STATE OF U.P. & ANOTHER vs HAJI ISMAIL NOOR MOHAMMAD & CO.

The Supreme Court upheld the Allahabad High Court's interpretation of Section 4-B of the U.P. Sales Tax Act, 1948, stating that the requirement for a dealer to hold a recognition certificate does not necessitate contemporaneity with the purchases. The Court clarified that as long as the dealer holds the certificate at the time of assessment, the relief under Section 4-B applies, thus rejecting the Revenue's contention that the certificate must be held at the time of purchase. The Court concluded that the statutory language allows for a recognition certificate obtained after the purchases, affirming the High Court's ruling that the relevant rule was ultra vires Section 4-B.