Judgment

VENKATARAMIAH J.:- The usual complaint against some of the modern fiscal statutes is that they are unduly long and therefore complex. But here we have an Orissa Act which is very short but clarity is not certainly its virtue.

2. The only point for determination in these appeals by special leave is whether the levy of additional tax under the Orissa Additional Sales Tax Act, 1975 (Orissa Act 24 of 1975) (hereinafter referred to as the Act) as amended by the Orissa Additional Sales Tax (Amendment) Act, 1979 (hereinafter referred to as the Amending Act) is a single point levy or a multi point levy.

3. In order to understand the contentions of the parties it is necessary to give briefly the legislative history of the sales tax law of the State of Orissa and to refer to some of its salient points.

4. The Orissa Sales Tax Act, 1947 (Orissa Act XIV of 1947) (hereinafter referred to as the Principal Act) was enacted and brought into force in the year 1947. It has continued to remain in force even now, although a number of changes have been introduced into it by successive legislative amendments. It is a law intended for levying taxes or the sale or purchase of goods other than newspapers, subject to the provisions of Entry 92-A of List I of the Seventh Schedule to the Constitution. Sections 3-B, 4, 4-A, 5, 6, 7 and 8 of the Principal Act together lay down the extent of the charge. Section 4 (1) of the Principal Act reads :

"4. (1) Subject to the provisions of Sections 3-B, 5, 6, 7 and 8 and with effect from such date as the State Government may, by notification, in the Gazette, appoint, being not earlier than 30 days after the date of the said notification, every dealer whose gross turnover during the year immediately preceding the date of commencement of the Orissa Sales Tax (Amendment) Act, 1981 exceeded Rs. 50,000 shall be liable to pay tax under this Act on sales and purchases effected after the date so notified."

5. This provision imposes the liability to pay tax in accordance with the provisions of the Principal Act on every dealer whose gross turnover during a fiscal year exceeds Rs. 50,000/-. According to Section 2 (dd) of the Principal Act, gross turnover means the total of turnover of sales and turnover of purchases. Turnover of sales is defined in Section 2 (i) of the Principal Act as the aggregate of the amounts of sale prices and tax, if any, received and receivable by a dealer in respect of sale or supply of goods other than those declared under Section 3-B of the Principal Act and turnover of purchases is defined in Section 2 (j) of the Principal Act as the aggregate of the amounts of purchase prices paid and payable by a dealer in respect of the purchase or supply of goods or classes of goods declared under S. 3-B of the Principal Act. Sub-sections (2) to (5) of Section 4 of the Principal Act deal with the point of time at which such dealer would become liable to pay tax, the period during which he would remain liable to pay tax and the time at which he would cease to be liable to pay tax after his annual gross turn-over has failed to exceed Rs. 50,000/-Unless he is a casual dealer as defined in Section 2 (bb) of the Principal Act who is liable to pay tax irrespective of his gross turnover as provided in Section 4-A of the Principal Act, every dealer would become liable to pay tax under the Principal Act only when his gross turnover exceeds Rs. 50,000/-, otherwise not. The expression dealer is defined in Section 2 (c) of the Principal Act as a person who carries on the business of purchasing, selling, supplying or distributing goods, directly or otherwise, whether for cash, or for deferred payment or for commission, remuneration or other valuable consideration and includes other mentioned in that clause. It may be noted that this definition does not specify the extent of the gross turnover of such person as a qualification for being treated as a dealer. Every person who carries on the activities specified in S. 2 (c