STATE OF WEST BENGAL vs GHUSICK & MUSLIA COLLIERIES LTD.

The Supreme Court held that the cess levied on the sale of percolated water from coal mines is justified under Section 6 of the Bengal Cess Act, 1880. The Court clarified that income derived from the sale of such water constitutes profit from the mine, regardless of whether it is a casual or regular income. The High Court's decision to quash the cess was overturned, affirming that the water sold is indeed part of the gross earnings from the mining operations.