STATE OF PUNJAB vs M/S.PUNJAB FIBRES LTD.

The Supreme Court held that the Punjab General Sales Tax Act, 1948, specifically Section 5, governs the eligibility for tax benefits under the Notification dated 23rd November 1979. The Court found that the High Court erred in entertaining the Writ Petition as the Respondents had not established the mill prior to the stipulated date and had violated the conditions of the Notification by transferring yarn outside the State. Consequently, the Court ruled that the Respondents were not entitled to the benefits claimed, thereby reversing the High Court's decision.