STATE OF PUNJAB & ORS. vs DEWAN'S MODERN BREWERIES LTD.

The Supreme Court held that sales tax can be imposed retrospectively under the Punjab General Sales Tax Act, 1948, affirming that the respondent was deemed to have entered trade with the understanding of tax liability. The Court clarified that even if the respondent believed they were not liable for sales tax, the nature of their transactions allowed for the application of the principles established in Vishnu Agencies. The appeal was dismissed, upholding the imposition of sales tax on the respondent's transactions.