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(1) The Army Cantonment and Military Engineering Services shall pay for the net cost of disposal of sewage borne by the Board at the rate calculated in the manner fixed by the Board with the approval of the Regulatory Authority and subject to such directions as may be issued by the Government. (2) To determine the total net cost of disposal of all sewage, the Board shall take into account such items of expenditure incurred by it as may be prescribed by the regulations made in this behalf. Disputes as to the liability for payment to or by the Board