Judgment

K. Venkataswami, J.-The common question that arises for consideration in all these appeals is whether a Pawn-broker is a ‘dealer’ and car­ries on ‘business’ within the meaning of the State General Sales Tax read with the State Pawn-brokers Act and Rules 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 advanced at the bar, certain basic background facts need to be stated.

4. ‘Pawn-broker’ is a person who carries on the business of taking goods and chattels in pawn for a loan. On payment of the money lent with interest and other admissible incidental expenses, the pawn-broker is li