assessment in accordance with law, and the form must be issued where no such legal bar exists.

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Issues: Whether the sales tax authorities could refuse to issue form I-B by examining, at the issuance stage, whether the materials sought to be purchased were connected with manufacturing and whether the petitioner was entitled to the concession.

Analysis: The issue of form I-B was governed by the relevant sales tax notifications and the concession attached to item No. 26-D. The reasoning adopted in the earlier decision applied: the authority issuing the form is not required to undertake a detailed factual inquiry into whether the goods will actually be used in manufacturing. That enquiry belongs to assessment. The authority may refuse issuance only where there is a legal bar to entitlement, but not on a pre-emptive evaluation of factual misuse or the ultimate availability of exemption. Any misuse or contravention can be addressed at the assessment stage.

Conclusion: The refusal to issue form I-B was not sustainable. The petitioner was entitled to issuance of the form, subject to assessment in accordance with law.

Final Conclusion: The writ petition succeeded, and the sales tax authority was directed to issue form I-B forthwith.

Ratio Decidendi: At the stage of issuing statutory declaration forms for a sales tax concession, the authority cannot decide disputed questions of factual eligibility or manufacturing nexus and may refuse issuance only where a clear legal bar exists; such factual scrutiny is reserved for assessment.

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