9911796707
TMI Blog1995 (1) TMI 318X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 the same was determined and cleared under the Act. Aggrieved by this notice, the petitioner has come up to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 transaction in connection with, or ancillary to such trade, commerce, manufacture, adventure or concern of the petiti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rm '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 pawned articles, value of which is more than Rs. 10 becomes incidental or ancillary to the business of a pawnbroker and as suc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 petitioner-company carrying on any activity by way of buying or selling or bartering of goods, there is an exception in so far ..... X X X X Extracts X X X X X X X X Extracts X X X X
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