BHAWANI COTTON MILLS LTD. vs STATE OF PUNJAB & ANR.

The Supreme Court ruled that the assessment orders for the years 1960-61 and 1961-62 could not be upheld due to the absence of a fresh Notification after the amendment of the definition of 'purchase' in the Punjab General Sales Tax Act, 1948. The Court held that the levy of purchase tax was inconsistent with the amended definition and could not be sustained under the 1958 Notification. Consequently, the appellant, a cotton ginning factory, was not liable to pay the purchase tax for the assessment years in question.