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of <h1>Railway company entitled to relief despite delay, cess payments to be reassessed based on net profits.</h1> <h3>DEHRI ROHTAS LIGHT RAILWAY COMPANY LIMTED Versus DISTRICT BOARD BHOJPUR AND ORS.</h3> DEHRI ROHTAS LIGHT RAILWAY COMPANY LIMTED Versus DISTRICT BOARD BHOJPUR AND ORS. - 1993 AIR 802, 1992 (2) SCR 155, 1992 (2) SCC 598, 1992 (3) JT 573, 1992 ... Issues involved: Interpretation of the Bengal Cess Act IX of 1880, legality of demands for cess, challenge of demands based on net profits, delay in seeking relief, jurisdiction of Cess Authorities, relief sought by the appellant.Interpretation of Bengal Cess Act: The appellant, a railway company, operated a light railway in Bihar and was liable to pay cess to the District Board u/s 5 of the Bengal Cess Act IX of 1880. The Act mandated that immovable properties were subject to local cess, assessed on net profits from specific properties like railways.Legal challenge and history of demands: The company entered an agreement with the District Board for a fixed annual cess payment. Disputes arose when demands were made based on overall railway business profits, not just immovable property. Lawsuits and writ petitions were filed contesting these demands.Delay in seeking relief: The High Court dismissed a writ petition due to delay, but the Supreme Court held that the delay did not disentitle the appellant from remedies, especially as the demands were based on an incorrect legal premise.Relief and directions: The Court ruled that demands for certain years were unsustainable and directed Cess Authorities to reassess cess based only on net profits from immovable properties. The appellant agreed not to seek refunds from the District Board for any excess cess paid.Conclusion: Civil Appeal related to the suit was dismissed, while the Writ Petition was allowed with directions for reassessment of cess payments. Each party was directed to bear their own costs.
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