1. This is a reference made to this Court by the Appellate Tribunal Sales
Tax, Delhi (‘Tribunal’) under Section 49 of the Delhi Sales Tax Act, 1975
(‘DST Act’) requiring it to answer the following questions of law:
2. The background to the reference is set out in the statement of case drawn
up by the Tribunal. The Appellant, M/s. Citi Bank (‘Bank’), is a foreign
company carrying on banking business in India by virtue of license granted
under Section 22 of the Banking Regulation Act, 1949 (‘BR Act’). It also
makes advances for purchase of cars repayable in monthly instalments.
The cars which are financed are hypothecated to the Bank as security. The
possession of the cars continues with the borrowers. Upon default in
repaying the loan instalments, the Bank has the right to repossess the car
and bring it to sale in order to recover the outstanding amount.
Source: Indian Kanoon