KARNATAKA PAWNBROKERS ASSOCIATION Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) The common question that arises for consideration in all these appeals is whether a Pawnbroker is a dealer and carries on business within the meaning of the State General Sales Tax Act read with the State Pawnbrokers Act and Ruels when he causes the sales of unredeemed articles/goods, occasioned by the default of the Pawner through (statutory) Auctioneer.

(2.) The above question has to be considered with reference to the provisions of the Tamil Nadu General Sales Tax Act read with the Tamil Nadu Pawnbrokers Act and Rules as well as the Karnataka Sales Tax Act read with the Karnataka Pawnbrokers Act and Rules. We may point out that the relevant provisions of both the Sales Tax Acts and the Pawnbrokers Act are substantially the same and for the sake of convenience the provisions mentioned hereinafter are the provisions of the Karnataka Acts.

(3.) Before going into the submissions advnaced at the bar, certain basic background facts need to be stated.