KARNATAKA PAWN BROKERS ASSOCIATION Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) Writ Appeal Nos. 1710 and 1711 of 1992 are preferred against the order dated 24th July, 1992 passed in W.P.Nos.25704 and 25705 of 1991, whereas, Writ Appeal Nos.1784 to 1788 of 1992 are preferred against the order dated 24th July 1992 passed in W.P.Nos. 25661 to 25665 of 1991.

(2.) In the first batch of Writ Petitions, the petitioners sought for a declaration that Section 3A of the Karnataka Sales Tax Act, 1957 ('the Act' for short) is unconstitutional. They have also sought for quashing the clarificatory Circular No.CLR.Cr. 402 of 1991-92 dated 30th October 1991 issued by the Commissioner of Commercial Taxes produced as Annexure-D in the Writ Petitions. They have also sought for a Writ in the nature of Mandamus or direction forbearing the respondents, their supporters, servants, agents etc., from demanding the registration of licensed pawnbrokers as 'dealers' under the Act and/or assessing/demanding or collecting from them or taking any proceedings for assessment demand or collection of Sales Tax from them in respect of the sale of unredeemed pledge and/or taking any other proceedings under the Act. In addition, they have also sought for a declaration that the auction of pledged articles by pawnbrokers in exercise of their right under Section 12 of the Karnataka Pawn Brokers' Act, 1961 (hereinafter referred to as 'the Pawn Brokers Act') does not constitute 'sale' within the meaning of the expression under Section 2(1)(t) of the Act. Further they have also sought for a declaration that the pawnbrokers registered and licensed under the Pawn Brokers' Act are not 'dealers' within the meaning of the expression under Section 2(1 )(k) of the Act.

(3.) In the other batch of Writ Petitions, the petitioners apart from seeking a Writ of Certiorari to quash the Circular dated 30th October 1991, referred to earlier, issued by the Commissioner of Commercial Taxes, Karnataka, Bangalore, have also sought for quashing the notices dated 5.8.1991, 28.10.1991 and 14.8.1991 marked as Annexures A1 to A5 issued by the Commercial Tax Officer to the petitioners under Sections 10 and 12(1) of the Act. They also sought for a declaration that the pawnbrokers registered and licensed under the Pawn Brokers Act are not 'dealers' within the meaning of the expression under Section 2(1)(k) of the Act and for a further declaration that the auction of the pledged articles by the pawnbrokers in exercise of their right under Section 12 of the Pawn Brokers' Act does not constitute 'sale' within the meaning of that expression under Section 2(1)(t) of the Act.