State Of Haryana & Ors vs Rubber Reclaim Co.Of India (P) Ltd.&Anr

The High Court of Punjab and Haryana examined the validity of the cancellation of the Eligibility Certificate granted under Section 13-B of the Haryana General Sales Tax Act, 1973, due to alleged violations of conditions set forth in the certificate and Rule 28-A. The Court held that the imposition of tax on inter-State sales or branch transfers was not permissible, thereby quashing the order of assessment dated 31.01.1997. The judgment emphasized that the conditions for exemption must be interpreted in light of the legislative intent to promote industrial growth without imposing undue tax burdens on legitimate business operations.