ORDER

This appeal by special leave arises from the judgment of the Division Bench of Bombay High Court passed in Writ Petition No. 1509 of 1981 on November 8, 1989. The primary question is: whether the State legislature has power to levy rates of cess on use of flowing water from the river Wana .

2. The facts are as under. The appellant had installed a mill in the year 1898 and has been drawing water for industrial purpose from the said river by installing water pumps at its bank with the help of artificial contrivance. Under Section 70 of the Maharashtra Land Revenue Code, 1966, (for short the Code ), the Government of Maharashtra passed the following Resolution on June 5, 1972 thus :

"In exercise of the power conferred in it by Section 70 of the Maharashtra Land Revenue Code, 1966 the Government is pleased to sanction the following rates for the use of water (the right to which vest in Government and in respect of which no rate is liable under any law in force in any part of the State) for non-agriculture purpose.

Non-Agriculture Purpose Rate Unit

1. Industrial Purpose (a) Rs. 8/- for Per ten thou- the first two