S. K. MOHANTY, J.

( 1 ) UNION of India through the two petitioners who are high ranking Engineers of South Eastern Railways challenge the liability of the Indian Railways and their contractors for payment of royalty and cess to the State Government, in respect of materials recovered from railway land and utilised in construction and laying down of railway lines.

( 2 ) FOR Morapur-Rayagada Railway line and Raipur-Vijayanagaram doubling railway line projects, certain lands were acquired by the State of Orissa and possession of the same was handed over to the Railways, who have also paid compensation as fixed under the Land Acquisition Act. After taking over possession, the railways took up the work of laying down railway lines and utilised materials namely the rock-cut spoils and earth recovered during excavation. In respect of such materials. the Tahasildars, Koraput, Rayagada and Patangi initiated proceedings for realisation of royalty and cess from the railways and its contractors. They and the higher revenue authorities have held that the railways are liable to pay royalty and cess in respect of above materials recovered from the land whose possession had been handed over to th