Withholding of statutory form requires prior tax determination and unpaid demand; absent default, refusal to issue the form is unjustified.

Form XXVIIIB could not be withheld under rule 45(b) unless the statutory contingencies were first satisfied, namely default in filing returns with payment of admitted tax or failure to pay a duly demanded tax liability within the prescribed time. As no prior determination had established tax payable on the sockets and no unpaid demand existed, the legal basis for stopping issuance of the form was absent. The withholding was therefore unjustified and the impugned orders were liable to be quashed, while the underlying sales tax liability on sockets was left open for determination by the competent authority in accordance with law.

---

---

Issues: Whether form XXVIIIB could be withheld under rule 45(b) of the Bihar Sales Tax Rules in the absence of a prior determination of tax liability and an unpaid demand.

Analysis: The entitlement to withhold form XXVIIIB depended on the existence of one of the contingencies specified in rule 45(b), namely, default in filing returns with payment of admitted tax, or failure to pay tax demanded under section 25(2) of the Act within the prescribed or extended time. On the facts, no determination had been made by the sales tax authorities that tax was payable on the sockets, and no unpaid demand against the petitioner had been established. The petitioner had been filing returns and paying tax according to those returns. In those circumstances, the statutory basis for stopping issuance of the form was absent.

Conclusion: The withholding of form XXVIIIB was unjustified and the impugned orders were liable to be quashed, with a direction to issue the form to the petitioner.

Final Conclusion: Relief was granted to the petitioner, while the question of liability to pay sales tax on sockets was left open for determination by the competent authorities in accordance with law.

Ratio Decidendi: A statutory form cannot be withheld under rule 45(b) unless the specific statutory contingencies for default or non-payment after a valid tax determination are first satisfied.

---