https://www.taxtmi.com/caselaws?id=156581 A pawn broker's sale of unredeemed pledged goods by auction was treated as business activity under the Karnataka Sales Tax Act, 1957 because the sale was incidental and ancillary to the main pawn-broking business. Reading the pawnee's statutory power of sale under the Indian Contract Act, 1872 together with the Karnataka Pawn Brokers Act, 1961 and its rules, the court noted that the broker does not become owner of the goods merely by pledge, yet the statutory sale still forms part of the business for tax purposes. The broker was therefore regarded as a dealer and liable to sales tax when the turnover threshold was met. en-us Fri, 24 Jul 1992 00:00:00 +0530 Sat, 21 Sep 2013 17:48:07 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=156581 A pawn broker's sale of unredeemed pledged goods by auction was treated as business activity under the Karnataka Sales Tax Act, 1957 because the sale was incidental and ancillary to the main pawn-broking business. Reading the pawnee's statutory power of sale under the Indian Contract Act, 1872 together with the Karnataka Pawn Brokers Act, 1961 and its rules, the court noted that the broker does not become owner of the goods merely by pledge, yet the statutory sale still forms part of the business for tax purposes. The broker was therefore regarded as a dealer and liable to sales tax when the turnover threshold was met. Case-Laws VAT and Sales Tax Fri, 24 Jul 1992 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=156581