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2015 (12) TMI 1040 - HC - VAT and Sales TaxSale of hypothecated vehicles - disposal of repossessed cars by the bank - whether bank is a dealer - defaulting customers - Held that:- the Petitioner Bank is indeed a ‘dealer’ within the meaning of Section 2 (e) read with Section 2 (c) of DST Act. The sale by the Bank of cars hypothecated to it or offered as security against loans advanced towards financing the purchase of the car is a 'sale' within the meaning of S. 2 (m) of the DST Act. Even if the borrower is the owner in possession of the car, the sale is made by the Bank on the strength of the letter of authorisation executed in its favour by the borrower. With effect from 29th March 1996 the motor vehicle has been subsequently identified as the type of goods which qualify for a single point sale read with Section 5 which would be exempted from any further tax. It is accordingly submitted that even if the Petitioner-bank was held to be a dealer, the sale of motor vehicles by it which has already suffered first point sales tax cannot be subjected to any further sales tax. - In any event, as of date it appears that no demand as such has been raised against the Bank for any period prior to 29th March 1996. Therefore, a question that has not been raised in this appeal is not required to be considered by the Court. Sale of the repossessed cars by the Appellant Bank is incidental or ancillary or in connection with the Appellant’s business - Appeal disposed of.
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