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1990 (10) TMI 365

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..... and for matters connected there- with. Pollution , as defined in section 2(e), means such contamination of water or such alteration of physical, chemical or biological properties of water or such discharge of any sewage or trade effluent or of any other liquid, gaseous or solid substance into water as may, or is likely to, create a nuisance or render such water harmful or inju- rious to public health or safety, or to domestic, commer- cial, industrial, agricultural or other legitimate uses, or to the life and health of animals or plants or of acquatic organisms . Sewage effluent according to section 2(g) means effluent from any sewerage system or sewage disposal works and includes sullage from open drains . Trade efflu- ent according to Section 2(k) includes any liquid, gaseous or solid substance which is discharged from any premises used for carrying on any trade or industry, other than domestic sewage . Section 3, 4 and 13 provide for the con- stitution of a Central Board, a State Board and a Joint Board, respectively. Section 16 enumerates the functions of the Central Board constitution for promoting cleanliness of streams and wells in different areas of the State. Secti .....

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..... ded to the appellate authority. Section 29 confers revisional powers on the State Government to call for the records of any case where an order has been made by the State Board under Sections 25, 26 and 27 for the purpose of satisfying itself as to the legality or propriety of any such order. Failure to comply with the requirements of the statute is punishable under Chapter VII. Thus, this law aims at prevention and control of water pollution. On 7th December. 1977, the President gave his assent to the Water (Prevention and Control of Pollution) Cess act,1977(Act No. XXXVI of 1977), (hereinafter referred to as the 1977 Act ). This Act was enacted to provide for the levy and collection of a cess on water consumed by persons carrying on certain industries, with a view to augment the resources of the statutory Boards for the prevention and control of water pollution. Section 2(c) defines specified industry to mean any industry specified in Schedule I . Power (Thermal Diesel) Generating Industry is included at item No. 14 in Schedule I to the Act. Section 3 which is the charging section inter alia provides that there shall be levied and collected a cess for the purposes of the .....

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..... ity, liable to pay the cess under this Act, instals any plant for the treatment of sewage or trade effluent, such person or local authority shall from such date as may be prescribed, be entitled to rebate of seventy per cent of the cess payable by such person or, as the case may be, local authority. The expressions sewage and trade effluents having not been defined would have the same meanings respectively assigned to them under the 1974 Act. Section 17 empowers the Central Government to make rules for carrying out the purposes of the Act. Under that section, the Central Government made the Water (Prevention Control of Pollution) Cess Rules, 1978, (hereinafter called the Rules ). Rule 6 thereof deals with rebate. Under that rule where a consumer instals any plant for the treatment of sewage or trade effluent such consumer becomes entitled to the rebate under section 7 on or from the expiry of 15 days from the date on which such plant is successfully commissioned and so long as it functions successfully. The appellant, the Rajasthan State Electricity Board constituted in 1957 under section 5 of the Electricity (Supply) Act, 1948, established a Thermal Power Station on .....

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..... 1984 the appellant submitted a review petition which was rejected by respondent No. 2. The appellant then preferred an appeal but the same was dismissed as barred by limitation. The appellant preferred separate Writ Petitions Nos. 12 1/85 and 966/86 in the High Court challenging the two assessment orders. In the former writ petition the High Court granted interim stay against the recovery of the disputed cess amount to the extent of seventy percent till the disposal of the writ petition. In the second writ petition since the appellant had already paid the amount of cess, the application for stay did not survive but for future assessment orders, it directed the appellant to pay thirty percent regularly and the remaining seventy percent with interest at 15% per annum in the event the challenge failed. Both the aforesaid writ petitions were finally disposed of by a Division Bench on 28th October. 1988 which dismissed them holding that the cess was correctly assessed and the appellant was not entitled to rebate. In taking this view the Division Bench came to the conclusion that there was no material on record to show that the appellant had applied for consent of the State Board to inst .....

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..... he consent of the State Board under section 25(1) of the 1974 Act. He contended that the State Board s consent became necessary only if an outlet new or altered- was sought to be used for the discharge of sewage or trade effluent in the stream and not otherwise. In the present case, contended Dr. Singhvi, the appellant had put up an independent sewage plant for the treatment of sewage and an independent neutralisation plant for the treatment of water discharged from the condensor cooling plant of the Thermal Station. So far as the former is concerned the consumption of water is negligible; the bulk consumption takes place at the condensor cooling plant from where water is discharged after use at a temperature far above the standard of 40 C, which if discharged into the stream without treatment would be harmful and injurious to acquatic organisms in the stream. That is why the neutralisation plant was necessary to bring down the temperature of water to 40C or below before its actual discharge in the stream. At the point where this water merges into the stream its temperature is below 40 C and therefore it ceases to be a contaminated trade effluent. Since the outlet is used for the d .....

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..... uestion of Parliament s competence to enact the 1977 Act, we do not propose to delve into this aspect of the matter. Now, on a plain reading of sub-section (1) of section 25 it becomes clear that the previous consent of the State Board is necessary where any new or altered outlet is proposed to be used for the discharge of sewage or trade effluent into a stream or well. If what is discharged in the stream or well is not a pollutted trade effluent (section 2(k)) or a sewage effluent (section 2(g)), can there be any question of seeking the previous consent of the State Board? The appellant has a separate sewage plant. Since the bulk of the water is consumed at the condensor cooling plant and the same is recycled into the stream, the question is whether what is discharged in the stream can be said to be a trade effluent? Dr. Singhvi emphasised that the consent of the State Board would not be necessary under section 25(1) for the discharge of that recycled water, unless it is shown that what the appellant discharged in the stream or river was polluted water, According to Dr. Singhvi, the use of water at the condensor cooling plant merely raises the temperature of water above the .....

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..... e in that behalf was raised before us. However, as the bulk consumption of water from the river is used at the condensor cooling plant the question is whether the appellant can be said to have installed a plant for the treatment of a trade effluent. The Appellate Authority took the view that a 150 ft. long channel meant for carrying the trade effluent cannot be described as a treatment plant. The appellant contended that the treatment plant installed by it comprises of an arrangement to lift the water to a height of 22 ft. and then drop it from that height into an open channel so that it cools down on coming in contact with the atmosphere and then flows towards and into the river. It would appear that this arrangement was not specifically brought to the notice of the authorities below including the High Court and it seems the authorities decided the question of the existence of the treatment plant on the premise that it consisted of merely a single 150 ft. long channel. However, this aspect has to be looked into. The High Court has, however, taken the view that in the absence of consent under Section 25( 1 ), the appellant is not entitled to rebate. We find it difficult to agree .....

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