Case Note & Summary
The petitioner, United Breweries Limited, filed a writ petition under Article 226 of the Constitution of India challenging demand notices, water bills, and penal charges demanded by the Maharashtra Industrial Development Corporation (MIDC) based on a Circular dated 7th October 2011. The petitioner sought a direction to charge higher water rates only for 17% of the water consumed (used as raw material) and to charge the remaining water at rates applicable for industrial purposes. The court referred to a previous Division Bench decision in Waluj Industries Association & Ors. vs. The State of Maharashtra (Writ Petition No.4263/2005), which held that a distinction must be made between water used as raw material for manufacturing and water used for allied activities. The court declined to quash the notices but directed MIDC to levy water charges at revised rates, but only for the portion of water used as raw material for manufacturing liquor, beverages, etc., and to charge normal rates for water used for allied activities. The petition was disposed of with directions to MIDC to make the distinction and charge accordingly.
Headnote
A) Water Charges - Levy of Water Charges - Distinction between water used as raw material and water used for allied activities - Maharashtra Industrial Development Corporation Act, 1961 - The court held that MIDC cannot levy uniform higher water charges on industrial units without distinguishing between water used as raw material for manufacturing and water used for allied activities. The industrial units must pay higher rates only for water used as raw material, and normal rates for water used for allied activities. (Paras 3-4)
Issue of Consideration
Whether the Maharashtra Industrial Development Corporation (MIDC) can levy uniform higher water charges on industrial units without distinguishing between water used as raw material for manufacturing and water used for allied activities.
Final Decision
The court declined to quash the notices but directed MIDC to levy water charges at revised rates only for the portion of water used as raw material for manufacturing liquor, beverages, etc., and to charge normal rates for water used for allied activities. The petition was disposed of with these directions.
Law Points
- Water charges must be levied based on actual usage
- distinguishing between water used as raw material and water used for allied activities
- MIDC cannot charge uniform higher rates for entire water supply
Case Details
Writ Petition No.2683 of 2012
A.M. Khanwilkar, P.D. Kode
S.S. Pakale with Avinash R. Belge for Petitioner, Molina P. Thakur (AGP) for Respondent No.1, Deepa Chavan with Kiran Gandhi & Shyamali Gadre i/b Little & Co. for Respondent Nos.2 to 6
State of Maharashtra, Maharashtra Industrial Development Corporation, Chief Engineer (Head Office) MIDC, Executive Engineer MIDC Dombivali, Divisional Executive Engineer MIDC Taloja, Deputy Engineer MIDC Thane
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Nature of Litigation
Writ petition under Article 226 challenging demand notices and water bills by MIDC.
Remedy Sought
Petitioner sought quashing of demand notices and direction to charge higher water rate only for 17% of water consumed and remaining at industrial rates.
Filing Reason
MIDC levied uniform higher water charges on the petitioner without distinguishing between water used as raw material and water used for allied activities.
Previous Decisions
Division Bench in Waluj Industries Association & Ors. vs. The State of Maharashtra (Writ Petition No.4263/2005) held that distinction must be made.
Issues
Whether MIDC can levy uniform higher water charges on industrial units without distinguishing between water used as raw material and water used for allied activities.
Submissions/Arguments
Petitioner argued that water used for allied activities should be charged at normal rates, not higher rates.
Respondents argued that they are entitled to levy uniform higher rates.
Ratio Decidendi
MIDC must distinguish between water used as raw material and water used for allied activities when levying water charges; higher rates can only be charged for water used as raw material.
Judgment Excerpts
A distinction has to be made in respect of user of water by the concerned industrial establishment as a raw material for manufacturing finished product as well as user of water by the industrial units for allied activities.
The Corporation cannot be permitted to recover water charges at higher rates treating use of water supplied to the concerned industrial units in its entirety as user of water as a raw material.
Procedural History
The petitioner filed Writ Petition No.2683 of 2012 before the Bombay High Court challenging demand notices and water bills. The court heard counsel and disposed of the petition with directions based on a previous Division Bench decision.
Acts & Sections
- Constitution of India: Article 226
- Maharashtra Industrial Development Corporation Act, 1961:
