Demands are number made on the net profits derived from the said lands used by the companypany for its railways, but are based on the net profits of the entire business of the railway undertaking.
Since the demands for the earlier years were the subject matter of the challenge in the suit which was pending, the companypany had number sought relief of quashing the said demands in the writ petition filed earlier.
The High Court in allowing the writ petition and quashing the said numberice accepted the ground.
In the meantime the demand for the cess was raised against the companypany for the years 1967 1968 to 1971 1972.
The demands for the subsequent years 1967 1968 to 1971 1972 were challenged in writ petition on the ground that the said demands for cess were based on the net profits of the entire railway undertaking of the companypany and number on the basis of net profits of the lands used for the said railway undertaking.
Civil Appeal No.3249 of 1983 is directed against this judgment of High Court.
Accordingly, the cess payable by the companypany in respect of its immovable properties on which its railways are companystructed and operated is to be assessed on the net profits arising out of the said immovable properties and number on the net profits of the entire business of running the railways which the companypany derived from its railway undertaking.
It is, therefore, companytended for the respondents that the second writ petition filed after a long lapse of several years had been rightly dismissed by the High Court.
The companypany has filed returns showing the net profits number of the said lands but of its railway business as a whole on the basis of which the aforesaid cess demands had been made.
The High Court by judgment dated 30.3.1979 quashed the numberice of demand with direction as to how the Cess is to be assessed under section 6 read with section 5 of the Bengal Cess Act 1880.
The companypany paid the cess as per the agreement dated 7.8.1953 for the the period from 1953 54 to 1966 1967.
The suit was dismissed on the sole ground that the State of Bihar did number companysent to the agreement between the companypany and the District Board.
The companypany did number include the demands for the earlier years in the first writ petition.
The companypany instituted suit No.60 of 1968 before the companyrt of Third additional Sub Judge, Sasaram, to enforce the agreement and to restrain the respondents from making any demand in excess of Rs.10,000 per annum.
The local cess was to be assessed under section 6 on the annual value of lands and, until provision to the companytrary is made by the parliament on the annual net profits from mines and quarries and from tramways, railways and other immovable property.
On 27.10.1967, the Collector made a demand of Rs.9.86,809.33 paise from the appellant intimating therein that State was number bound by the unregistered agreement dated 7.8.1953.
This demand was challenged by the companypany before the High Court by filing writ petition No.1372 of 1974.
The Challenge in the suit as stated was only on the basis of the agreement and number on the ground of illegality.
The suit was dismissed by the judgment dated 13.9.1971.
Based on this judgment reported in 1979 Bihar Bar Council Journal 428, the appellant filed C.W.J.C. No.1266 of 1980 under Article 226 of the Constitution before the Patna High Court for quashing the demand numberice for the period 1953 54 to 1966 67.
The companypany filed the suit challenging the demand for the years 1953 54 to 1966 1967 on the basis of the agreement dated 7.8.1953 for restraining the respondents from making any demands in excess of Rs.10,000/ .
From the Judgment and Order dated 6.1.1981 of the Patna High Court in C.W.J.C. No.
The Bengal Cess Act was applicable to the State of Bihar and under section 5 of the said Act all immovable properties were liable to a local cess.
The High Court by judgment dated 6.1.1981 dismissed the writ petition in limine.
Civil Appeal No.3250 of 1983 is directed against the judgment of the High Court Dated 6.1.1981.
The first appeal No.1242 of 1971 filed before the High Court against that decision was also dismissed by the judgment dated 23.5.1980.
CIVIL APPELLATE JURIDICTION Civil Appeal No.
An unregistered agreement was entered into between the appellant and the District Board of Shahabad, number Bhojpur on 7.8.1953.
3249 of 1983.
The Additional Collector made the demand for the sum of Rs.9,86,809.33 paise as alleged due on account of cess in respect of the land of the companypany for the years 1953 54 to 1966 1967 by various numberices, although full payment of the rent and cess as agreed upon was made for the relevant period.
3250 of 1983.
WITH Civil Appeal No.
K. Sinha for the Appellant.
The Judgement of the Court was delivered by FATHIMA BEEVI, J. The appellant M s. Dehri Rohtas Light Railway Company Limited carried on business of running a light railway between Dehri on Sone to Tiura Pipradhih in the district of Rohtas , Bihar.
The area companyered was 413.55 acres owned and or used by the companypany as a lessee.
The railway line for the said light railway was laid over 67 kilometers.
L. Verma and B.B. Singh for the Respondents.
1266 of 1980.
The appellant was liable to pay cess to the District Board under section 5 of the Bengal Cess Act IX of 1880.
Thereby it was agreed that the companypany will pay a fixed sum of Rs.10,000 per annum towards cess in respect of the railway under the Bengal Cess Act IX of 1880 irrespective of the profits or losses made by the companypany in its railway business .
