State Of U.P. & Ors vs M/S. Mahindra & Mahindra Ltd

The Supreme Court upheld the Allahabad High Court's decision regarding the interpretation of exemption notifications under the Uttar Pradesh Sales Tax Act, 1948. The Court emphasized that the exemption should align with the Central Government's notification, specifically allowing tractors with engine cubic capacity not exceeding 1800 CC to be exempt from sales tax. The Court ruled that the assessment order denying exemption based on horsepower was incorrect, thereby affirming the need for consistency in tax exemption criteria.