C form declarations cannot be withheld by merits-based inquiry when statutory registration conditions are satisfied.

A registered dealer is entitled to obtain C form declarations when the goods requested are covered by its registration certificate and the prescribed fee and challan are furnished. At the stage of issuing C forms, the authority's role is limited to verifying these statutory preconditions and it cannot withhold forms by examining the nature, genuineness, or tax-avoidance implications of the underlying transaction. Any such merits-based enquiry belongs to assessment or other appropriate proceedings under the taxing law. The challenge to the show-cause notice was not entertained at that stage, and the dealer was directed to explain the notice before the authority.

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Issues: Whether a registered dealer is entitled to obtain C form declarations when the goods covered by the request are included in its registration certificate, and whether the authority can withhold C forms by examining the nature or genuineness of the underlying transaction at the stage of issuance.

Analysis: Under the Central Sales Tax scheme, the right to obtain C forms is linked to the dealer being a registered dealer, the goods sought being covered by the registration certificate, and payment of the prescribed fee with the requisite challan. The registration provisions and the declaration-form rules do not authorise the issuing authority, at the stage of supply of C forms, to conduct a detailed enquiry into whether the transaction is to evade tax or whether the C form will ultimately be properly used. That kind of enquiry is reserved for assessment or other appropriate proceedings under the taxing enactments. The authority's role at the issuance stage is confined to verifying the statutory preconditions.

Conclusion: The dealer was entitled to receive C forms on compliance with the prescribed conditions, and the authority could not refuse supply by entering into a merits-based enquiry at the stage of issuance. The connected challenge to the show-cause notice was not entertained at that stage and directions were issued to submit an explanation before the authority.

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