M.M. Kumar, J. - (1.) THE instant petition under Article 226 of the Constitution raises a significant issue as to 'whether the Hindu College of Pharmacy, Sonipat is exigible to payment of water cess and whether it would be covered by the expression 'local authority' and 'specified industry' used in Section 2(a) and 2(c) read with Schedule 1 of Section 3 of the Water (Prevention and Control of Pollution) Cess Act, 1977 (for brevity 'the Act'). As per the charging Section 3 of the Act, water cess could be levied on the 'specified industry' or 'local authority'. It is payable by every person carrying on any 'specified industry' or by any 'local authority'. The case of the petitioner is that it is neither covered by the definition of expression 'local authority' or 'specified industry' as envisaged under Section 2(a) and 2(c) read with Schedule 1 of the Act. It is claimed that they are neither 'local authority' nor covered by any 'specified industry being' an educational institution. In response to notice of motion having been issued, the respondent -Board has filed the written statement. It is claimed that the Board has rightly issued letter dated 27.3.1986 to the petitioner requiring it to submit monthly water consumption return as per condition No. 5 of the Act. According to the respondents, the petitioner is covered under Section 2(a) of the Act being 'local authority' and are liable to pay water cess.
(2.) WE have heard learned counsel for the parties at a considerable length and are of the view that this petition deserves to succeed. It would first be appropriate to read the charging Section 3 of the Act which is set out below: Levy and Collection of cess. -(1) There shall be levied and collected cess for the purposes of the Water (Prevention and Control of Pollution) Act, 1974 and utilization thereunder. (2) The cess under sub section (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 of the water consumed by such person or local authority, as the case may be, for any of the purposes 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 (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 under sub section (2) in respect of the water so supplied, then, notwithstanding anything contained in that sub section, the local authority first mentioned shall not be liable to pay such cess in respect of such water. 3. A perusal of the aforesaid provision would make it clear that cess has been levied and is to be collected for the purposes of Water (Prevention and Control of Pollution) Act, 1974 and utilization thereunder. Such water cess is payable by a 'local authority' or any person carrying on any 'specified industry'. The expression 'local authority' and 'specified industry' as used in Section 3 of the Act are defined by sections 2(a) and 2(c) of the Act respectively and the definitions are set out below: 2. Definition. -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 the duty of supplying water under the law by or under which it is constituted. (b)........ (c) 'specified industry' means any industry specified in schedule 1.
(3.) UNDER Section 2(a) of the Act 'local authority' has been defined to mean a municipal corporation, municipal council, cantonment Board or any other body entrusted with the duty of supplying water under the law by or under which it is constituted. The 'local authority' necessarily has to be entrusted with the duty of supplying water under the law. An educational institution like the petitioner has no obligation to supply water by virtue of provision of any law. When we read the expression like municipal council, municipal corporation which are obliged by the municipal laws to supply water to residents of local area then any other such institution could be brought under the definition by the principle of ejusdem generis if it under obligation by law to supply water. It is neither the case pleaded nor even argued. The bald statement that the petitioner is covered by expression 'local authority' is without substance and has not been substantiated at all. Likewise under Section 2(c) of the Act 'specified industry' is the one, which is detailed in schedule 1. According to the Schedule 15 industries have been listed which reads as under: "Schedule 1" [See Section 2(c) ] 1. Ferrous metallurgical industry 2. Non -ferrous metallurgical industry 3. Mining industry 4. Ore processing industry;