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2015 (8) TMI 1239 - HC - VAT and Sales TaxBank liability to pay VAT – Whether petitioner-bank was covered by definition of “dealer” under section 2(12) of Orissa Value Added Tax Act, 2004 and was liable to value added tax on sale of pledged assets effected by it for recovery of loan – Held that:- As observed by Supreme court in Federal Bank Limited [2007 (3) TMI 364 - SUPREME COURT OF INDIA] when bank sells pledged goods in exercise of its statutory power, such sales were required to be indicated in its balance sheet and profit and loss account as per Act – However, ratio of Federal Bank was not confined to specific inclusion of bank in definition “dealer” but on consideration of nature of banking business – In OVAT Act, “dealer” means any person who carries on business of buying and selling – Apex court clearly held that sale of goods to recover loan was part of banking business – We do not find any reason to exclude bank from definition of “dealer” under OVAT even in absence of express inclusion of bank in said definition – Therefore, bank was not dealer liable to pay value added tax on transaction of sale of goods in auction conducted by it to recover loan dues, was not correct –Petition disposed of – Decided against Assesse.
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