TaxTMI 
TaxTMI 
1995 (1) TMI 318
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....k in the event of a default in payment by the borrowing company. The borrower appears to have committed such a default, with the result that in exercise of the powers available to it under the hypothecation agreement in question, the petitionerbank sold by auction the goods hypothecated with it. While these goods were yet to be moved outside the State of Karnataka by the purchaser, the Commercial Tax Officer (Intelligence), Check-Post, Mangalore and the Deputy Commissioner of Commercial Taxes, Mangalore Division, Mangalore, issued notices annexures B, C and D to the writ petition dated April 11, 1989 and July 21, 1989, calling upon the petitioner not to deliver the goods sold by it to the purchasers till such time the sales tax liability on....
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....rn Railway, Calcutta [1989] 74 STC 5; AIR 1989 SC 1468. This Court held that selling of goods by the appellant-insurance company was incidental or ancillary to the main business of insurance carried on by it and therefore the appellant-company was a "dealer" for the purpose of the Act, which expression included even a casual trader carrying on a business activity. While holding so this Court dissented from the decisions of the Allahabad and Madras High Courts cited before it and observed that the said decisions in so far as the same ran counter to the view taken by the apex Court, were not binding. Relying upon the definition of the term "business" as given by section 2(1)(f-2) of the Karnataka Sales Tax Act, this Court held that any transa....
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....cidental or ancillary to the business also constitutes business. This is also clear from the definition of the term 'business' contained in section 2(1)(f-2) of the Act which reads thus: 'business' includes (i) any trade, commerce or manufacture or any adventure or concern in the nature of trade, commerce or manufacture, whether or not such trade, commerce, manufacture, adventure or concern is carried on with a motive to make gain or profit and whether or not any profit accrues from such trade, commerce, manufacture, adventure or concern; and (ii) any transaction in connection with, or incidental or ancillary to such trade, commerce, manufacture, adventure or concern. Therefore, it is clear that the sale of pledged or pawn....
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....he buying or selling or bartering of goods, except in connection with the realisation of security given to or held by it, or engage in any trade, or buy, sell or barter goods for others otherwise than in connection with bills of exchange received for collection or negotiation or with such of its business as is referred to in clause (i) of sub-section (1) of section 6: Provided that this section shall not apply to any such business as aforesaid which was in the course of being transacted on the commencement of this Act. So, however, that the said business shall be completed before the expiry of one year from such commencement." A plain reading of the above provision makes it clear that while there is a general prohibition against the p....