STATE OF ORISSA Vs. K DANDAPANI SUBUDHI

JUDGEMENT

(1.) THIS is a reference under section 24 (1) of the Orissa Sales Tax Act of 1947 (hereinafter called "the Act') at the instance of the revenue and the following questions has been referred for our opinion :

(2.) THE assessee was an unregistered dealer carrying on business in grocery and stationery articles as also controlled food articles. He started his business with effect from 4th July, 1968, on controlled commodities, and grocery and stationery articles were added to the business with effect from 1st June, 1969. The assessment period is 1969-70. The assessing officer examined his books of account, and taking into consideration certain defects found, determined the liability under the Act with effect from 1st June, 1969, as by then the gross turnover exceeded Rs. 10,000. Assessment was made under section 12 (5) of the Act and gross and taxable turnovers were determined at Rs. 48,396. 51 and Rs. 30,249. 13 respectively. The assessee preferred an appeal before the Assistant Commissioner challenging the assessment. The rejection of the accounts was upheld. One of the contentions of the assessee was that the amending act of 1968 came into force with effect from 1st July, 1969, by which non-taxable limits was raised from Rs. 10,000 to Rs. 25,000 of the gross turnover. It was contended that as the gross turnover of the assessee did not exceed Rs. 25,000 on 1st July, 1969, his liability to pay tax ceased with effect from the date the amending Act came into force. This contention was ultimately upheld by the Tribunal.

(3.) IT is next contended that if interpretation given by us is sustained, it would amount to discrimination in the case of a continuing dealer prior to the Act and a dealer who would get into the business after the amending Act of 1968. We do not think that there is any scope for the contention of discrimination. A continuing dealer and a new dealer do not belong to the same class, and if legislation is made making the continuing dealer subject to one type of dealer (sic) and the new dealer would be subject to advantages, it would not amount to discrimination within the meaning of article 14 of Constitution. In several taxing statutes, benefits are given to new entrants and in no case, has it been held that it amounts to discrimination. Under the Income Tax Act of 1961, several reliefs have been extended to particular types of business assessees and unless eqully placed assessees are separately treated, the allegation of discrimination is not sustainable. Neither of the contentions of Mr. Agarwala for the assessee impresses us. We would accordingly decline to accept his submissions and choose to follow the reported decision of this court in State of Orissa v. Harekrushna Sahu [1982] 50 STC 180 (App); (1976) 1 CWR 68. Following it, our answer to the question would be in favour of the revenue against the assessee, viz. , that the liability of the assessee would continue for the period between 1st July, 1969, and 31st October, 1969. There would be no order for costs.