M/S. MATHRA PRASHAD AND SONS. vs STATE OF PUNJAB

The Supreme Court interpreted Section 6(1) of the East Punjab General Sales Tax Act, 1948, determining that exemptions for sales tax apply for the entire financial year, regardless of when the notification is issued during that year. The Court held that the tax is a yearly tax, and exemptions must be uniformly applicable to avoid unequal treatment among dealers based on their payment schedules. The majority opinion concluded that unless specified otherwise, exemptions are effective throughout the financial year, while the dissenting opinion argued that exemptions should take effect only from the notification date.