If, on examination of an application for an operating permit or an industrial use permit, the appropriate TTB officer has reason to believe:
In case of an application to withdraw and use distilled spirits free of tax, the applicant is not authorized by law or regulations issued pursuant thereto to withdraw or use such distilled spirits; or
The applicant (including in the case of a corporation, any officer, Administrator, or principal stockholder and, in the case of a partnership, a partner) is, by reason of the applicant's business experience, financial standing, or trade connections, not likely to maintain operations in compliance with 26 U.S.C. chapter 51 or implementing regulations; or
The applicant has failed to disclose any material information required, or has made any false statement as to any material fact, in connection with his application; or
The premises on which the applicant proposes to conduct the business are not adequate to protect the revenue;
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