H form issuance cannot be refused at the threshold merely because export-order proof is disputed later

Rule 9 of the Central Sales Tax (Andhra Pradesh) Rules, 1957 requires declaration forms to be issued at the threshold for transactions covered by the Central Sales Tax Act, 1956. Questions whether the exporter has proved that the export order preceded local purchase, and whether the conditions for exemption under sections 5(3) and 5(4) are satisfied, arise at the assessment stage, not at the stage of supply of H forms. Mere issuance of H forms does not confer exemption under section 5(3), and the assessing authority may still verify entitlement later. Refusal to issue the forms on the ground relied on was therefore unjustified, and issuance of the forms was required.

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Issues: Whether the notified authority could refuse to issue H forms at the stage of supply of forms on the ground that the exporter had not produced proof that the export order preceded the purchase of goods from local dealers.

Analysis: Rule 9 of the Central Sales Tax (Andhra Pradesh) Rules, 1957 requires a registered dealer to obtain declaration forms for use in transactions covered by section 6A(1) and section 8(4) of the Central Sales Tax Act, 1956. The statutory scheme shows that the forms are to be issued at the threshold, while questions relating to proof of export, deemed export, and the burden of establishing entitlement to exemption arise at the assessment stage under the Central Sales Tax Act, 1956. Mere issue of H forms does not itself confer exemption under section 5(3), and the assessing authority may still examine whether the conditions of exemption are satisfied under sections 5(3) and 5(4). The request for forms therefore cannot ordinarily be denied merely because the authority disputes the exporter's proof of prior export orders.

Conclusion: The refusal to issue H forms was not justified on the ground relied on, and the petitioner was entitled to issuance of the forms.

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