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2007 (3) TMI 366 - SC - VAT and Sales TaxWhether pledging of ornaments with the bank against a loan and sale of such goods if the loan is not discharged, would be "business" within the meaning of section 2(1)(e) of the Andhra Pradesh General Sales Tax Act, 1957 read with Explanation IV thereto? Held that:- By Explanation IV to section 2(1)(e) of the 1957 Act, banks, financial institutions, etc., are sought to be covered by an in-built expression "deeming provision" in the said Explanation. By the said deeming fiction the meaning of "dealer" is sought to be expanded so as to include banks, financial institutions, L.I.Cs., etc. By the said Explanation a liability is sought to be created for the first time on banks, financial institutions, L.I.Cs., etc. Further, we are concerned with an indirect tax, the incidence of which falls on the borrower/pledgor. The auction sale in the present case is as far back as on August 19, 1987. The transaction has concluded since then. The bank (respondent) is not expected to recover the tax from the pledgor in respect of old auction sales which took place much prior to August 1, 1996.
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