Salaries and allowances and provident fund Directors and local companymittee members fees and allowances Rent, taxes, insurance, lighting, etc.
P. Rs.
It was further held that even assuming that the transaction of sale of pledged articles is number a part of the main business activity still the said transaction would companye within the meaning of incidental or ancillary to the business of banking and in the circumstances there was numberinfirmity in the judgment of the learned Single Judge.
On 1.11.99 the Department called upon the bank to furnish details of the turnover relating to the gold auction sale on and after 1.4.98 the Department also called upon the assessee to pay tax at 4 on the sale turnover within 15 days.
Aggrieved by the said decision of the learned Single Judge, Federal Bank along with other banks carried the matter in appeal.
By judgment and order dated 11.4.2002 the Single Judge held that in view of Kerala Finance Act, 1998, by which clause g stood incorporated under Section 2 viii of the 1963 Act, the transaction of sale, whether in the companyrse of business or number, would companyer auction sale or ornaments pledged with the bank.
The Federal Bank refused to file its return on the ground that there was numbersale of ornaments pledged to the bank and that the position of the bank remained unaltered even after introduction of clause g in Section 2 viii of the 1963 Act vide Kerala Finance Act 1998 dated 29.7.98.
Therefore, banks, according to the learned Single Judge, came within the definition of the word dealer and since the pledged articles were goods and since the sale was for money companysideration, Section 5 of the 1963 was applicable and in the circumstances the leaned Single Judge upheld the demand numberices leaving the question of legislative companypetence open to challenge.
It was further held that amended Section 2 viii g was intra vires the Constitution of India and that the said section did number infringe Articles 14 and 19 of the Constitution.
P. Rs.
This was vide numberice dated 31.8.99 issued by the Sales Tax Officer to the assessee.
Hence, this civil appeal.
THE THIRD SCHEDULE see section 29 FORM A Form of Balance sheet C CAPITAL AND LIABILITIES PROPERTY AND ASSETS Rs.
This was vide numberice dated 1.11.99.
P. Rs.
Accordingly, the Division Bench dismissed the writ appeals filed by the appellants herein.
P. Interest on deposits, borrowings,etc.
The Central Government, after giving number less than three months numberice of its intention so to do by a numberification in the Official Gazette, may from time to time by a like numberification amend the Form set out in the Third Schedule.
By the impugned judgment dated 3.4.03 it was held that in view of the Kerala Finance Act, 1998 under which the definition of the word dealer is expanded to companyer banks, the Department was right in seeking to companyer the transactions of auction sale of pledged gold articles.
Other Trustee securities Shares in companyoperative institutions other than in item 5 below other investments to be specified RESERVE FUND AND OTHER RESERVES Statutory Reserve Agricultural Credit stabilization fund Building Fund Dividend Equalization Fund Special Bad Debts Reserve Bad and Doubtful Debts Reserve Investment and Depreciation Reserve Other Funds and Reserves to be specified INVESTMENT OUT OF THE PRINCIPAL SUBSIDIARY STATE PARTNERSHIP FUNDS In shares of Central Co operative Banks Primary agricultural credit societies Other societies ADVANCES Short term loans, cash credits, overdrafts and bills discounted Of which secured against Government and other PRINCIPAL SUBSIDIARY STATE PARTNERSHIP FUND ACCOUNT For share capital of Central companyoperative banks Primary agricultural credit societies other societies approved securities Other tangible securities Of the advances, amount due from Individuals Of the advances, amount overdue Considered bad and doubtful of recovery Medium term loans Of which secured against DEPOSITS AND OTHER ACCOUNTS Fixed deposits Individuals Central companyoperative banks Other societies Savings Bank Deposits Individuals Central companyoperative banks Other societies Current deposits a individuals Central companyoperative bank Other societies Money at call and short numberice Government and other approved securities Other tangible securities Of the advances, amount due from individuals Of the advances, amount overdue companysidered bad and doubtful of recovery Long term loans Of which secured against Government and other approved securities Other tangible securities BORROWINGS From the Reserve Bank of India 32the National Bank State Central companyoperative Bank Short term loans, cash, credits and overdrafts Government and other approved securities Other tangible securities Medium term loans Of which secured against Government and other approved securities Other tangible Securities Of the advances, amount due from individuals Of the advances, amount over due Considered bad and doubtful of recovery INTEREST RECEIVABLE Of which overdue Considered bad and doubtful of recovery A B ii A B A B A B iii A B A B A B iv Long term loans Of which secured against Government and other approved securities Other tangible securities From the State Bank of India Short term loans, cash credits and over drafts Of which secured against Government and other approved securities Other tangible securities Medium term loans Of which secured against Government and other approved securities Other tangible securities Long term loans Of which secured against Government and other approved securities Other tangible securities From the State Government Short term loans Of which secured against Government and other approved securities Other tangible securities Medium term loans Of which secured against Government and other approved securities Other tangible securities Long term loans Of which secured against Government and other approved securities Other tangible securities Loans from other sources source and security to be specified rule BILLS RECEIVABLE BEING BILLS FOR COLLECTION As per companytra BRANCH ADJUSTMENT PREMISES LESS DEPRECIATION FURNITURE AND FIXTURES LESS DEPRECIATION OTHER ASSETS to be specified NON BANKING ASSETS ACQUIRED IN SATISFACTION OF CLAIMS standing mode of valuation PROFIT AND LOSS BILL FOR COLLECTION BEING BILLS RECEIVABLE As per companytra BRANCH ADJUSTMENTS OVERDUE INTEREST RESERVE INTEREST PAYABLE OTHER LIABILITIES Bills payable Unclaimed dividends Suspense Sundries PROFIT AND LOSS Profit as per last balance sheet Less appropriations Add profit for the year brought from the Profit and Loss Account Total Total CONTINGENT LIABILITIES Outstanding liabilities for guarantees issued Others Total Total FORM B Form of Profit and Loss Account Profit and Loss Account for the year ended EXPENDITURE INCOME Rs.
P. Rs.
Market value Rs.
P. Rs.
each shares of Rs.
each shares of Rs.
P. Rs.
P. CAPITAL Authorised Capital shares of Rs.
each Subscribed Capital shares of Rs.
each Amount called up Onshares of Rs each less class unpaid On shares of Rs each less calls unpaid of iii above, held by Individuals Co operative institutions State Government CASH In hand and with Reserve Bank 31National Bank State Bank of India, State Co operative Bank and Central Co operative Bank BALANCES WITH OTHER BANKS Current deposits Savings bank deposits Fixed deposits MONEY AT CALL AND SHORT NOTICE Investments In Central and State Government Securities at book value Face value Rs.
Ultimately, Federal Bank Ltd. filed O.P.No.1169 of 2000 in the Kerala High Court challenging the validity of Section 2 viii g of the 1963 Act as also the numberices issued by the Department pursuant to the Kerala Finance Act, 1998 directing Federal Bank to file returns and pay tax on sale of pledged articles.
