Declaration form entitlement under sales tax law is limited to inputs used directly for taxable goods, not non-taxable output.

Concessional purchase under the West Bengal Sales Tax Act, 1994 is confined to goods specified in the registration certificate and used directly in the manufacture of taxable goods for sale in West Bengal. Declaration forms in forms 10 and 12 are intended to enforce that statutory condition, so entitlement does not extend to the portion of chemicals and dyes used for producing exercise books treated as non-taxable goods. The earlier Full Bench direction was applied on that basis, and the distinction between chemicals, dyes and raw materials did not change the governing test. The rejection of declaration forms for the non-taxable portion was therefore valid.

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Issues: Whether the petitioner was entitled to declaration forms in respect of chemicals and dyes purchased for use in manufacture of paper, where a part of the output was converted into exercise books and sold as non-taxable goods, and whether the order rejecting the request for declaration forms was illegal.

Analysis: Under section 43 of the West Bengal Sales Tax Act, 1994, read with section 17(2)(b)(ii) and rules 52 and 74 of the West Bengal Sales Tax Rules, 1995, concessional purchase is available only for goods specified in the registration certificate and intended for direct use in the manufacture of taxable goods for sale in West Bengal. The declaration forms in forms 10 and 12 are designed to secure that statutory condition. The earlier Full Bench order between the parties had already directed issue of declaration forms only to the extent goods were used for manufacture of taxable goods, excluding the portion attributable to exercise books. The attempt to distinguish chemicals and dyes from raw materials did not alter the statutory position, because the relevant test remained whether the goods were used for taxable goods or for non-taxable exercise books. The authority was therefore justified in restricting the concession to the taxable portion and in refusing forms for the balance used in non-taxable production.

Conclusion: The petitioner was not entitled to declaration forms for the portion of chemicals and dyes attributable to manufacture of exercise books, and the rejection order was valid.

Ratio Decidendi: Concessional purchase and declaration-form entitlement under the West Bengal Sales Tax Act, 1994 are confined to goods intended for and used directly in the manufacture of taxable goods for sale, and cannot extend to the portion used in making non-taxable goods.

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