GOVT. A.P. vs CORPORATION BANK

The Supreme Court addressed whether the auction sale of pledged ornaments by a bank constitutes 'business' under Section 2(1)(e) of the Andhra Pradesh General Sales Tax Act, 1957. The Court held that the retrospective application of Explanation IV, which expanded the definition of 'dealer' to include banks, does not apply to transactions prior to its enactment. Consequently, the Court upheld the High Court's decision that banks are not liable for sales tax on such transactions, affirming the quashing of the demand notice issued by the Commercial Tax Officer.