TMI Blog1970 (4) TMI 165X X X X Extracts X X X X X X X X Extracts X X X X ..... ctor of Burdwan under Section 72 of the Bengal Cess Act of 1880 (to be hereinafter referred to as the Act). Therein the company valued the coal supplied by the colliery to the factories mentioned earlier at ₹ 6/11/5 per ton, a sum less than the actual cost of raising the coal and computed the profits of the colliery on that basis. The company adopted the same basis for the purpose of paying education cess under Section 31 of the Bengal Primary Education Act, 1930. The provisions of the said Act in the matter of levy of education cess are similar to that of the Act. The Cess Deputy Collector who was the assessing authority under the Act as well as the Collector of Burdwan, the assessing authority under the Bengal Primary Education Act, rejected the returns submitted by the respondent company and computed the profits of the colliery, valuing the coal supplied by it to the factories mentioned at ₹ 12/8/- per ton which was the control rate at the relevant time. On that basis the cess Deputy Collector called upon the respondent company to pay ₹ 39,852/5/- as road cess and public works cess for the years 1946-47, 1947-48 and 1948-49. The Collector of Burdwan computed th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of lands and until provision to the contrary is made by Parliament, on the annual net profits from mines, quarries, tramways, railways and other immovable property ascertained respectively as this Act prescribed. 6. That section further provides that the rates at which such cesses respectively shall be levied for each year shall be determined for such year in the manner prescribed in the Act. Part II of the Act sets out the mode of assessment. Chapter II lays down the procedure for the valuation of lands. Chapter III provides for rating and levy of cesses. Chapter IV prescribes the mode of valuation and assessment of lands held rent free and payment and recovery of cesses in respect thereof. Chapter V deals with valuation, assessment and levy of cess on mines, railways and other immovable property. This chapter contains Sections 72 to 84. Section 72 at the relevant time read : 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 pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned in Section 35, prefer his objections to the Collector; and if such objections, or any of them, are disallowed, may within one month of such disallowance, appeal to the Commissioner against such valuation, and the decision of the Commissioner shall be final. 8. Before proceeding to discuss the questions of law arising in this appeal, it is necessary to mention that the respondent company had unsuccessfully appealed against cesses imposed on it. 9. It was urged on behalf of the respondent that supply of coal made by Ramnagar colliery to the factories and workshops cannot be considered as a sale and without a sale, there can be no profit; and hence in computing the profits of the colliery the value of the coal supplied to the factories and workshops mentioned earlier should not have been taken into consideration. This contention has to be rejected in view of the decision of this Court in Tata Iron and Steel Co. Ltd. v. The State of Bihar [1963] Supp. 1, S.C.R. 199. The ratio of that decision directly bears on the point under consideration. It may be noted that the appellant therein as well as respondent in this appeal are both Tata concerns. In that case the appellant compan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ning was that of the iron and in the other it is coal makes no difference in principle. In that case this Court ruled that the winning of the ore and converting it into a finished product could not be construed as two transactions conducted by them but it should be viewed as a single integrated undertaking for the production of steel and steel products. Similar is the position in the present case. Hence we hold that it was open to the assessing authority to take into consideration the value of the coal supplied to the factories and workshops referred to earlier in computing the profits of the colliery. 10. Mr. Chagla next assailed the cesses imposed on another ground. He contended that in view of the decision of this Court in Tata Iron and Steel Company's case [1963] Supp. S.C.R.199 it was not open to the assessing authority to value the coal supplied to the factories and workshops at the controlled rate; he should have, as suggested in that decision disintegrated the ultimate profits earned and found out the profit earned by the mine. We are of the opinion that it is impermissible for us to go into that question in these proceedings. The liability to pay tax is one thing an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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