1.
   (1)   This act may be called the Water (Prevention and Control of Pollution) Cess Act, 1977.
   (2)   It extends to the whole of India except the State of Jammu and Kashmir.
   (3)   Subject to the provisions of sub-section (2), it applies to all the States to which the Water (Prevention and
           Control of Pollution) Act, 1974 applies and the Union territories.
   (4)   It shall come into force on such date as the Central Government may, by notification in the Official
           Gazette, appoint.

2.   In this Act, unless the context otherwise requires, -
      ( a)   “A local authority” means a municipal corporation or a municipal council (by whatever name called) or a
                cantonment Bard or any other body, entrusted with the duty of supplying water under the law by or under
                which it is constituted;
      (b)    “A prescribed”  means prescribed by rules made under this Act;
      (c)    “A specified industry” means any industry specified in Schedule 1;
      (d)     words and expressions used but not defined in this Act and defined in the Water (Prevention and Control
                of Pollution) Act, 1974 shall have the meanings respectively assigned to them in that Act.

3.
   (1)    There shall be levied and collected a cess for the purposes of the Water (Prevention and Control of
            Pollution) Act, 1974 and utilisation 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,
   (2A)  Where any person carrying on any specified industry or any local authority consuming water for domestic
            purpose liable to pay cess fails to comply with any of the provisions of section 25 of the Water (Prevention
            and Control of Pollution) Act, 1974 (6 of 1974) or an of the standards laid so down by the Central
            Government under the Environment (Protection) Act, 1986, cess shall be , notwithstanding anything
            contained in sub-section (2) of this section, calculated and payable at such rate, not exceeding the rate
            specified in column (3) of Schedule II. as the Central Government may, by notification in the Official
            Gazsette from time to time.
   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.
            Explanation:-
                  For the purposes of this section and section 4, Aconsumption of water@ includes supply of water.

4.
   (1)     For the purposes of measuring and recording the quantity of water consumed, every person carrying on
            any specified industry and every local authority shall affix meters of such standards and at such places as
            may be prescribed and it shall be presumed that the quantity indicated by the meter has been consumed
            by such person or local authority, as the case may be until the contrary is proved.
   (2)    Where any person or local authority falls to affix any meter as required by sub-section (1), the Central
            Government shall after notice to such person or local authority, as the case may be, cause such meter to
            be affixed and the cost of such meter together with the cost for affixing the meter may be recovered from
            such person or local authority by the Central Government in the same manner as an arrear of land revenue.

5.
   (1)     Every person carrying on any specified industry and every local authority, liable to pay the cess under
            section 3, shall furnish such returns, in such form, of such intervals and containing such particulars to
            such officer or authority, as may be prescribed.
   (2)    If a person carrying on any specified industry or a local authority, liable to pay the cess under section 3, 
            fails to furnish any return under sub-section (1), the officer or the authority shall give a notice requiring
            such person or local authority to furnish such return before such date as may be specified in the notice.

6.
   (1)   The officer or authority to whom or which the return has been furnished under section 5 shall after making
         or causing to be made such inquiry as he or it thanks fit and after satisfying himself or itself that the
         particulars stated in the return are correct, by order, assess the amount of cess payable by the concerned
         person carrying on any specified industry or local authority, as the case may be.

   (1A) If the return has not been furnished to the officer or authority under sub-section (2) of section 5, he or it
         shall, after making or causing to be made such inquiry as he or it thinks fit, by  order, assess the amount of
         cess payable by the concerned person carrying on any specified industry or local authority, as the case may
         be
   (2) An order of assessment made under sub-section (1) shall specify the date within which the cess shall be
         paid to the state Government.
   (3) A copy each of the order of assessment made under sub-section (1) shall be sent to the person or, as the
         case may be, to the local authority concerned and to the State Government
   (4) The State Government shall, through such of the officers or authorities as may be specified by it in this
         behalf by notification in the Official Gazette, collect the cess from the person or local authority liable to pay
         the same and pay the amount so collected to the Central Government in such manner and within such time
         as may be prescribed.

7.    Where any person or local authority, liable to pay the cess under this Act, installs 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 a rebate of seventy percent, of the cess payable by such person or, as the case may be, local
      authority.
      Provided that a person or local authority shall not be entitled to a rebate, if he or it –
      (a)       consumes water in excess of the maximum quantity as may be prescribed in this behalf for any
               specified industry or local authority; or
      (b)       fails to comply with any of the provisions of section 25 of the Water (Prevention and Control of Pollution)
               Act, 1974 (6 of 1974) or any of the standards laid down by the Central Government under the
               Environment (Protection) Act, 1986 (29 of 1986).

8.   The proceeds of the cess levied under section 3 shall first be credited to the Consolidated Fund of India and
      the Central Government may, if Parliament by appropriation made by law in this behalf, so provides, pay to the
      Central Board and every State Board, from time to time, from out of such proceeds, after deducting the
      expenses on collection, such sums of money as it may think fit for being utilised under the Water (Prevention
      and Control of Pollution) Act, 1974 (6 of 1974).
      Provided that while determining the sum of money to be paid to any State Board under this section, the Central
      Government shall have regard to the amount of cess collected by the State Government concerned under sub-
      section (4) of section 6
      Explanation -
         For the purposes of this section, A “State Board”  includes a Joint Board, if any, constituted under section 13
         of the Water (Prevention and Control of Pollution) Act, 1974 (6 of 1974).

9.   Any officer or authority of the State Government specially empowered in this behalf by that Government may,-
      (a)  With such assistance, if any, as he or it may think fit, enter at any reasonable time any place which he or
            it considers it necessary to enter for carrying out the purposes of this Act including the testing of the
            correctness of the meters affixed under section 4;
      (b)   do within such place anything necessary for the proper discharge of his or its duties under this Act; and
      (c)   exercise such other powers as may be prescribed.

10.   If any person carrying on any specified industry or any local authority fails to pay any amount of Cess
         payable under section 3 to the State Government within the date specified in the order of assessment made
         under section 6, such person or local authority, as the case may be, shall be liable to pay interest at twelve
         per cent per annum on the amount to be paid from date on which such payment is due till such amount is
         actually paid.

11.   If any amount of cess payable by any person carrying on any specified industry or any local authority under
         section 8 is not paid to the State Government within the date specified in the order of assessment, made
         under section 6, it shall be deemed to be in arrears and the authority prescribed in this behalf may, after
         such inquiry as it deems fit, impose on such person or, as the case may be, local authority, a penalty not
         exceeding the amount of case in arrears:
         Provided that before imposing any penalty, such person or, as the case may be the local authority shall be
         given a reasonable opportunity of being heard and if after such hearing the said authority is satisfied that the
         default was for any good and sufficient reason, no penalty shall be imposed under this section.

12.   Any amount due under this Act (including any interest or penalty payable under section 10 or section 11, as
         the case may be) from any person carrying on any specified industry or from any local authority may be
         recovered by the Central Government in the same manner as an arrear of land revenue.

13.
   (1)   Any person or local authority aggrieved by an order of assessment made under section 6 or by an order
           imposing penalty made under section 11, may within such time as may be prescribed, appeal to such
           authority in such form and in such manner as may be prescribed.
   (2)   Every appeal preferred under sub-section (1) shall be accompanied by such fees as may be prescribed.
   (3)   After the receipt of an appeal under sub-section (1), the appellate authority shall, after giving the
           appellant an opportunity of being heard in the matter, dispose of the appeal as expeditiously as possible.
   (4)   Every order passed in appeal under this section shall be final and shall not be called in question in any
           court of law.

14.
   (1)    Whoever, being under an obligation to furnish a return under this Act, furnishes any return knowing or
            having reason to believe, the same to be false shall be punishable with imprisonment which may extend to
            six months or with fine which may extend to one thousand rupees or with both.
   (2)    Whoever, being liable to pay cess under this Act, wilfully or intentionally evades or attempts to evade the
            payment of such cess shall be punishable with imprisonment which may extend to six months or with fine
            which may extend to one thousand rupees or with both.
   (3)    No court shall take cognisance of an offence punishable under this section save on a complaint made by or
            under the authority of the Central Government.

15.
   (1)    Where an offence under this Act has been committed, by a company, every person who, at the time the
            offence was committed, was in charge of and was responsible to, the company for the conduct of the
            business of the company, as well as the company shall be deemed to be guilty of the offence and shall be
            liable to be proceeded against and punished accordingly:
            Provided that nothing contained in this sub-section shall render any such person liable to any punishment,
            if he proves that the offence was committed without his knowledge or that he exercised all due diligence to
            prevent the commission of such offence.
   (2)    Notwithstanding anything contained in sub-section (1), where an offence under this Act has been
            committed by a company and it is proved that the offence has been committed with the consent or
            connivance of, or is attributable to any neglect on the part of, any director, manager, secretary or other
            officer of the company such director, manager, secretary or other officer shall also be deemed to be guilty
            of that offence and shall be liable to be proceeded against and punished accordingly.
            Explanation:  For the purposes of this section, -
            (a)   “A company” means any body corporate and includes a firm or other association individuals; and
            (b)   “A Director”, in relation to a firm, means a partner in the firm.

16.
   (1)    The Central Government may, by notification in the Official Gazette, add to Schedule 1 any industry
            having regard to the consumption of water in the carrying on of such industry and the consequent
            discharge thereof resulting in pollution of any stream and thereupon Schedule 1 shall subject to the
            provisions of sub-section (2) be deemed to be amended accordingly.
   (2)    Every such notification shall be laid before each House of Parliament if it is sitting, as soon as may be
            after the issue of the notification and if it is not sitting, within seven days of its re-assembly and the
            Central Government shall seek the approval of the Parliament to the notification by a resolution moved
            within a period of fifteen days beginning with the day on which the notification is so laid before the House of
            the People, and if Parliament makes any modification in the notification or directs that the notification
            should cease to have effect, the notification shall thereafter have effect only in such modified form or be of
            no effect, as the case may be, but without prejudice to the validity of anything previously done thereunder.

17.
   (1)    The Central Government may make rules for carrying out the purposes of this Act.
   (2)    Without prejudice to the generality of the foregoing power, such rules may provide for all or any of the
            following matters, namely:-
            (a)   the standards of the meters to be affixed and the places at which such meters are to be affixed under
                   sub-section (1) of section 4;
            (b)   the returns to be furnished under section 5,, the form in which and the intervals at which such returns
                   are to be furnished, the particular which such returns shall contain and the officer or authority to whom
                   or which such returns shall be furnished;
            (c)   the manner in which and the time within which the cess collected shall be paid to the Central
                   Government under sub-section (4) of section 6;
            (d)   the date from which any person or local authority liable to pay cess shall be entitled to the rebate
                   under section 7;
            (e)   the powers which may be exercised by the officer or authority under section 9;
            (f)   the authority which may impose penalty under section 11;
           (g)   the authority to which an appeal may be filed under sub-section (1) of section 13 and the time within
                   which and the form and manner in which such appeal may be filed;
            (h)  the fees which shall accompany an appeal under sub-section (2) of section 13; and
            (i)   any other matter which has to be or may be prescribed.
   (3)    Every rule made under this Act shall be laid, as soon as may be after it is made before each House of
            Parliament while it is in session for a total period of thirty days which may be comprised in one session or
            in two or more successive sessions and if, before the expiry of the session immediately following the
            session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or
            both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such
            modified form or be of no effect, as the case may be; so, however that any such modification or annulment
            shall be without prejudice to the validity of anything previously done under that rule.