Single-point sales tax levy turns on the earliest taxable dealer in the chain, not merely the first post-commencement sale.

Under section 5(3)(a) of the Mysore Sales Tax Act, the phrase "the first or the earliest of successive dealers in the State who is liable to tax under this section" is not limited to the first dealer after commencement of the Act. The charging scheme is a single-point levy, and liability depends on the earliest dealer in the sales chain who is actually taxable under section 5, not on the first post-commencement sale. The transition and saving provisions support separate treatment of pre-Act and post-Act turnovers, so a later sale cannot be treated as the first taxable sale merely because it occurs after commencement.

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Issues: Whether, under section 5(3)(a) of the Mysore Sales Tax Act, 1957, the expression "the first or the earliest of successive dealers in the State who is liable to tax under this section" refers only to the first or earliest dealer after the Act commenced, or includes an earlier dealer in the same chain of sales.

Analysis: Section 5(3)(a) provides for a single-point levy on specified goods, while section 5(1) and section 5(5) show that liability depends on the dealer being taxable under section 5 and not exempt by reason of turnover. The wording of section 5(3)(a) contains no express limitation tying the first or earliest dealer to the date of commencement of the Act. Where sales of the specified goods had already occurred before the Act commenced, and an earlier dealer in the series was nevertheless liable under section 5 because of post-Act transactions, the later post-Act sale could not be treated as the first taxable sale merely because it was the first sale after commencement. The saving and transition provisions in sections 40 and 43 support the view that pre-Act and post-Act turnovers are treated according to their respective legal regimes, and any ambiguity in the charging provision must not be resolved to the Revenue's advantage.

Conclusion: The expression in section 5(3)(a) is not confined to the first or earliest dealer after the Act came into force. If an earlier dealer in the series was already liable to tax under section 5, no tax is leviable on the later post-Act sale on the footing that it is the first taxable sale.

Final Conclusion: The reference was answered by holding that the post-commencement sale was not taxable in the stated circumstances, and the earlier contrary view was overruled.

Ratio Decidendi: For a single-point levy under section 5(3)(a), the taxable point is determined by the first or earliest dealer in the series who is liable under section 5, and the provision is not restricted to sales occurring first only after commencement of the Act.

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