STATE OF PUNJAB vs M/S.NESTLE INDIA LTD.&ANR

The Supreme Court upheld the High Court's decision quashing the demands for purchase tax on milk for the period 1.4.96 to 4.6.97, citing Section 4(B) of the Punjab General Sales Tax Act, 1948. The Court found that the State Government had effectively abolished the purchase tax through public announcements and budget speeches, creating an estoppel against the State's claims. The Court held that the respondents were justified in not paying the tax based on the government's representations.