TATA IRON AND STEEL CO. LTD. vs THE STATE OF BIHAR (And connected appeals)

The Supreme Court ruled that under Sections 5, 6, and 72 of the Bengal Cess Act, 1880, as amended in Bihar, a mine owner is liable to pay cess on the annual net profits derived from mining activities, even if the ore is not sold as such but used for manufacturing finished products. The Court held that profits from mining can be ascertained and taxed, distinguishing the case from Kikabhai Premchand v. Commissioner of Income-tax, Bombay. The appeals were dismissed, affirming the levy of cess on the profits derived from the mining operations.