(1)Subject to the conditions, if any, imposed or agreed to by the [State Government] [Substituted for the word 'Provincial' by the Adaptation of Laws Order, 1950.], such Government may assess and levy water-dues in respect of-(i)canals made after the commencement of this Act :(ii)canals made before the commencement of this Act -(a)when the right to, or question of, water-dues has been expressly reserved by such Government, or(b)when the conditions upon which the owner of the canal has been allowed to use the water have been agreed on for a term and that term has expired, orwhen such water-dues were already levied at the commencement of this Act.(2)The demand on account of water-dues shall be assessed for a term of years, and shall be limited to an amount not exceeding one-quarter of the net profits which are likely to accrue to the owner of the canal during that term.
