The main legal point established in the judgment is that pawnbrokers become 'dealers' under the Karnataka Sales Tax Act, 1957 due to their authority to sell pawned articles, and the circular issued by the Commissioner of Commercial Taxes in Karnataka was found to be valid.

K. A. SWAMI, AG. C. J.

( 1 ) WRIT Appeal Nos. 1710 and 1711 of 1992 are preferred against the order dated July 24, 1992 (Reported as Karnataka Pawn Brokers' Association (Regd.) v. State of Karnataka in [1992] 87 stc 366 (Kant ). , 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 July 24, 1992, passed in W. P. Nos. 25661 to 25665 of 1991.

( 2 ) IN the first batch of writ petitions, 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 October 30, 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 pawnhrokers 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 article 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 October 30, 1991, referred to earlier, issued by the Commissioner of commercial Taxes, Karnataka, Bangalore, have also sought for quashing the notices dated august 5, 1991, October 28, 1991 and August 14, 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.

( 4 ) THE learned single Judge has held that the pawnbrokers become dealers under the Act because they have the right to sell the goods pledged in case of default by the pawners; that this right is exercised by them under section 12 of the Pawn Brokers Act read with rule 20 of the Pawn brokers Rules and therefore, their activities come within the definition of the word "dealer" defined under the Act; hence the provisions of the Act are attracted. The other relief, viz. , the constitutional validity of section 3a of the Act does not appear to have been urged before the learned single Judge, as there is no reference to the same in the order of the learned single Judge. However, before us, the validity of section 3a also has been urged and it will be considered in the course of our judgment. In view of the conclusion arrived at, the learned single Judge has rejected the writ petitions. Hence the petitioners have come up in appeals.

( 5 ) THE petitioners are all licensed pawnbrokers. They carry on business of taking the goods and articles on pawn for loan. It is open to the pawner to redeem the goods and chattels either within the period agreed to between the pawner and the pawnee or if such period is not agreed upon, within one year fifteen d

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