https://www.taxtmi.com/caselaws?id=159798 A scheduled bank selling pledged gold jewellery to realise its advances carries on business within the wide definitions of "dealer", "business" and "sale" under the Kerala General Sales Tax Act, 1963. The sale of pledged security is incidental and ancillary to lending on security, not an isolated transaction, so the bank is liable as a dealer. The Banking Regulation Act, 1949 does not exempt such sales, because it permits realisation of security, and a pledgee's sale under section 176 of the Indian Contract Act, 1872 is a lawful enforcement right rather than prohibited trading. The sale transaction is therefore taxable, and the relevant charging provision was upheld as constitutionally valid. en-us Tue, 25 Feb 1997 00:00:00 +0530 Mon, 02 Dec 2013 13:11:31 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=159798 A scheduled bank selling pledged gold jewellery to realise its advances carries on business within the wide definitions of "dealer", "business" and "sale" under the Kerala General Sales Tax Act, 1963. The sale of pledged security is incidental and ancillary to lending on security, not an isolated transaction, so the bank is liable as a dealer. The Banking Regulation Act, 1949 does not exempt such sales, because it permits realisation of security, and a pledgee's sale under section 176 of the Indian Contract Act, 1872 is a lawful enforcement right rather than prohibited trading. The sale transaction is therefore taxable, and the relevant charging provision was upheld as constitutionally valid. Case-Laws VAT and Sales Tax Tue, 25 Feb 1997 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=159798