ULTRA TECH CEMENT LTD.versusSTATE OF MAHARASHTRA & ANR.

                   (2011) 11 S.C.R. 613


              ULTRA TECH CEMENT LTD.                           A
          (EARLIER ULTRATECH CEMCO LTD.)
                             V.
           STATE OF MAHARASHTRA & ANR.
             (Civil Appeal No. 864 of. 2005)
                  SEPTEMBER 27, 20·11                          B
[R.V. RAVEENDRAN, A. K. PATNAIK AND SUDHANSU
           JYOTI MUKHOPADHAYA, JJ.]

    MINERAL CONCESSION RULES, 1961:                            c
     r. 27 (1) (d) - Mining lease ...; Lessee from the State
Government - Demand for Zilla Parishad Gess (ZP cess) and
Gram Panchayat Gess (GP cess) - Held: Where a particular
cess is /eviab/e under an enactment, and the contract says
that the lessee is liable to pay such cess leviab/e under that D
enactment, but the enactment exempted a specified class of
persons (to which the lessee belongs) from paying the said
cess, the State Government cannot make the lessee liable
to pay the said cess on the ground that under the contract
entered under a different eneactment, the lessee is liable to E
pay such cess - In the instant case, since the assessee being
a lessee from the Government is by virtue of s. 151 of Zita
Parishads and Panchayat Samitis Act, 1961 is exempt from
paying GP cess under the Act, cess cannot be levied in terms
of a contract- Similarly, as the lessee is, under clause V/1(1) F
of the /ease deed, exempt from land revenue, it is not liable
to pay GP cess - Thus, the lessee is not liable to pay ZP cess
or GP cess to the State Government under the lease deed -
However, it is made clear that if ZP cess and GP cess become
payable by the assessee by virtue of any amendment to the G
provisions of the respective enactments under which such
cesses are leviable, then the lessee may have to pay the
same - Maharashtra Zita Parishads and Panchayat Samitis
Act, 1961 - s. 151(1) - Bombay Gram Panchayats Act, 1958
                            613                                H
    614      SUPREME COURT REPORTS              [2011] 11 S.C.R.

A - s. 127 (1) - Maharashtra Land Revenue Code, 1966 - s.
  64.
          WORDS AND PHRASES:
        Expression 'assessable' and 'cess assessable on land'
    - Explained.
8
       The appellant, under the lease deed dated 12.2.1980,
  was granted a lease by the State Government for mining
  limestone. It approached the High Court challenging the
  demand for payment of Zila Parishad Cess (ZP cess) and
c Gram Panchayat. Cess (GP cess) on the ground that s.
  151 (1) of the Maharashtra Zilla Parishads and Panchayat
  Samitis Act, 1961 exempted the lessees from the State
  Government from payment of ZP cess and as per s. 64
  of the Maharashtra Land Revenue Code, 1966, read with
0 Clause Vll(1) of the lease deed, it was not liable to pay
  the GP cess also. The High Court declined to interfere.
          Allowing the appeal, the Court
       HELD: 1.1 Where a particular cess is leviable under
  an enactment, and the contract says that the lessee is
E liable to pay such cess leviable under that enactment, but
  the enactment exempted a specified.class of persons (to
  which the lessee belongs) from paying the said cess, the
  State Government cannot make the lessee liable to pay
  the said cess on the ground that under the contract
F entered under a different enactment, the lessee is liable
  to pay such cess. [para 7] [621-E·F]
       1.2 It Is evident from the provision of s.151 (1) of the
  Maharashtra Zilla Parishads Act that a 'lessee from the
  state government' is not liable to pay ZP cess under the
G said provision. The ZP cess can be levied only in terms
  of and under the Zilla Parishads Act and cannot be levied
  by the State Government, under the "terms of a contract.
  [para 7) [621-D]
H         1.3 It is significant to note that the State Government
ULIKA lt:t;H t;t:MENT LTD. (EARLIER ULTRATECH CEMCO 615
           LTD.) v. STATE OF MAHARASHTRA

has stipulated in the lease that the mining lessee shall A
pay ZP cess assessable on the land. It has not used the
words 'an amount equivalent to ZP cess that could be or
may be assessed on the land.' The word 'assessable'
means liable to be assessed. The effect of clause V(4) of
the lease deed providing that the mining lessee shall pay B
'ZP cess assessable on the land' is this: if it is liable to
be paid under the Zilla Parishads Act, that should be paid
by the lessee and payment thereof is a term of the lease;
and if the lessee is not liable to pay ZP cess in view of
the exemption under the ZP Act, it is not payable. [para 6 c
and 8) [620-E; 622-C)
     1.4 There is yet another indication that what is
required to be paid is ZP cess, only if it is leviable under
Zilla Parishads Act. Clause V(4) provides that the mining
lessee shall pay "cesses assessable on the land (ZP and D
GP cesses) subject to the revision of rates prescribed by
Government from time to time." This refers to revision by
the State Government in exercise of the power u/s151(1)
of Zilla Parishads Act and not in exercise of any power
under the lease deed, as a lessor. This also shows that E
ZP cess as revised under the Zilla Parishads Act is
payable only if it is payable under the Zilla Parishads Act
and not otherwi~e. [para 10) [622-H; 623-A-B]
    2. Section 127(1) of the Bombay Gram Panchayats
Act, 1958 casts a liability to pay one hundred paise as F
cess on every rupee of evety sum payable to the state
government as ordinary land revenue. This cess is
described as Gram Panchayat cess or GP cess. The
effection of s. 127(1) is that only a person who is liable
to pay land revenue will be liable to pay GP cess. Section G
64 of the Land Revenue Code provides that all lands are
liable to payment of land revenue to the State
Government except such as may be wholly exempted
under the provisions of the special contract with the state
                                                            H
     616     SUPREME COURT REPORTS               [2011] 11 S.C.R.


A    government. Clause Vll(1) of the lease deed dated
     12.2.1980 between State Government and the appellant
     provides such exemption as it says the lessee shall not
     be liable to pay land revenue. Thus, there is a special
     contract between the State and the appellant whereby the
1B   appellant is exempted from paying land revenue and, as
     such, it will not be liable to pay any GP cess, as s.127(1 )'
     makes it clear that the said cess is payable only on the
     amount payable as land revenue. Therefore, the appellant
     is not liable to pay GP cess under the Panchayats Act.
c    Clause V(4) of the lease deed requires payment of GP
     cess only if it is payable under the Panchayats Act. For
     the reasons stated while dealing ZP cess, it is held that
     the appellant is not liable to pay GP cess also.'[para 12
     and 13] (624-G; 625-G-H; 626-A]
D         3. The appellant is not liable to pay ZP cess or GP
     cess to the State Government under the lease deed. It is
     however made clear that if the said cesses (ZP cess and
     GP cess) become payable by the appellant by virtue of
     any amendment to the provisions of the respective
E    enactments under which such cesses are leviable, then
     the appellant may have to pay the same. The judgment
     of the .High Court is set aside. The writ petition filed
     before the High Court stands allowed and the demand
     notices dated (nil) July 1991 as amended on 28.10.1994
F    in regard to the period 1987 to 1992 are quashed in so
     far as the demand for payment of ZP cess and CP cess
     is concerned. [para 15 and 16] (621-E-G]
          CIVIL APPELLATE JURISDICTION: Civil Appeal No. 864
     of 2005.
G         From the Judgment and Order dated 03.06.2003 of the
     High Court of Judicature at Bombay, Nagpur Bench in Writ
     Petition No. 2922 of 1999.
         Bharat Sangal, R.R. Kumar and Srijana lama for the
H    Appellant.
ULTRA TECH CEMENT LTD. (EARLIER ULTRATECH CEMCO 617
          LTD.) v. STATE OF MAHARASHTRA

    Madhavi Divan and Asha Gopalan Nair for the                     A
Respondents.  \
    The Judgment of the Court was delivered by
     R. V. RAVEENDRAN J. 1. The appellant (the term
'appellant' refers to Mis Larsen & Toubro Ltd. till date of its     8
demerger in 2004 and thereafter to Mis. Ultra Tech Cement
Ltd.) obtained a mining lease for limestone from the Government
of Maharashtra, as per lease deed dated 12.2.1980. Under the
terms of the said lease, the appellant as lessee was required
tO pay dead rent as per clause V(1) and (2), royalty in terms of    C
clause V(3) and surface rent, water rate and cesses in terms
of clauses V(4) of the lease deed. In response to a notice
served by the Collector on the appellant demanding payment
of surface rent (equal to non-agricultural assessment) and the
Zilla Parishad Cess (for short 'ZP Cess') and Gram Panchayat
Cess (for short 'GP Cess'), the appellant informed the Collector    D
by letter dated 3.1.1991, that it was not liable to pay the ZP
cess and GP cess and that those cesses may be deleted from
the demand. However by notice of demand dated (nil) July
 1991, revised by notice dated 28.1.1994, the Collector,
Chandrapur, reiterated the demand for surface rent as also the      E
ZP and GP cesses for the years 1987 to 1992, on the following
ground:
    "The Government of Maharashtra vide its letter Industries
    Energy and Labour Department (IND) No.TQCR-21761                F
    4569111172/IND-9 Bombay dated 13.06.1978 and
    Director, Geology & Mining, Govt.of Maharashtra, Nagpur
    vide letter No.STC/295/39/2007 dated 09.06.1989 have
    issued instructions regarding fixation of surface rent on the
    lease area used for mining purpose. As per these
    directives and Rule 27(1)(d) of Mineral Concession Rules,       G
    1960, the lessee is required to pay the surface rent at such
    rate not exceeding the land revenue and the cesses
    assessable on the land. Since the mining operation is the
    use of land other than the Agriculture purpose, the rate of
                                                                    H
    618      SUPREME COURT REPORTS                [2011] 11 S.C.R.

A         non-agricultural assessment, together with the cesses
          assessable on the land, are applicable for levying the
          surface rent."
                                               (emphasis supplied)

8        2. The appellant was aggrieved by the demand in so far
  as it relates to ZP cess and GP cess. According to appellant
  section 151 ( 1) of Maharashtra Zilla Parishads and Panchayat
  Samitis Act, 1961 ('Zilla Parishad Act' for short) exempted the
  lessees from the state government from payment of the ZP
C cess. The appellant also contended that it was not liable to pay·
  the GP cess, as section 127 (1) of Bombay Gram Panchayats
  Act, 1958 ('Panchayats Act' for short) provides for levy of GP
  cess at the rate of one hundred paise on every rupee payable
  to the state government as ordinary land revenues in the area
  within the jurisdiction of the Panchayat, and as the appellant
0 was exempted from paying land revenue under section 64 of
  the Maharashtra Land Revenu., Code, 1966 ('Revenue Code'
  for short) read with clause Vll(1) of the lease deed, it was not
  liable to pay the GP cess also. The appellant admitted the
  liability to pay surface rent equal to non-agricultural assessment.
E
        3. On the other hand, the respondents contend that the
  demand for ZP cess and GP cess is authorized by Rule
  27(1)(d) of the Mining Concession Rule, 1960 ('MC Rules' for
  short) read with clause V(4) of the lease deed and the appellant
F is liable for the same. The submission of the respondents is
  that they have not made any demand for cess under the Zilla
  Parishads Act or Panchayats Act and that the demand for ZP
  cess and GP cess is as a part of the surface rent. According
  to the respondents, the reference to ZP cess and GP cess
  assessable on the land, in the lease deed is only for the
G purpose of arriving at the figure of surface rent. The
  respondents' submission is that though "cesses per se could
  not have been levied under the Mineral Concession Rules",
  cesses assessable on the land has been demanded as a
  mode of calculating the charges for the surface area used by
H the lessee; and so long cic: thi:> ::imount charqed does not exceed
ULTRA TECH CEMENT LTD. (EARLIER ULTRATECH CEMCO 619
 LTD.) v. STATE OF MAHARASHTRA [R.V. RAVEENDRAN, J.]
the land revenue plus ZP cess and GP cess assessable on the       A
land, the lessees can have no grievance.
    4. On the rival contentions urged, two questions arise for
our consideration:
     (i)    Whether the appellant is liable to pay ZP Cess?       B
     (ii)   Whether the appellant is liable to pay GP Gess?
Re: Question No.(i)
     5. Rule 27 of the Mining Concession Rules, 1960
prescribes the conditions subject to which a mining lease         c
should be made. Clause (d) of sub-section (1) thereof is
relevant and is extracted below :
    "27. Conditions - (1) Every mining lease shall be subject
    to the following conditions - xxxx          xxxx
                                                                  D
    (d) the lessee shall also pay, for the surface area used by
    him for the purposes of mining operations, surface rent and
    water rate at such rate, not exceeding the land revenue,
    and cesses assessable on the land, as may be specified
    by the State Government in the lease."
                                                                  E
    (emphasis supplied)
    Clause 4 of Part V of the lease deed reads thus:
    "The lessee/lessees shall pay rent and water rate to the
    State Government in respect of all parts of the surface of F
    the said lands which shall from time to time be occupied
    or used by the lessee/lessees under the authority of those
    presents at the rate of Rs ... and Rs ... respectively per
    annum per hectare of the area so occupied or used and
    so in proportion for any area less than a hectare during G
    the period from the commencement of such occupation or
    use until the area shall cease to be so occupied or used
    and shall as far as possible restore the surface land so
    used to us in original condition. Surface rent and water rate
    shall be paid as hereinbefore detailed in clause (2)
    provided that no such rent/water rate shall be payable in H



                                                                      .--
    620       SUPREME COURT REPORTS                  [2011] 11 S.C.R.


A         respect of the occupation and use of the area comprised
          in any roads or ways to which the public have full right of
          access.
          1. Surface rent equal the non-agricultural assessment.

B         2. Water rates not exceeding the land revenue.
          3. Cesses assessable on the land (ZP and GP Cesses)
          subject to the revision of rates prescribed by government
          from time to time."
                                                 (emphasis supplied)
c
    A combined reading of Rule 27(1)(d) of the Rules and Clause
    V(4) of the lease deed, makes it clear that the lessee under the
    mining lease deed is liable to pay, in addition to dead rent and
    royalty, the following amounts : (i) surface rent equivalent to non-
D   agricultural assessment; (ii) water rate not exceeding the land
    revenue and (iii) cesses assessable on the land specified by
    the state government in the lease, that is ZP cess and GP cess
    assessable on the land subject to revision of rates prescribed
    by government from time to time.
E        6. What is significant to note is that the State Government
    has stipulated in the lease that the mining lessee shall pay ZP
    cess assessable on the land. It has not used the words 'an
    amount equivalent to ZP cess that could be or may be assessed
    on the land.' The word 'assessable' means liable to be
F   assessed. Therefore when Clause V(4) of the lease deed
    requires the lessee to pay ZP cess assessable on the land, it
    would mean that the mining lessee would be liable to pay ZP
    cess if it is so due under the Maharashtra Zilla Parishads Act.
         7. Section 151 (1) of the Zilla Parishad Act which is relevant
G   is extracted below:
          "151. (1) - In the Vidarbha area of the State of
          Maharashtra, every malik-makhuza, raiyat malik and
          occupant and every raiyat, other than a sub-tenant and
          lessee from the State Government shall be liable in
H         respect of the land held by him in the district to pay cess
ULTRA TECH CEMENT LTD. (EARLIER ULTRATECH CEMCO 621
 LTD.) v. STATE OF MAHARASHTRA [R.V. RAVEENDRAN, J]
    for the purpose of this Act at the rate of twenty paise or at   A
    such increased rate not.exceeding two hundred paise as
    may be determined by the State Government under section
    155 on every rupee of the land revenue or rent assessed
    or fixed on such land or the lease money payable in respect
    thereof, whether or not such land revenue or rent or lease      B
    money or any portion thereof has been released,
    compounded for or redeemed.
     [Note : the words in italics should be read as 'at the rate
     of two hundred paise or at such increased rate not
     exceeding seven hundred paise as may be determined by C
     the concerned Divisional Commissioner" after amendment
     of section 151 (1) by Maharashtra Act 1 of 1993]
                                            (emphasis supplied)
It is evident from the said provision of the Zilla Parishad Act that o
a 'lessee from the state government' is not liable to pay ZP cess
under section 151 (1) of the Zilla Parishads. The ZP cess can
be levied only in terms of and under the Zilla Parishads Act and
cannot be levied by the state government, under the terms of a
contract. Where a particular cess is leviable under an E
enactment, and the contract says that the lessee is liable to pay
such cess leviable under that enactment, but the enactment
exempted a specified class of persons (to which the lessee
belongs) from paying the said cess, the state government
cannot make the lessee liable to pay the said cess on the F
ground that under the contract entered under a different
enactment, the lessee is liable to pay such cess. For example,
if a Sales Tax Act exempts the sale of particular goods from
tax, the seller of such goods cannot demand Sales Tax on the
ground that the contract of sale provides that the buyer is liable G
to pay all taxes leviable under any enactment. It follows that if a
lessee from the State Government is exempted from payment
of ZP cess leviable under section 151 ( 1) of the Zilla Parishads
Act, by section 151 (1) itself, the State Government cannot 'lev"y'
the said ZP cess under a contract entered in terms of the
Mineral Concession Rules. For payment of a cess under a H
    622      SUPREME COURT REPORTS                   [2011} 11 S.C.R.


A   particular Act, liability under that Act is condition precedent.
    Therefore if ZP cess is not due or payable by a lessee under
    the ZP Act, the State cannot say that the amount is due under
    the lease deed executed in terms of the Mineral Concession
    Rules.
B        8. The effect of clause V(4) of the lease deed providing
    that the mining lessee shall pay 'ZP cess assessable on the
    land' is this: if it is liable to be paid under the Zilla Parishads
    Act, that should be paid by the lessee and payment thereof is
    a term of the lease; and if the lessee is not liable to pay ZP
C   cess in view of the exemption under the ZP Act, it is not
    payable. The position would have been different if the lease
    deed had stipulated that the lessee is liable to pay as
    consideration, in addition to other sums payable, a sum
    equivalent to ZP cess under Zilla Parishad Act, irrespective of
D   whether the lessee is liable to pay such cess under the Zilla
    Parishads Act or not. If the lease deed had contained such a
    term, the lessee would have been liable to pay a sum
    equivalent to ZP cess, irrespective of his liability under the Zilla
    Parishads Act.
E      9. We may in contrast, refer to the term in the lease
  regarding payment of surface rent. The clause says what is
  payable is 'surface rent equal the non-agricultural assessment'.
  The clause does not say that the lessee is liable to pay 'non-
  agricultural assessment' assessable on the land. Consequently,
F irrespective of whether non-agricultural assessment is leviable
  or not under the Maharashtra Land Revenue Code, 1966, the
  lessee shall be liable to pay an amount equivalent to non-
  agricultural assessment, as surface rent. What is payable under
  the contract is 'surface rent' and non-agricultural assessment
G is made only the basis for quantification of the surface rent. But
  the wording relating tO payment of ZP cess and GP cess, are
  significantly different from the wording relating to payment of
  surface rent.
          10. There is yet another indication that what is required to
H
ULTRA TECH CEMENT LTD. (EARLIER ULTRATECH CEMCO 623
 LTD.) v. STATE OF MAHARASHTRA [RV. RAVEENDRAN, J.]
be paid in ZP cess, only if it is leviable under Zilla Parishads       A
Act. Clause V(4) provides that the mining lessee shall pay
"cesses assessable on the land (ZP and GP cesses) subject
to the revision of rates prescribed by Government from time
to time." This refers to revision by the State Government in
exercise of the power under section 151(1) of Zilla Parishads          B
Act and not in exercise of any power under the lease deed, as
a lessor. This also shows that ZP cess as revised under the
Zilla Parishads Act is payable only if it is payable under the Zilla
Parishads Act and not otherwise.
Re: Question No.WI                                                     C
     11. Section 127 of the Bombay Gram Panchayats Act,
1958 deals with ·levy and collection of cess. The said section
is extracted below :
     "(1) The State Government shall levy cess at the rate of          D
     one hundred paise, on every rupee of every sum payable
     to the state government as ordinary land revenue in the
     area within the jurisdiction of a panchayat and thereupon,
     the slate government shall (in addition to any cess leviable
     under the Maharshtra Zilla Parishads and Panchayat                E
     Samitis Acl1 "1'961) levy and collect such cess in such area.
     (2) to (4) deleted by Maharashtra Act 10 of 1992.
     (5) For the purpose of levying and collecting the cess
     referred to in sub-section (1), in the Bombay area athe
                                                                       F
     provisions of section 144 (including the Fourth Schedule),
     145, 147 and 149, in the Vidarbha area, the provisions of
     section 151, and in the Hyderabad area, the provisions of
     section 152 of the Maharashtra Zilla Parishad an~
     Panchayat Samitis Act, 1961, shall apply thereto as they
     apply to the levy of cess leviable under section 144, section     G
     151, -Or as the case may be, section 152 of that Act."
                                             (emphasis supplied)
Section 64 of the Maharashtra Land Revenue Code, 1966
('Code' for short) reads thus:                                         H
    624       SUPREME COURT REPORTS                 [2011] 11 S.C.R


A         "64. All land liable to pay revenue unless specially
          exempted.
          All land, whether applied to agricultural or other purposes,
          and wherever situate, is liable to the payment of land
          revenue to the State Government as provided by or under
B         this Code except such as may be wholly exempted under
          the provisions of any special contract with the State
          Government, or an any law for the time being in force or
          by special grant of the State Government.
          But nothing in this Code shall be deemed to affect the
c         power of the Legislature of the State to direct the levy of
          revenue on all land under whatever title they may be held
          whenever and so long as the exigencies ·of the State may
          render such levy necessary."
D                                               (emphasis supplied)
         The term 'land revenue' is defined in section 2(19) of the
    said Code as under:-
          "(19) "land revenue" means all sums and payments, in
          money received or legally claimable by or on behalf of the
E
          State Government from any person on account of any land
          or interest in or right exercisable over land by or vested in
          him, under whatever designation such sum may be
          payable and any cess or rate authorised by the State
          Government under the provisions of any law for the time
F         being in force; and includes premium, rent, lease money,
          quit rent, judi payable by an inamdar or any other payment
          provided under any Act, rule, contract or deed on account
          of any land."
G      12. Section 127(1) of the Panchayats Act casts a liability
  to pay one hundred paise as cess on every rupee of every sum
  payable to the state government as ordinary land revenue.
  This cess is described as Gram Panchayat cess or GP cess.
  The effection of section 127(1) is that wherever land revenue
H is payable by a person, such person liable to pay the land
ULTRA TECH CEMENT LTD. (EARLIER ULTRATECH CEMCO 625
 LTD.) v. STATE OF MAHARASHTRA [RV. RAVEENDRAN, J.]

revenue, will also have to pay GP cess equal to the amount of A
the land revenue. Therefore only a person who is liable to pay
land revenue will be liable to pay GP cess. Section 64 of the
Land Revenue Code provides that all lands are liable to
payment of land revenue to the state government except such
as may be wholly exempted under the provisions of the special B
contract with the state government. Clause Vll(1) of the lease
deed dated 12.2.1980 between State Government and the
appellant provides such exemption as it says the lessee shall
not be liable to pay land revenue. We extract below clause (1)
of Part VII of the lease deed for ready reference:             c
    "Lessee to pay rents and royalties. taxes. etc.
     1. The lessee/lessees shall pay the rent, water rate and
     royalties reserved by this lease at such times and in the
     manner provided in the PARTS V and VI of these presents
     and shall also pay and discharge all taxes, rates
                                                                 0
   · assessment and impositions whatsoever being in the
     nature of public demands which shall from time to time be
     charged, assessed or imposed by the authority of the
     Central and State Governments upon or in respect of the
     premises and works of the lessee/lessees in common with     E
     other premises and works of the like nature except
     demands for land revenues."
                                          (emphasis supplied)
      13. Even under Clause V(4) of the lease deed, what is F
liable to be paid is 'surface rent' which is equivalent to the non-
agricultural assessment, and not land revenue, that is non-
agricultural assessment itself. Thus there is a special contract
between the State and the appellant whereby the appellant is
exempted from paying land revenue. If the appellant is not liable G
to pay the land revenue, it will not be liable to pay any GP cess,
as section 127(1) makes it clear that the said cess is payable
only on the amount payable as land revenue. If no amount is
payable as land revenue, it follows as no amount is payable
as GP cess. Therefore appellant is not liable to pay GP cess H
    626     SUPREME COURT REPORTS                 [2011) 11 S.C.R.

A   under the Panchayats Act. Clause V(4) of the lease deed
    requires payment of GP cess only if it is payable under the
    Panchayats Act. For the reasons stated while dealing ZP cess,
    we hold that the appellant is not liable to pay GP cess also.
    Conclusion
B
          14. The object of clause V(4) of the lease deed is clear.
    Normally, all leases will contain a provision as to who will be
    liable to pay the rates, taxes, cesses on the property leased. If
    the lease deed is silent, then the lessor would be liable to bear
C   and pay the rates, taxes and cesses. Therefore, where the
    understanding is that the lessee should be liable to pay the
    rates, taxes and cesses in addition to the rent or premium, the
    lease deed will provide specifically that the lessee shall bear
    and pay all rates, taxes and cesses. But this is always on the
    assumption that there is a liability under the respective
D   enactments to pay any rates, taxes, cesses in respect of the
    property. All that clause V(4) of the lease deed provides is that
    the lessee should bear and pay the ZP cess and GP cess, if it
    is leviable under the respective enactments.
E        15. In view of the above, we accept the contention of the
    !iPPellant that it is not liable to pay ZP cess or CP cess to the
    State Government under the lease deed. It is however made
    clear that if the said cesses (ZP cess and CP cess) become
    payable by the appellant by virtue of any amendment to the
F   provisions of the respective enactments under which such
    cesses are leviable, then the appellant may have to pay the
    same. Be that as it may.
         16. The appeal is therefore allowed. The judgment of the
    High Court is set aside. The writ petition filed before the High
G   Court stands allowed and the demand notices dated (nil) July
    1991 as amended on 28.10.1994 in regard to the period 1987
    to 1992 is quashed in so far as the demand for payment of ZP
    cess and CP cess.

    RP.                                            Appeal allowed.
H