JUDGMENT

RANGANATHAN, J.:— M/s. Cardamom Planters Association, Bodinayakanur, (hereinafter referred to as the society) appeals from orders of the Kerala High Court upholding its liability to the levy of surcharge under the Kerala (Surcharge on Taxes) Act, 1957, as amended in 1970.

2. The Kerala General Sales Tax Act, 1963, imposes sales tax on every dealer whose total turnover for any year exceeds a specific sum. The sum prescribed was initially Rs. 10,000 but was gradually stepped up to Rs. 20,000/- in 1971, Rs. 25,000 in 1976, Rs. 35,000 in 1980, Rs. 50,000 in 1981, Rs. 75,000 in 1982 and Rs. 1 lakh in 1984. The expressions dealer, taxable turnover, total turnover and turnover are defined in Section 2 of the Act. The relevant portions of these definitions read as follows :

Section 2(viii)

"Dealer" means any person who carries on the business of buying, selling, supplying or distributing goods, executing works contract, transferring the right to use any goods or supplying by way of or as part of any service, any goods directly or otherwise, whether for cash or for deferred payment, or for commission, remuneration or other valuable consideration and includes;

(b) xx xx xx xx

(c) a commission agent, a broker or a del credere agent or an auctioneer or any other mercantile agent, by whatever name called, who carries on the business of buying, selling, supplying or distributing goods (executing works contract, transferring the right to use any goods or supplying by way of or as part of any service, any goods) on behalf of any principal."

Section 2 (xxv)

"taxable turnover" means the turnover on which a dealer shall be liable to pay tax as determined after making such deductions from his total turnover and in such manner as may be prescribed .....

Section 2(xxvi)

"total turnover" means the aggregate turnover in all goods of a dealer at all places of business in the State, whether or not the whole or any portion of such turnover is liable to tax .....

Section 2(xxvii)

"turnover" means the aggregate amount for which goods are either bought or sold, or supplied or distributed, by a dealer, either directly or through another, on his own account or, on account of others, whether for cash of for deferred payment or other valuable consideration, provided that the proceeds of the sale by a person of agricultural or horticultural produce grown by himself or grown on any land in which he has an interest whether as owner, usufructuary mortgagee, tenant or otherwise, shall be excluded from his turnover.

Explanation (1) "Agricultural or horticultural produce" shall not include

xxx xxx xxx

(ii) tea, coffee, rubber, cardamom or timber.

xxx xxx xxx

3. In 1957, the Kerala Legislature introduced a surcharge on sales tax. S. 3 of the Kerala Surcharge on Taxes Act, 1957 reads as follows:

"The tax payable under the Kerala General Sales Tax Act, 1963, shall, in the case of a dealer whose turnover exceeds Rs. 30,000/- a year, be increased by a surcharge at the rate of five per centum of the tax payable for that year and the provisions of the Kerala General Sales Tax Act, 1963 shall, as the case may be, apply to the levy and collection of the said surcharge.".

Kerala Act 40 of 1976 stepped up the rate of surcharge by amending S. 3(1) to read as follows :

(1) The tax payable under the Kerala General Sales Tax Act, 1963, shall, in the case of a dealer whose turnover

(a) is not less than one lakh rupees but does not exceed ten lakhs rupees in a year, be increased by a surcharge at the rate of five per centum, and

(b) exceeds ten lakhs rupees in a year, be increased by a surcharge at the rate of eight per centum,

of the tax payable for that year and the provisions of the Kerala General Sales Tax Act, 1963, shall apply in relation to the sales surcharge as they apply in relation to the tax payable under the said Act.

4. We may note here two important features of the latter Act. The first is that, unlike sales tax which the dealer is entitled to get reimbursed from the purchaser of t