STATE OF U.P. vs M/S. MAHINDRA & MAHINDRA LTD.

The Supreme Court addressed the validity of the exemption notification under Section 4 of the Uttar Pradesh Sales Tax Act, 1948, concerning tractors with Power Take-off Horse Power not exceeding 25. The Court held that the notification must align with the Central Government's specifications regarding engine capacity, specifically stating that exemptions should be based on cubic capacity not exceeding 1800 CC. The Court directed the authorities to amend the notification to eliminate ambiguity and ensure fair treatment among manufacturers, thereby allowing the respondent's claim for exemption from sales tax.