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TMI Blog1985 (3) TMI 4X X X X Extracts X X X X X X X X Extracts X X X X ..... in the profit from, the mine or not. We have not the slightest doubt that the income derived by sale of water pumped out from the coal mine constitutes a profit derived from the mine. Appeal allowed. - - - - - Dated:- 15-3-1985 - Judge(s) : R. B. MISRA., O. CHINNAPPA REDDY JUDGMENT The judgment of the court was delivered by MISRA J.-The present appeal by special leave directed against the judgment of the Calcutta High Court dated October 10, 1969, involves the interpretation of sections 6 and 72 of the Bengal Cess Act, 1880, and arises in the following circumstances. The respondent company is the owner of a colliery situate at Ghusick, Kalapahari within the district of Burdwan. As usual with coal mines, the percolated water which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n appeal before the Collector of Burdwan, who found that the cess levied was not contrary to the provisions of the Act and the rules framed thereunder, as the income was derived by the employment of machinery and staff of the coal mine. The respondent feeling aggrieved went up in revision before the Commissioner of Burdwan Division but that also met the same fate. The Commissioner took the view that the water which is pumped out to save the colliery from drowning is then sold at vast profit and, therefore, it comes within the ambit of the term "gross earnings" and, as such, was liable to cess. The respondent went up in further revision before the Board of Revenue but the second revision was also dismissed. Undaunted by these failures the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the contrary is made by Parliament, on the annual net profits from mines, quarries, tramways, railways and other immoveable properties ascertained respectively as in this Act prescribed." Section 72 reads : "On the commencement of this Act in any District and thereafter before the close of each year, the Collector of the District shall cause a notice to be served upon the owner, chief agent, manager or occupier of every mine, quarry, tramway, railway and other immovable property not included within the provisions of Chapter 11 ; such notice shall be in the form in Schedule E contained, and shall require such owner, chief agent, manager or occupier to lodge in the office of such Collector within two months a return of the net annual ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ITR 123 (SC). In that case, the appellant company was the owner of certain mine in Bihar from where it extracted iron ore which it utilised in its factory at Jamshedpur for making iron and steel. Under sections 5 and 6 of the Bengal Cess Act, 1880, as amended in Bihar, all immovable property situate in any part of the State of Bihar was liable to payment of local cess, which in the case of mines was to be assessed on the annual net profits from them. For the assessment year 1954-55, the company was assessed by the Cess Deputy Collector on the basis that it had made a profit of Rs. 4-7-0 per ton of iron ore extracted. The appellant claimed that it was not liable to the levy of cess under the Act because it did not sell any ore as such and c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed. Counsel for the respondent on the other hand contended that the income by sale of water was only a casual income and not a regular permanent income and, therefore, it could not be assessed to cess. We see no force in this contention. Section 6 does not make any distinction as to whether the income is casual or a regular one. All that we are concerned with is whether the income derived by the sale of water pumped out from the mine is included in the profit from, the mine or not. We have not the slightest doubt that the income derived by sale of water pumped out from the coal mine constitutes a profit derived from the mine. From the foregoing discussion the appeal must succeed. It is accordingly allowed and the judgment of the High Co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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