FEDERAL BANK LTD. vs STATE OF KERALA .

The Supreme Court held that banks qualify as 'dealers' under Section 2(viii) of the Kerala General Sales Tax Act, 1963, following the amendment introduced by the Kerala Finance Act, 1998. The Court affirmed that the sale of pledged gold by banks constitutes a taxable transaction, thereby upholding the validity of the notices issued by the Sales Tax Department. The Court concluded that the amended definition of 'dealer' is constitutional and does not violate Articles 14 and 19 of the Constitution of India.