THE WATER (PREVENTION AND CONTROL OF POLLUTION) CESS ACT, 1977

CONTENTS

1. Short title, extent, application and commencement

2. Definitions

3. Levy and collection of cess

4. Affixing of meters

5. Furnishing of returns

6. Assessment of cess

7. Rebate

8. Crediting proceeds of cess to Consolidated Fund of India and application thereof

9. Power of entry

10. Interest payable for delay in payment of cess

11. Penalty for non-payment of cess within the specified time

12. Recovery of amount due under the Act

13. Appeals

14. Penalty

15. Offences by companies

16. Power to amend Schedule I

17. Power to make rules

Schedule I

Schedule II

Notification

THE WATER (PREVENTION AND CONTROL OF POLLUTION) CESS ACT, 19771

(ACT NO. 36 OF 1977)

[7th December, 1977]

An Act to provide for the levy and collection of a cess on water consumed by persons carrying on certain industries and by local authorities, with a view to augment the resources of the Central Board and the State Boards for the prevention and control of water pollution constituted under the Water (Prevention and Control of Pollution) Act, 1974.

BE it enacted by Parliament in the Twenty-eighth Year of the Republic of India as follows:

1. Received the assent of the President on 7th December, 1977, published in Gazette of India, Extraordinary, Pt. II, Sec. 1, dated 7th December, 1977.

1. Short title, extent, application and commencement.-

(l) This Act may be called be Water (Prevention and Control of Pollution) Cess Act, 1977.

(2) It extends to the whole of India except the State of Jammu and Kashmir.

(3) Subject to the provisions of sub-section (2), it applies to all the States to which the Water (Prevention and Control of Pollution) Act, 1974 (6 of 1974), applies and the Union territories.

(4) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, 1 appoint.

1. W.e.f 26.1.1992 vide S.O 78 (E) dt, 26.11992 published in Gazette of India (E) Part II 3(ii).

2. Definitions. -In this Act, unless the context otherwise requires, -

(a) “Local authority” means a municipal corporation or a municipal council (by whatever name called) or a cantonment board or any other body, entrusted with thirty of supplying the water under the law by or under which it is constitutes;

(b) “Prescribed” means prescribed by rules made under this Act;

(c) “Specified industry” means any industry specified in Schedule I,

(d) Words and expressions used but not defined in this Act and defined in the Water (Prevention and Control of Pollution) Act, 1974 (6 of 1974), shall have the meanings respectively assigned to them in that Act.

3. Levy and collection of cess.-

(1) There shall be levied and collected a cess for the purpose of the Water (Prevention and Control of Pollution) Act, 1974 (6 of 1974), and utilization thereunder.

(2) The cess under subsection (1) shall be payable by-

(a) Every person carrying on any specified industry; and

(b) Every local authority,

And shall be calculated on the basis o the water consumed by such person or local authority, as the case may be, for any of the purpose specified in column (1) of Schedule II, at such rate, not exceeding the rate specified in the corresponding entry in column (2) thereof as the Central Government may, by notification in the Official Gazette, from time to time, specify.

1[(2A) Where any person carrying on any specified industry or any local authority consuming water for domestic' purpose liable to pay cess fails to comply with any of the provisions of Sec. 25 of the Water (Prevention and Control of Pollution) Act, 1974 (6 of 1974) or any of the standards laid down by the Central Government under the Environment (Protection) Act, 1986 (29 of 1986), cess shall be, notwithstanding, anything contained in sub-section (2) of this section, calculated and payable at such rate, not exceeding the rate specified in column (3) of Schedule II, as the Central Government may, by notification in the Official Gazette, 'from time to time, specify].

(3) Where any local authority supplies water to any person carrying on any specified industry or to any other local authority and such person or other local authority is liable to pay cess (2) under sub-section (2) or subsection (2A)] in respect of the water so supplied, then, notwithstanding anything contained in those subsections the local authority first mentioned shall not be liable to pay such cess in respect of such water.

Explanation. -For the purpose of this section and Sec. 4, “consumption of water” includes supply of water.

1. Ins. by, Act 53 of 1991, Sec. 2 (w.e.f. 26th January, 1992).

4. Affixing of meters. -

(1) For the purpose of measuring and recording the quantity of water consumed, every person carrying on any specified industry and every local authority shall affix meters of such standards and at such places as may be prescribed and it shall be presumed that the quantity indicated by the meter has been consumed by such person or local authority, as the case may be, until the contrary is proved.

(2) Where any person or local authority fails to affix any meter as required by sub-section (1), the Central Government shall, after notice to such person or local authority, as the case mail be, cause such meter to be affixed and the cost of such meter, together with the Cost for affixing the meter may be recovered from such person or local authority by the Central Government in the same manner as an arrear of land revenue.

5. Furnishing of returns. -

1[(1) Every person carrying on any specified industry and every local authority, liable to pay the cess under Sec. 3, shall furnish such returns, in such form, at such intervals and containing such particulars to such Officer or authority, as may be prescribed.

2[(2) If a person carrying on any specified industry or a local authority, liable to pay the cess under Sec. 3, fails to furnish any return under subsection (1), the officer or the authority shall give a notice requiring such person or local authority to such return before such date as may be specified in the notice.]

1. Renumbered by Act No. 53 of 1991, S.3 w.e.f. 26.11992.

2. Ins, by Act No. 53 of 1991, S.3 w.e.f 26.1.1992.

6. Assessment of cess. -

(l) The officer or authority to whom or which the return has been furnished under Sec. 5 shall, after making or causing to be made such inquiry as lie or it thinks fit and after satisfying himself or itself that the particulars stated in the return, are correct, by order, assess the amount of cess payable by the concerned person carrying on any specified industry or local authority, as the case may be.

1[(lA) If the return has not been furnished to the officer or authority under subsection (2) of Sec. 5, he or it shall, after making or causing to be made such inquiry as lie or it thinks fit, by order, assess the amount of cess payable by the concerned person carrying on any specified industry or local authority, as the case may be.]

(2) An order of assessment made under subsection (1) or sub-section (IA) shall specify the date within which the cess shall be paid to the State Government.

(3) A copy each of the order of assessment made under sub-section (1) or sub-section (lA) shall be sent to the person or, as the case may be, to the local authority concerned and to the State Government.

(4) The State Government shall, through such of its officers or authorities as may be specified by it in this behalf by notification in the Official Gazette collect the cess from the person or local authority liable to pay the same and pay the amount so collected to the Central Government in such manner and within such time as may be prescribed.

1. Ins. by Act 53 of 1991 Sec. 4,

7. Rebate. -Where any person or local authority, liable to pay the cess under this Act, installs any plant for the treatment of sewage or trade effluent, such person or local authority shall, from such date as may be prescribed be entitled to a rebate of twenty five per cent of the cess payable by stich person or, as the case may, be, local authority:

1[Provided that a person or, local authority shall not be entitled to any rebate, if he or it-

(a) Consumes water in excess of the maximum quantity as may be prescribed in this belu7lf for any specified industry or local authority; or

(b) Fails to comply with any of the provisions of Sec. 25 of the Water (Prevention and Control of Pollution) Act, 1974 (6 of 1974) or any of the standards laid down by the Central Government under the Environment (Protection) Act, 1986 (29 of -1986).]

1. Ins. by Act 53 of 1991 Sec. 5, (w.e.f. 26th January, 1992).

8. Crediting proceeds of cess to Consolidated Fund of India and application thereof. -The proceeds of the cess levied under Sec. 3 shall first be credited to the Consolidated Fund of India and the Central Government may, if Parliament by appropriation made by law in this behalf, so provides, pay to the Central Board and every State Board, from time to time, from out of such proceeds, after, deducting the expenses on collection, such sums of money as it may think fit for being utilised under the Water (Prevention and Control of Pollution) Act, 1974 (6 of 1974):

Provided that while determining the stint of money to be paid to any State Board under this section, the Central Government shall have regard to the amount of cess collected by the State Government concerned under subsection (4) of See 6.

Explanation. -For the purpose of this section, “State Board” includes a joint Board, if any, constituted under Sec. 13 of the Water (Prevention and Control of Pollution) Act, 1974 (6 of 1974).

9. Power of en try. -Any officer or authority of the State Government specially empowered in this behalf by that Government may, -

(a) With such assistance, if any, as he or it may think fit, enter at any reasonable time any place which he or it considers it necessary to enter for carrying out the purposes of this Act including the testing of the correctness of the meters affixed under Sec. 4;

(b) Do within such place anything necessary for the proper discharge of his or its ditties under this Act; and

(c) Exercise such other powers as may be prescribed.

10. Interest payable for delay in payment of cess. -If any person carrying on any specified industry or any local authority fails to pay any amount of cess payable under Sec. 3 to the State Government within the date specified in the order of assessment made under Sec. 6, such person or local authority, as the case may be, shall be liable to pay 1[interest on the amount to be paid at the rate of two per cent, for every month or part of a month comprised in the period from the date on which such payment is due in such amount is actually paid.]

1. Subs. by Act 53 of 1991, Sec. 6 (w.e.f. 26th January, 1992).

11. Penalty for non-payment of cess within the specified time. -If any amount of cess payable by any person carrying on any specified-industry or any local authority under Sec. 3 is not paid to the State Government within the date specified in the order of assessment made under Sec. 6, it shall be deemed to be in arrears and the authority prescribed in this behalf may after such inquiry as it deems fit, impose on such person or, as the case may be, local authority, a penalty not exceeding the amount of cess in arrears:

Provided that before imposing any such penalty, such person or, as the case may be the local authority shall be given a reasonable opportunity of being heard and if after such hearing the said authority is satisfied that the default was for any good and sufficient reason, no penalty shall be imposed under this section.

12. Recovery of amount due under the Act. -Any amount due under this Act (including any interest or penalty payable under Sec. 10 or Sec. 11, as the case may be) from any person carrying on any specified industry or from any local authority may be recovered by the Central Government in the same manner as an arrear of land revenue.

13. Appeals. -

(1) Any person or local authority aggrieved by an order of assessment made under Sec. 6 or by an order imposing penalty made under Sec. 11 may, within such time as may be prescribed, appeal to such authority in such form and in such manner as may be prescribed.

(2) Every appeal preferred under subsection (1) shall be accompanied by such fees as may be prescribed.

(3) After the receipt of an appeal under subsection (1), the appellate authority shall, after giving the appellant an opportunity of being heard in the matter, dispose of the appeal as expeditiously as possible.

(4) Every order passed in appeal under this section shall be final and shall not be called in question in any court of law.

14. Penalty. -

(l) Whoever, being under an obligation to furnish a return under this Act, furnishes any return knowing, or having reason to believe, the same to be false shall be punishable with imprisonment which may extend to six months or with fine which may extend to one thousand rupees or with both.

(2) Whoever, being liable to pay cess under this Act, wilfully or intentionally evades or attempts to evade the payment of such cess shall be punishable with imprisonment which may extend to six months or with fine which may extend to one thousand rupees or with both.

(3) No Court shall take cognizance of an offence punishable under this section save on a complaint made by or the authority of the Central Government.

15. Offences by companies. -

(1) Where an offence under this Act has been committed by a company, every person who at the time the offence was committed, was in charge of, and was responsible, to the company for the conduct of the business of the company, as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly:

Provided that nothing contained in this subsection shall render any such person liable to any punishment, if he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence.

(2) Notwithstanding anything contained in subsection (1), where an offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to any neglect on the part of, any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly.

Explanation. -For the purpose of this section,-

(a) “Company” means any body corporate and includes a firm or other association of individuals; and

(b) “Director”, in relation to a firm, means a partner in the firm.

16. Power to amend Schedule I. -

(1) The Central Government may, by notification in the Official Gazette, add to Sch. I any industry having regard to the consumption of water in the carrying on of such industry and the consequent discharge thereof resulting in pollution of any stream and thereupon Sch. I shall, subject to the provisions of subsection (2), be deemed to be amended accordingly.

(2) Every such notification shall be laid before each House Parliament, if it is sitting, as soon as may be after the issue of the notification, and of it is not sitting, within seven days of its reassembly and the Central Government shall seek the approval of Parliament to the notification by a resolution moved within a period of fifteen days beginning with the day on which the notification is so laid before the House of the People, and if Parliament makes any modification in the notification or directs that the notification should cease to have effect, the notification shall thereafter leave effect only in such modified form or be of no effect, as the case may be, but without prejudice to the validity of anything previously done thereunder.

17. Power to make rules. -

(1) The Central Government may make rules for carrying out the purposes of this Act.

(2) Without prejudice to the generality of the foregoing power, such rules may, Provide for all or any of the following matters, namely: -

(a) The standards of the meters to be affixed and the places at which such meters are to be affixed under subjection (1) of Sec. 4;

(b) The returns to be furnished under Sec. 5, the form in which and the intervals at which such returns are to be furnished, the particulars which such returns shall contain and the officer or authority to whom or which such returns shall be furnished;

(c) The manner in which and the time within which the cess collected shall be paid to the Central Government under sub-section (4) of Sec. 6;

(d) The date from which any person or local authority liable to pay cess shall be entitled to the rebate 1[and the maximum quantity of water in excess of consumption whereof any person or local authority shall not be entitled to the rebate] under Sec. 7;

(e) The powers which may be exercised by the Officer or authority under Sec. 9;

(f) The authority which may impose penalty under Sec. 11;

(g) The authority to which an appeal may be filed under sub-section (1) of Sec. 13 and the time within which and the form and manner in which such appeal may befiled;

(h) The fees which shall accompany an appeal under subsection (2) of Sec 13 ; and

(i) Any other matter which has to be or may be prescribed.

(3) Every rule made under this Act shall be laid, as soon as may be after it is made, before each House of Parliament while it is in session for a total period of thirty days which may be comprised in one session or in two successive sessions and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule.

1. Ins. by Act 53 of 1991, Sec. 7 (w.e.f. 26th January, 1992).

SCHEDULE I

[See Sec. 2 (c)]

1. Ferrous metallurgical industry.

2. Non-ferrous metallurgical industry.

3. Mining Industry.

4. Ore processing industry.

5. Petroleum industry.

6. Petro-chemical industry.

7. Chemical industry.

8. Ceramic industry.

9. Cement industry.

10. Textile industry 1[including cotton, synthetic and semi-synthetic fibres manufactured from these fibres.)

11. Paper industry.

12. Fertilizer industry.

13. Coal (including coke) industry.

2[14. Power (thermal, diesel) and Hydel) generating industries,

15. Processing of animal or vegetable products industry 3[including processing of milk, meat, hides and skins, all agricultural products and their wastes].

416. Engineering industry.]

1. Added by G.S.R. 14(E), dated 2nd January, 1992, published in the Gazette of India, Extraordinary, Pt. II, Sec. 3 (i), dated 2nd January, 1992.

2. Subs. by G.S.R. 377 (E), dated 16th April, 1993, published in the Gazette of India, Extraordinary, Pt. II, Sec. 3 (i), dated 16th April, 1993.

3. Added by G.S.R. 14(E), dated 2nd January, 1992, published in the Gazette of India Extraordinary, Pt. II. Sec. 3 (i), dated 2nd January, 1992.

4. Added by G.S.R. 377(E), dated 16th April, 1993, published in the Gazette of India, Extraordinary, Pt. II, Sec. 3 (i), dated 16th April, 1993.

1[SCHEDULE II

(See Sec. 3)

TABLE

1. Subs. by Act 53 of l991, Sec.8 (w.e.f. 26th January, 1992); see also S.0.182 (E) dated 28th February, 1992, published in the Gazette of India, Extraordinary, Pt. II, Sec. 3 (ii), dated 5th March, 1992.

Purpose for which water is consumed | Maximum rate under sub-section (2) of sec.3| Maximum rate under sub-section (2-A) of sec. 3

1 | 2 | 3

1. Industrial cooling, spraying in mine pits or boiler feeds One and a half paise perkilolitre

Two and one-fourth paise per kilolitre

2. Domestic purpose.

Two paise per kilolitre

Three paise per kilolitre

3. Processing whereby water gets polluted and the pollutants are easily biodegradable and are toxic,

Four paise per kilolitre

Seven and a half paise per kilolitre

4. Processing whereby water gets polluted and the pollutants are not easily biodegradable and are toxic.
Five paise per kilolitre

Nine and a half paise per kilolitre]

NOTIFICATIONS

G.S.R. 190, dated 16th January, 1980.- In exercise of the powers conferred by Cl. (1) of Art. 258 of the Constitution, the President, with the consent of the State Governments concerned hereby entrusts to the governments of each of the States of Andhra Pradesh, Bihar, Gujarat, Haryana, Himachal Pradesh, Kerala, Madhya Pradesh, Punjab, Rajasthan, Uttar Pradesh and West Bengal, the functions of the Central Government under sub-section (2) of Sec. 4, Sec. 12 and subsection (3) of Sec. 14 of the Water Prevention and Control of Pollution) Cess Act, 1977 (36 of 1977) subject to the conditions that not withstanding this entrustment the Central Government may itself exercise any of the said functions should deem fit to do so in any case.

S.O. 78 (E), dated 26th January, 1992. - In exercise of the powers conferred by sub-section (2) of Sec. 1 of the Water (Prevention and Control of Pollution) Cess (Amendment) Act, 1991 (53 of 1991), the Central Government hereby appoints the 26th day of January, 1992 as the date on which the said Act shall come into force

 

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