M/S CHAMPARAN SUGAR COMPANY LIMITED Vs. STATE OF BIHAR & ORS.

JUDGEMENT

(1.) These two writ petitions were heard together with the consent of the parties, as they involve common question of law and are being disposed of by this common judgment. In these writ petitions the sole question that falls for determination is as to whether a 'sugar industry' is a chemical industry or an industry where processing of vegetable products is carried out, within the meaning of the provisions of the Water (Prevention and Control of Pollution) Cess Act, 1977.

(2.) The facts of the cases are in a very narrow compass and are not much in dispute. The petitioner admitted is the owner of two sugar factories; one situated at Chanpatia and another at Barachakia. The aforementioned two sugar factories are engaged in the manufacture of sugar by vacuum pan process. It is alleged that in course of manufacture of sugar, sulphur is used only for the purpose of cleaning the cane juice and at no other stage of manufacturing process any other chemical is used.

(3.) The parliament enacted the Water (Prevention of Pollution) Control Act, 1974 (Act no. VI of 1974) (hereinafter referred to as 'the 1974 Act'. The said Act was enacted in terms of Article 252(1) of the Constitution on the basis of resolutions passed by both the Houses of Legislatures of the States of Assam, Bihar, Gujarat, Haryana, Himachal Pradesh, Jammu & Kashmir, Karnataka, Kerala, Madhya Pradesh etc., to the effect that the matters relating to regulation of the Prevention and Control of Pollution of Water. The Parliament thereafter with a view to augment the financial resources of the Boards constituted under the aforementioned 1974 Act enacted the Water (Prevention and Control of Pollution) Cess Act, 1977 (hereinafter referred to as 'Water Cess Act'). Sec. 3 of the aforementioned Water Cess Act, 1977 provides for levy and collection of cess for the purpose of carrying out the object as mentioned in the 1974 Act. Sub -sections (2) and (3) of Sec. 3 of the said Act further provides that cess would be payable by every person carrying on any specified industry (underlining is mine) for any of the purposes specified in column 1 of Schedule 2 thereof.