Home Case Index All Cases VAT and Sales Tax VAT and Sales Tax + SC VAT and Sales Tax - 2007 (3) TMI SC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2007 (3) TMI 364 - SC - VAT and Sales TaxWhether banks are "dealers" under section 2(viii) read with Explanation I of the Kerala General Sales Tax Act, 1963? Held that:- Appeal dismissed. Even if the sale of pledged ornaments takes place outside the banking business, the 1963 Act would cover even such transactions. Therefore, once such transactions fall under section 2(viii)(g) of the 1963 Act, banks become "dealers" and they are liable to pay sales tax under the said 1963 Act. It is true that the definition of the word "sale" under section 2(xxi) of the 1963 Act does not include mortgage, hypothecation, charge or pledge, however, the important point to be noted is that the definition of the word "sale" under the 1963 Act is not the same as under section 4 of the Sale of Goods Act, 1930. The definition of the word "sale" in section 2(xxi) in the 1963 Act is very similar to section 2(g) of the Central Sales Tax Act, 1956 which is held to be having a very wide meaning as compared to the definition of the word "sale" in section 4 of the Sale of Goods Act, 1930. Further, when charge or pledge is enforced that enforcement is by way of sale of the pledged or hypothecated goods; that sale is for consideration and, therefore, it falls within the ambit of section 2(xxi) of the 1963 Act. In the circumstances, there is no infirmity in the impugned judgments of the division Bench of the Kerala High Court.
|