JUDGMENT

Kapadia, J.—A short question which arises in these two civil appeals is : whether banks are “dealers” under Section 2(viii) read with Explanation I of the Kerala General Sales Tax Act, 1963.

2. Since common question of law arises in both the civil appeals, they are heard together and disposed of by this common judgment. For the sake of convenience, we may refer to the facts in C.A. No. 6459 of 2003 filed by Federal Bank Ltd. and Ors. v. State of Kerala and Ors.

3. By the Kerala Finance Act, 1998 a clause (g) was inserted in Section 2(viii) by which the definition of the word “dealer” was expanded to cover a bank or a financial institution which, whether in the course of its business or not, sells any gold or other valuables pledged with it to secure any loan, for the realization of such loan amount. After the said amendment, the Department called upon Federal Bank to furnish details of the gold auction during the year 1998-1999 and 1999-2000. This was vide notice dated 31.8.99 issued by the Sales Tax Officer to the assessee. 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 a