C form issuance requires only threshold statutory conditions; authorities cannot deny forms on pre-emptive misuse enquiries.

At the stage of issuing C forms, the authority may verify only the statutory preconditions: the applicant must be a registered dealer, the goods must fall within the registration certificate, and the prescribed fee must be paid with proof. The authority cannot refuse issuance by conducting a premature enquiry into whether the underlying dealings are local or inter-State sales, or by anticipating possible misuse of the forms. Any challenge to the true character of the transaction or alleged misuse is to be considered later at the assessment or penalty stage. On these facts, supply of the C forms was required and the rejection was unjustified.

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Issues: Whether the petitioner was entitled to obtain C forms at the stage of issuance without an enquiry into whether the underlying transactions were local sales or inter-State sales and whether the forms might later be misused.

Analysis: The entitlement to C forms was held to depend on limited conditions at the threshold stage. The claimant had to be a registered dealer, the goods had to fall within the registration certificate, and the prescribed charges had to be paid with proof of payment. The authority issuing the forms was not required, at that stage, to decide the nature of the underlying transaction or to conduct a premature enquiry into possible misuse. Any objection regarding the true character of the transaction or misuse of the forms could be examined later at the assessment or penal stage under the Act.

Conclusion: The petitioner was entitled to the supply of C forms on compliance with the prescribed conditions, and the rejection of the request was unjustified.

Ratio Decidendi: At the stage of issuing C forms, the authority may verify only the statutory conditions for issuance and cannot refuse the forms on a pre-emptive enquiry into the nature of the transaction or possible future misuse; such questions arise only at the assessment or penalty stage.

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