WATER (PREVENTION AND CONTROL OF POLLUTION) CESS ACT 1977
EmailTHE WATER (PREVENTION AND CONTROL OF POLLUTION) CESS ACT, 1977
ACT No. 36 OF 1977
7th December, 1977
An Act to provide for the levy and collection of a cess on waterconsumed by persons carrying on certain industries and by local authorities,with a view to augment the resources of the Central Board and the State Boardsfor the prevention and control of water pollution constituted under the Water(Prevention and Control of Pollution) Act, 1974
BE it enacted by Parliament inthe Twenty–eighth Year of the Republicof India as follows: –
1.Short title, extent,application and commencement: (1) This Act may be called the Water (Prevention and Control ofPollution) Cess Act, 1977.
(2) It extends to the whole of India except the State of Jammu and Kashmir.
(3) Subject to the provisionsof 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 theUnion territories.
(4) It shall come into force onsuch date as the Central Government may, by notification in the OfficialGazette, appoint.
2.Definitions: In this Act, unless thecontext 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 the duty of supplyingwater under the law by or under which it is constituted;
(b) "prescribed"means prescribed by rules made under this Act;
(c) "specifiedauthority" means any industry specified in Schedule I;
(d) words and expression usedbut not defined in this Act and defined in the Water (Prevention and Control ofPollution) Act, 1974 (6 of 1974) shall have the meanings respectively assignedto them in that Act.
3.Levy and collection of cess: (1) There shall be levied andcollected a cess for the purposes of the Water (Prevention and Control ofPollution) Act, 1974 (6 of 1974) and utilisation thereunder.
(2) The cess under sub–section(1) shall be payable by –
(a) every person carrying onany specified industry; and
(b) every local authority,
and shall be calculated on thebasis of the water consumed by such person or local authority, as the case maybe, for any of the purposes specified in column (1) of Schedule II, at suchrate, not exceeding the rate specified in the corresponding entry in column (2)thereof, as the Central Government may, by notification in the OfficialGazette, from time to time, specify.
1 [(2A) Where any person carrying on any specified industry or anylocal authority consuming water for domestic purpose liable to pay cess failsto comply with any of the provisions of section 25 of the Water (Prevention andControl of Pollution) Act, 1974 (6 of 1974) or any of the standards laid downby the Central Government under the Environment (Protection) Act, 1986 (29 of1986), cess shall be, notwithstanding anything contained in sub–section(2) of this section, calculated and payable at such rate, not exceeding therate specified in column (3) of Schedule II, as the Central Government may, bynotification in the Official Gazette, from time to time, specify.]
(3) Where any local authoritysupplies water to any person carrying on any specified industry or to any localauthority and such person or other local authority is liable to pay cess 2 [under sub–section (2) or sub–section (2A)] inrespect of the water so supplied, then, notwithstanding anything contained insub–section, the local authority first mentioned shall not be liable topay such cess in respect of such water.
Explanation: For thepurposes of this section and section 4, "consumption of water"includes supply of water.
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1. Sub-section (2A) inserted bythe Water (Prevention and Control of Pollution) Cess (Amendment) Act, 1991 (53of 1991) Section 2 (a) (w. e. f. 26-1-1992).
2. Substituted for the words,figures, and brackets "under sub–section (2)" by the Water(Prevention and Control of Pollution) Cess (Amendment) Act, 1991 (53 of 1991)Section 2 (b) (w. e. f. 26-1-1992).
4.Affixing of meters:(1) For the purpose ofmeasuring and recording the quantity of water consumed, every person carryingon any specified industry and every local authority shall affix meters of suchstandards and at such places as may be prescribed and it shall be presumed thatthe quantity indicated by the meter has been consumed by such person or localauthority, as the case may be, until the contrary is proved.
(2) Where any person or localauthority fails to affix any meter as required by sub–section (1), theCentral Government shall, after notice to such person or local authority, asthe case may be, cause such meter to be affixed and the cost of such metertogether with the cost for affixing the meter may be recovered form such personor local authority by the Central Government in the same manner as an arrear ofland revenue.
5.Furnishing of returns: 1 [(1)] Every person carrying on any specified industry and everylocal authority, liable to pay the cess under section 3, shall furnish suchreturns, in such form, at such intervals and containing such particulars tosuch officer or authority, as may be prescribed.
1 [(2) If a person carrying on any specified industry or a localauthority, liable to pay the cess under section 3, fails to furnish any return under sub–section (1), the officeror the authority shall give a notice requiring such person or local authorityto furnish such return before such date as may be specified in the notice.]
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1. Section (5) numbered assub-section (1) and sub-section (2) inserted by the Water (Prevention andControl of Pollution) Cess (Amendment) Act, 1991 (53 of 1991) Section 3 (w. e.f. 26-1-1992).
6.Assessment of cess:(1) The officer or authority towhom or which the return has been furnished under section 5 shall, after makingor causing to be made such inquiry as he or it thinks fit and after satisfyinghimself or itself that the particulars stated in the return are correct, byorder, assess the amount of cess payable by the concerned person carrying onany specified industry or local authority, as the case may be.
1 [(1A) If the return has not been furnished to the officer orauthority under sub–section (2) of section 5, he or it shall, aftermaking or causing to be made such inquiry as he or it thinks fit, by order,assess the amount of cess payable by the concerned person carrying on anyspecified industry or local authority, as the case may be.";
(b) in sub–section (2),after the words, brackets and figure "under sub–section (1)",the words, brackets, figure and letter "or sub–section (1A)"shall be inserted;
(c) in sub–section (3),after the words, brackets and figure "under sub–section (1)",the words, brackets, figure and letter" or sub–section (1A)"shall be inserted.]
(2) An order of assessment madeunder sub–section (1) shall specify the date within which the cess shallbe paid to the State Government.
(3) A copy each of the order ofassessment made under sub–section (1) shall be sent to the person or, asthe 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 thisbehalf by notification in the Official Gazette, collect the cess from theperson or local authority liable to pay the same and pay the amount socollected to the Central Government in such manner and within such time as maybe prescribed.
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1. Sub-section (1A) inserted bythe Water (Prevention and Control of Pollution) Cess (Amendment) Act, 1991 (53of 1991) Section 4 (w. e. f. 26-1-1992).
7.Rebate: Where any person or localauthority, liable to pay the cess under this Act, installs any plant for thetreatment of sewage or trade effluent, such person or local authority shall,from such date as may be prescribed, be entitled to a rebate of 1[twenty–five percent] of the cess payable by such personor, as the case may be, local authority.
2 [Provided that a person or local authority shall not be entitledto any rebate, if he or it–
(a) consumes water in excess ofthe maximum quantity as may be prescribed in this behalf for any specifiedindustry or local authority; or
(b) fails to comply with any ofthe provisions of section 25 of the Water (Prevention and Control of Pollution)Act, 1974 (6 of 1974) or any of the standards laid down by the CentralGovernment under the Environment (Protection) Act, 1986 (29 of 1986).]
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1. Substituted for the words"seventy percent" by the Water (Prevention and Control of Pollution)Cess (Amendment) Act, 1991 (53 of 1991) Section 5 (a) (w. e. f. 26-1-1992).
2. Inserted by the Water(Prevention and Control of Pollution) Cess (Amendment) Act, 1991 (53 of 1991)Section 5 (b) (w. e. f. 26-1-1992).
8.Crediting proceeds of cess toConsolidated Fund of India and application thereof: The proceeds of the cess levied under section 3shall first be credited to the Consolidated Fund of India and the CentralGovernment may, if Parliament, by appropriation made by law in this behalf, soprovides, pay to the Central Board and every State Board, from time to time,from out of such proceeds, after deducting the expenses on collection, suchsums 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 determiningthe sum of money to be paid to any State Board under this section, the CentralGovernment shall have regard to the amount of cess collected by the StateGovernment concerned under sub–section (4) of section 6.
Explanation: For thepurposes of this section, "State Board" includes a Joint Board, ifany, constituted under section 13 of the Water (Prevention and Control ofPollution) Act, 1974 (6 of 1974).
9.Power of entry: Any officer or authority ofthe State Government specially empowered in this behalf by that Government may,–
(a) with such assistance, ifany, as he or it may think fit, enter at any reasonable time any place which heor it considers it necessary to enter for carrying out the purposes of this Actincluding the testing of the correctness of the meters affixed under section 4;
(b) do within such placeanything necessary for the proper discharge of his or its duties under thisAct; and
(c) exercise such other powersas may be prescribed.
10.Interest payable for delayin payment of cess: If any person carrying on any specified industry or any localauthority fails to pay any amount of cess payable under section 3 to the StateGovernment within the date specified in the order of assessment made undersection 6, such person or local authority, as the case may be, shall be liableto pay 1 [interest on the amount to be paid at the rate oftwo percent for every month or part of a month comprised in the period from thelate on which such payment is due till such amount is actually paid.]
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1. Substituted for the words"interest at twelve percent per annum on the amount to be paid fromthe date on which such payment is due till such amount is actually paid"by the Water (Prevention and Control of Pollution) Cess (Amendment) Act, 1991(53 of 1991) Section 6 (w. e. f. 26-1-1992).
11.Penalty for non-payment ofcess within the specified time: If any amount of cess payable by any person carrying on anyspecified industry or any local authority under section 3 is not paid by theState Government within the date specified in the order of assessment madeunder section 6, it shall be deemed to be in arrears and the authorityprescribed in this behalf may, after such inquiry as it deems fit, impose onsuch person or, as the case may be, local authority, a penalty not exceedingthe amount of cess in arrears:
Provided that before imposingany such penalty, such person or, as the case may be, the local authority shallbe given a reasonable opportunity of being heard and if after such hearing thesaid authority is satisfied that the default was for any good and sufficientreason, no penalty shall be imposed under this section.
12.Recovery of amount due underthe Act: Any amount due under this Act(including any interest or penalty payable under section 10 or section 11, asthe case may be) from any person carrying on any specified industry or from anylocal authority may be recovered by the Central Government in the same manneras an arrear of land revenue.
13.Appeals: (1) Any person or localauthority aggrieved by an order of assessment made under section 6 or by anorder imposing penalty made under section 11 may, within such time as may beprescribed, appeal to such authority in such form and in such manner as may be prescribed.
(2) Every appeal preferredunder sub–section (1) shall be accompanied by such fees as may beprescribed.
(3) After the receipt of anappeal under sub–section (1), the appellate authority shall, aftergiving the appellant an opportunity of being heard in the matter, dispose ofthe appeal as expeditiously as possible.
(4) Every order passed inappeal under this section shall be final and shall not be called in question inany court of law.
14.Penalty:(1) Whoever, being under anobligation to furnish to return under this Act, furnishes any return knowing,or having reason to believe, the same to be false shall be punishable withimprisonment which may extend to six months or with fine which may extend toone thousand rupees or with both.
(2) Whoever, being liable topay cess under this Act, wilfully or intentionally evades or attempts to evadethe payment of such cess shall be punishable with imprisonment which may extendto six months or with fine which may extend to one thousand rupees or with both.
(3) No court shall takecognizance of an offence punishable under this section save on a complaint madeby or under the authority of the Central Government.
15.Offences of companies: (1) Where an offence under thisAct has been committed by a company, every person who, at the time the offencewas committed, was in charge of, and was responsible to, the company for theconduct of the business of the company, as well as the company, shall be deemedto be guilty of the offence and shall be liable to be proceeded against andpunished accordingly.
Provided that nothing containedin this sub–section shall render any such person liable to anypunishment, if he proves that the offence was committed without his knowledgeor that he exercised all due diligence to prevent the commission of suchoffence.
(2) Notwithstanding anythingcontained in sub–section (1), where an offence under this Act has beencommitted by a company and it is proved that the offence has been committedwith the consent or connivance of, or is attributable to any neglect on thepart of, any director, manager, secretary or other officer of the company, suchdirector, manager, secretary or other officer shall also be deemed to be guiltyof that offence and shall be liable to be proceeded against and punishedaccordingly.
Explanation: For thepurposes of this section, –
(a) "company" meansany body corporate and include a firm or other association of individuals; and
(b) "director", inrelation 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 Schedule I any industry havingregard to the consumption of water in the carrying on of such industry and theconsequent discharge thereof resulting in pollution of any stream and thereuponSchedule I shall, subject to the provisions of sub–section (2), bedeemed to be amended accordingly.
(2) Every such notificationshall be laid before each House of Parliament, if it is sitting, as soon as maybe after the issue of the notification, and if it is not sitting, within sevendays of its re–assembly and the Central Government shall seek theapproval of Parliament to the notification by a resolution moved within aperiod of fifteen days beginning with the day on which the notification is solaid before the House of People, and if Parliament makes any modification inthe notification or directs that the notification should cease to have effect,the notification shall thereafter have effect only in such modified form or beof no effect, as the case may be, but without prejudice to the validity ofanything previously done thereunder.
17.Power to make rules:(1) The Central Government maymake rules for carrying out the purposes of this Act.
(2) Without prejudice to thegenerality of the foregoing power, such rules may provide for all or any of thefollowing matters, namely: –
(a) the standards of the metersto be affixed and the places at which such meters are to be affixed under sub–section(1) of section 4;
(b) the returns to be furnishedunder section 5, the form in which and the intervals at which such returns areto be furnished, the particulars which such returns shall contain and theofficer or authority to whom or which such returns shall be furnished;
(c) the manner in which and thetime within which the cess collected shall be paid to the Central Governmentunder sub–section (4) of section 6;
(d) the date from which anyperson or local authority liable to pay cess shall be entitled to the rebate 1 [and the maximum quantity of water in excess of consumptionwhereof any person or local authority shall not be entitled to the rebate]under section 7;
(e) the powers which may beexercised by the officer or authority under section 9;
(f) the authority which mayimpose penalty under section 11;
(g) the authority to which anappeal may be filed under sub–section (1) of section 13 and the timewithin which and the form and manner in which such appeal may be filed;
(h) the fees which shallaccompany an appeal under sub–section (2) of section 13; and
(i) any other matter which hasto be or may be prescribed.
(3) Every rule made under thisAct shall be laid, as soon a may be after it is made, before each House ofParliament while it is in session for a total period of thirty days which maybe comprised in one session or in two or more successive sessions and if,before the expiry of the session immediately following the session or thesuccessive sessions aforesaid, both Houses agree in making any modification inthe rule or both Houses agree that the rule should not be made, the rule shallthereafter have effect only in such modified form or be of no effect, as thecase may be; so, however, that any such modification or annulment shall bewithout prejudice to the validity of anything previously done under that rule.
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1. Inserted by the Water(Prevention and Control of Pollution) Cess (Amendment) Act, 1991 (53 of 1991)Section 7 (w. e. f. 26-1-1992).
SCHEDULE I
[Seesection 2 (c)]
1. Ferrous metallurgicalindustry.
2. Non–ferrousmetallurgical industry.
3. Mining industry.
4. Ore processing industry.
5. Petroleum industry.
6. Petro–chemicalindustry.
7. Chemical industry.
8. Ceramic industry.
9. Cement industry.
10. Textile industry.
11. Paper industry.
12. Fertilizer industry.
13. Coal (including coke)industry.
14. Power (thermal and diesel)generating industry.
15. Processing of animal orvegetable products industry.
1 [SCHEDULEII
(Seesection 3)
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Purpose forwhich water Maximumrate under Maximumrate under
is consumed sub–section(2) of Sub–section(2A) of
section(3) section3
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(1) (2) (3)
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1.Industrialcooling, spraying Oneand a half paise Twoand one–fourth paise
in mine pits orboiler feeds perkilo litre perkilo litre.
2.Domesticpurpose Twopaise Threepaise
perkilo litre perkilo litre.
3.Processingwhereby water Fourpaise Sevenand a half paise
gets pollutedand the perkilo litre perkilo litre.
pollutants areeasily
bio–degradable
4.Processingwhereby water Fivepaise Nineand a half paise
gets pollutedand the perkilo litre perkilo litre.]
pollutants arenot easily
bio-degradableand are toxic
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1. Substituted for the originalSchedule II by the Water (Prevention and Control of Pollution) Cess (Amendment)Act, 1991 (53 of 1991) Section 8 (w. e. f. 26-1-1992).
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