Case Note & Summary
The dispute arose between the Rajasthan State Electricity Board and the Cess Appellate Committee regarding the assessment of cess under the Water (Prevention and Control of Pollution) Cess Act, 1977. The appellant operated a Thermal Power Station on the bank of River Chambal, consuming water for condenser cooling and treating the resultant trade effluent before discharge. The Assessing Authority assessed the cess at Rs. 13,13,710 and Rs. 9,42,013 for two periods, denying a rebate on the grounds that the neutralisation plant did not qualify as a treatment plant under the Act. The High Court dismissed the appellant's writ petitions, asserting that there was no evidence of consent from the State Board as required under Sections 25 and 26 of the Water (Prevention and Control of Pollution) Act, 1974. The Supreme Court, upon reviewing the case, found that the requirement for consent under Section 25(1) was not a prerequisite for claiming a rebate under Section 7 of the Cess Act. The court noted that the appellant had indeed installed a treatment plant and that the assessment authorities had not adequately considered the operational aspects of the treatment plant. Consequently, the Supreme Court allowed the appeals, remanding the matter to the Assessing Authority for a fresh assessment, while directing the appellant to continue paying a portion of the cess until the matter was resolved.
Headnote
A) Environmental Law - Water Pollution Cess - Consent Requirement - The Water (Prevention and Control of Pollution) Act, 1974, Section 25(1) - The court held that the requirement for prior consent from the State Board under Section 25(1) does not apply to the treatment of trade effluent for rebate purposes under Section 7 of the Water (Prevention and Control of Pollution) Cess Act, 1977. The appellant had installed a treatment plant for trade effluent and was entitled to a rebate despite the absence of consent, as the treatment plant functioned satisfactorily (Paras 130-132).
Issue of Consideration
Whether the appellant was entitled to a rebate on cess for water consumption without prior consent from the State Board under the Water (Prevention & Control of Pollution) Act, 1974.
Final Decision
The Supreme Court allowed the appeals, remanding the matter to the Assessing Authority for fresh disposal, clarifying that the consent under Section 25(1) was not a prerequisite for claiming a rebate under Section 7 of the Cess Act. The appellant was directed to continue paying 30% of the cess amount until the matter was resolved.
Law Points
- Water pollution
- cess assessment
- treatment plant
- consent requirement
- rebate entitlement
