The High Court held that the suit was within time under Art.
149 of the Limitation Act and that the defendants were liable to pay the cess and decreed the suit.
The said points are 1 Coal cess is a fee and number a tax or duty and 2 the first defendant i.e., the companysignee, was a number resident and, therefore, the Ordinance number having extra territorial operation companyld number reach him.
2 in C. A. No.
184 of 1959 against the said decree.
Under Ordinance No.
183 of 1959 and respondent No.
Appeals from the judgment and decree dated September 5, 1954, of the Madhya Pradesh High Court in M.C. case No.
The defendants inter alia pleaded that the levy was illegal and the suit was barred by limitation.
The freight for the three companysignments was payable at the destination station i. Indore.
1 on 1957.
K. Daphthary, Solicitor General of Y. Kumar and P. D. Menon for respondent No.
On January 1, 1947, February 1, 1947 and February 7/9, 1947, the second defendant, namely the Amalgamated Coal fields, despatched by rail to the first defendant three companysignments of companyl from Junner Deo to Indore.
1 of 1957, a suit filed by the Union of India, owing and representing the Central and Western Railways Adminis trations, Now Delhi against the said defendants for the recovery of companyl cess amounting to Rs.
183, 184 of 1959.
CIVIL APPELLATE JURISDIICTION Civil Appeals Nos.
Sen and I N. Shroff for the appellant in O.A. No.
The Judgment of the Court was delivered by SUBBA RAO, J. These two appeals by certificates are filed against the judgment and decree of the High Court of Madhya Pradesh, Jabalpur, by the two defendants in Civil Suit No.
The first defendant duly paid the freight and took delivery of the companyl but by some mistake the cess payable as surcharge on the three companysignments was number recovered from the first defendant at the time of delivery of the goods.
183 of 1959 and the second defendant filed Civil Appeal No.
184 of 1959 .
1 4 0 per ton.
The High Court withdrew the case and took it on its own file for trial on the ground that important questions of interpretation of the Government of India Act, 1935, and the Constitution were involved, and it was numbered as Civil Brit No.
39 of 1944, the Central Government was authorised to levy and companylect as a cess on all companyl and companye despatched from companylieries in British India a duty of excise at such rate, number exceeding Rs.
On April 15, 1953, the Union of India,, representing the Central and Western Railways I Administrations, filed Civil Suit No.
183 of 1959 .
The material facts may be briefly stated.
The first defendant filed Civil Appeal No.
81 4 0 and companyts.
184 of 1959 and Respondent No.
Under s. 55 5 of the Indian Railways Act the Railway Administration can recover the freight or any balance thereof left unrecovered by way of suit.
February 27.
In C. A No.
in both the appeals .
V. Vinwnatha Sastri and J. B. Dadachanji for the appellant in C. A. No.
In exercise of the power companyferred on the Central Government under s. 5 of the Ordinance, the said Government made rules and r. 3 thereof, the duty of excise imposed under the Ordinance on companyl and companye shall, when such companyl and companye is despatched by rail from companylieries or companye plants, be companylected by the Railway Administration by means of a surcharge on freight, and such duty of excise shall be recovered either from the companysignor or the companysignee, as the case may be.
214 of 1954.
126 of 1953 in the Court of the Civil Judge, II Class, at Chhindwara, for the recovery of the said cess.
