Shah, J. - (1.) This is an appeal with special leave against the order of the Railway Rates Tribunal constituted under Section 34 of the Indian Railways Act 9 of 1890.
(2.) The West Coast Paper Mills Ltd.- hereinafter called 'the Company'- is a manufacturer of paper and paper products. It has set up a factory at Bengurnagar in Dandeli at the terminus of Alnawar-Dandeli branch line of the Southern Railway. This branch line 32 Kilometers in length was a "light railway" constructed and opened for traffic by the Government of Bombay in 1919, principally for the purpose of transporting forest produce collected in the surrounding region. With the reorganization of the States under the States Reorganization Act the ownership of the Railway passed to the Mysore Government. The Railway was finally taken over by the Government of India with effect from October 1, 1962, and now forms part of the Indian Railways.
(3.) The Company used the branch line for transporting coal, limestone etc., required for its manufacturing activities, and also for transporting its manufactured products. Initially the Railways were levying freight over this branch line at "common rates" for all commodities on "a weight basis". On representations made by the users of this branch line, the Indian Railways substituted, with effect from February 1, 1964, the "standard telescopic class rates". In charging the goods freight, however, the actual distance of the branch line was multiplied by three.;