TaxTMI Login
AI OCR ✕Convert scanned orders, printed notices, PDFs and images into clean, searchable, editable text within seconds. Starting at 2 Credits/page
Try Now →Just a moment...
AI OCR ✕Convert scanned orders, printed notices, PDFs and images into clean, searchable, editable text within seconds. Starting at 2 Credits/page
Try Now →
Press 'Enter' to add multiple search terms. Rules for Better Search
Use comma for multiple locations.
---------------- For section wise search only -----------------
Accuracy Level ~ 90%
of 
Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of Press 'Enter' after typing page number.
Issues: Whether auction sale of pledged ornaments by banks falls within the course of banking business and is exigible to tax under section 2(viii)(g) read with section 5 of the Kerala General Sales Tax Act, 1963.
Analysis: The definition of "sale" under the Kerala General Sales Tax Act, 1963 is confined to transfers in the course of trade or business for consideration, and the legislative scheme of the Banking Regulation Act, 1949 shows that banks may realise security and deal with non-banking assets in the course of banking business. The prescribed balance-sheet and profit and loss forms also contemplate non-banking assets acquired in satisfaction of claims and income from their sale, indicating that such realisation forms part of banking activity. The amendment inserting clause (g) in section 2(viii) was intended to cover banks selling pledged gold or other valuables even if the transaction was not in the course of business, and enforcement of pledge by sale is not excluded by the definition of "sale" under the State Act.
Conclusion: Auction sale of pledged ornaments by banks is a transaction in the course of banking business and is taxable under section 2(viii)(g) read with section 5 of the Kerala General Sales Tax Act, 1963.
TaxTMI 
TaxTMI 
