SARASWATI SUGAR MILLS Vs. HARYANA STATE BOARD

JUDGEMENT

(1.) Leave granted in all Special Leave Petitions.

(2.) In this batch of civil appeals, writ petition and transferred case, a common question of law arises as to whether the industries which manufacture sugar from sugar cane are covered by Entry 15 of Schedule I to the Water (Prevention and Control of Pollution) Cess Act, 1977 (Central Act 36 of 1977) (hereinafter called the 'Cess Act').

(3.) Originally the Water (Prevention and Control of Pollution) Act, 1974 (hereinafter called the Act) was enacted by the Parliament under Article 252 of the Constitution with a view to control the pollution of rivers and streams which has assumed considerable importance and urgency in recent years as a result of. increasing industrialisation and urbanisation. The Act is intended to ensure that the domestic and industrial affluence are not allowed to be discharged into water coarses without adequate treatment. This Act is now in force in almost all States and in all Union Territories. The Act provides for the constitution of a Central Board by the Central Government and State Boards by the State Governments concerned for the prevention and control of water pollution. There are also certain provisions relating to constitution of joint Boards the details of which need not detain us. The Act sets out in detail the functions and powers of these Boards. Chapter VI of the Act requires the Central Government and the State Governments to provide funds to the Central Board and the State Boards respectively for implementing the provisions of the Act. The Cess Act 36 of 1977 provides for levy of cess on water consumed by persons carrying on certain industries and by the local authorities with a view to augment the resources of the Central Board and the State Boards constituted for the prevention and control of water pollution. Section 3 of the Cess Act which may be termed as the charging section states that "there shall be levied and collected a cess for the purposes of the Water (Prevention and Control of Pollution) Act, 1974 and utilisation thereunder". The cess is payable by every person carrying on any specified industry and every local authority and is calculated on the basis of water consumed by such person or local authority as the case may be for any of the purposes specified in column 1 of Schedule 11 to the Act, at such rate not exceeding the rates specified in the corresponding Entry in column 11 thereof as the Central Government may by notification in the Official Gazette from time to time specify. "Specified industry" is defined in the Act as meaning any industry specified in Schedule I. There are 1 5 entries in Schedule 1 and they read as follows: