On 3.4.89 the Commercial Tax Officer, Warangal, issued demand numberice on respondent Bank for payment of tax on turnover of auction sale of jewellery held on 19.8.87 under Section 5 read with Explanation IV of Andhra Pradesh General Sales Tax Act, 1957 the 1957 Act, for short .
In this companynection reliance was placed on Section 2 1 e read with Explanation IV of the 1957 Act.
Hence this civil appeal by the State appellants .
Aggrieved by the demand numberice, the respondent Bank filed writ petition before the High Court challenging the legality of the numberice.
In the writ petition the respondent Bank companytended that the provisions of the 1957 Act are number applicable to banking transactions.
By judgment dated 8.6.01 the Division Bench allowed the writ petition quashing the impugned numberices holding that Banks are number amenable to sales tax on sale of gold pledged with the Banks as security for loan.
It received the assent of the Governor on 15.10.96.
It was preceded by an Ordinance.
27 of 1996.
The said Amending Act operated with effect from 1.8.96.
27 of 1996 was an Amending Act.
It was published on 17.10.96 in the Andhra Pradesh Gazette.
Act No.
KAPADIA, J. A short question which arises for determination in this civil appeal filed by the State appellants is whether pledging of ornaments with the Bank against a loan and sale of such goods if the loan is number discharged, would be business within the meaning of Section 2 1 e of the Andhra Pradesh General Sales Tax, 1957 read with Explanation IV thereto.
