COMPENDIUM OF SUMMARIES OF JUDICIAL DECISIONS IN ENVIRONMENT RELATED CASES

INDIA

India - Polluter Pays Principle, Water Cess Act

RAJASTHAN STATE ELECTRICITY BOARD v. THE CESS APPELLATE COMMITTEE & another

WITH

RAJASTHAN STATE ELECTRICITY BOARD v. ASSESSING AUTHORITY, MEMBER SECRETARY, RAJASTHAN BOARD FOR PREVENTION & CONTROL OF POLLUTION

1990 SC 123
S. RANGANATHAN AND A.M.AHMADI, JJ.

Introduction

The Appellant established a thermal power station on the banks of River Chambal, which consumes water drawn from the river for cooling of the plant. The appellant filed an appeal under Section 13 of the Water (Prevention and Control of Pollution) Cess Act 1977 in respect of the cess claimed for a particular period. The appeal was dismissed by the appellate authority holding that the appellant was not entitled to a rebate. Following the dismissal of successive appeals and petitions, the appellant appealed to the Supreme Court challenging the dismissal of the petitions by the Divisional Bench of the Court of Appeal.

Legislative Framework

Water (Prevention and Control of Pollution) Cess Act 1977 Sections 7 and 25(1) and Rule 6.

Held

The Supreme Court remitted the matter to the Assessing Authority for reassessment of the cess and gave further directions which the Authority was required to comply with. The Court said that Section 25(1) has nothing to do with a plant installed for the treatment of effluent, although the grant of consent to a new outlet can be conditional on the existence of a plant for the satisfactory treatment of effluents, to safeguard against pollution of water in the stream.