STATE OF PUNJAB vs SHITAL FIBRES LTD.

The Supreme Court held that the issue of whether blankets fall under the category of 'textile fabrics' exempt from tax under Section 51 of the Punjab Value Added Tax Act, 2005 requires adjudication by the Assessing Officer. The Court found that the Punjab and Haryana High Court erred in quashing the show cause notice at the threshold, and thus set aside the impugned judgment, remitting the matter for determination in accordance with law. The Court did not express any opinion on the merits of the case, leaving contentions open for consideration.