89. Manner in which, and conditions subject to which, declaration forms
(1) If the appropriate assessing authority is satisfied that-
(a) the particulars furnished in the application for declaration forms are in order ;
(b) the applicant has made bona fide use of declaration forms issued to him on the previous occasion, and
(c) the applicant has bona fide requirement of declaration forms applied for,
he shall, subject to the conditions prescribed hereinafter in this rule, issue declarations forms to the applicant as required by him :
Provided that if the appropriate assessing authority is of the opinion that the number of declaration forms applied for is not justified, he may issue forms in lesser number as would satisfy the immediate requirement of the applicant.
(2) If the appropriate assessing authority is satisfied that the particulars furnished in the application for declaration forms are not correct or that the applicant has not made bona fide use of declaration forms issued to him on the previous occasion or that than the applicant has no bona fide requirement of declaration forms applied for or that applicant has failed to comply with an order demanding security from him under sub-section (1) or sub-section (2) of section 28, he shall, after giving the applicant a reasonable opportunity of being heard, reject such application by an order in writing.
(3) If the applicant for declaration forms has, at the time of making an application, defaulted in –
(a) furnishing any return under the Act or under the Central Sales Tax Act, 1956 (74 of 1956) together with receipted challan showing payment of tax payable according to such return for the furnishing of which the prescribed date has expired, or
(b) furnishing any receipted challan showing payment of interest payable by him under sub-section (1) of section 31,
the appropriate assessing authority shall, after giving reasonable opportunity to the applicant or his authorised representative of being heard, withhold, by an order in writing, the issue of declaration forms to him until such time as the dealer furnishes return together with the receipted challan showing payment of tax, according to such return, and interest, if any, payable thereon :
Provided that the appropriate assessing authority shall not withhold the issue of declaration forms applied for on the ground of default specified in clause (a) or clause (b), where the applicant satisfies such authority that he will not issue any declaration form applied for to cover any purchase of goods in respect of-
(i) sale,
(ii) use directly in the manufacture of goods for sale,
(iii) use in raising of coal for sale,
(iv) use in generation or distribution of electrical energy for sale, or
(v) use in the packing of goods so purchased or manufactured for sale,
effected and included in the turnover of sales to be shown in the return in default :
Provided further that where the dealer gives an undertaking to the appropriate assessing authority that he will pay up arrears of tax and interest referred to in clause (a) or clause (b) in one lump or installments, such authority may, instead of withholding issue of declaration forms, subject to such terms and conditions as he may think fit, issue declaration forms in such number as may satisfy, in his opinion, the immediate requirement of the dealer.
(4) If, on verification of any return furnished by the applicant under this Act or the Central Sales Tax Act, 1956 (74 of 1956), the appropriate assessing authority is satisfied that the applicant has furnished incorrect statement of his turnover of sales of goods or incorrect particulars of his sales or purchases of goods in such return, he shall, for reasons to be recorded in writing, withhold the issue of declaration forms to the applicant until such time as he furnishes a receipted challan from the Government Treasury or the Reserve Bank of India showing payment of that much amount of tax he has withheld by furnishing such incorrect statement of his turnover of sales of goods or incorrect particulars of his sales or purchases of goods in such return.
(5) Where the appropriate assessing authority does not pass any order rejecting any application for declaration forms under sub-rule (2) or withholding the issue of declaration forms on any application under sub-rule (3) or sub-rule (4), he shall issue the required number of declaration forms or such number of declaration forms as it may, in its opinion, satisfy the immediate requirement of declaration forms of the applicant.
(6) Notwithstanding any order passed, or action taken, by the appropriate assessing authority withholding issue of declaration forms under sub-rule (3) or sub-rule (4) on the application referred to in sub-rule (1) the Commissioner or any officer, not being the appropriate assessing authority, authorised in this behalf by the Commissioner may, for reasons to be recorded in writing, proceed to dispose of the said application for declaration form, upon its transfer or withdrawal to him under rule 90 or direct the assessing authority by an order to issue such number of declaration forms of such categories in such manner and within such time and on fulfilment of such terms and conditions by the applicant as may be specified in the order passed by the Commissioner or any other officer, authorised by the Commissioner.