MIS. R.S. REKHCHAND MOHOTA SPINNIKG AND WEAVING MILLS LTD. versus STATE OF MAHARASHTRA

Citation: [1997] SUPP. 1 S.C.R. 238 · Decided: 07-05-1997 · Supreme Court of India · Bench: K. RAMASWAMY, S. SAGHIR AHMAD, G.B. PATTANAIK · Disposal: Disposed off
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Judgment (excerpt)

A 
B 
c 
MIS. R.S. REKHCHAND MOHOTA SPINNIKG 
AND WEA YING MILLS LTD. 
v. 
STATE OF MAHARASHTRA 
MAY 7, 1997 
[K. RAMASWAMY, S. SAGHIR AHMAD AND 
G.B. PATTANAIK, JJ.] 
Maharashtra Land Revenue Code, 1966 : 
S.70 r/w. s. 2o--R.iver wate1~Levy of Cess on use for non- agricultural 
purpose-Industrial pwpos~Power of State Govemment-Spinning and 
Weaving Mills-Drawing 1iver water by artificial contrivance--Govemment 
Resolution demanding land Cess on use of water at the rates specified 
D thereill-fleld, Govemment has power under s.70 read withs. 20 to levy water 
cess 011 use of water for industrial purpose and it is taxable as incidence on 
cess 011 water as land cess and the indusuy is liable to pay water cess at the 
rates presc1ibed by the Government State competent under Entry 45 of List 
II of Seventh Schedule to the Constitution to enact law in exemse of power 
E 
under Article 246 of the Constitution-Definition of 'land' includes right to 
water flowing therefrom as in the definition in Trans/ er of Property 
Act-Transfer of Prope1ty Act, 1872-Constitution of India, Article 246, 
Seventh Schedule-List II Ent1ies 17 & 45 
Province of Madras v. Lady of Dolours Conven~ Trichinopoly, repre-
F sented by Mother Supe1ior & Ors., AIR (1942) Madras 719; Kandukuri Bala 
Swyaprasada Rao & Anr. v. Secretary to State for India, AIR (1917) PC 42; 
K.S. Ardanareeswarar Gounder v. Tehsildar, Bhavani & Anr., AIR (1976) 
Madras 318; Nizam Sugar Factory Ltd. v. City Municipality Bodhan & Anr., 
AIR (1965) AP 91; Raza Buland Sugar Company Ltd., Rampur v. Municipal 
G Board Rampur, AIR (1962) All. 83 and Shankar Narayan Ranade v. Union 
of India, [1964] 1 SCR 885, referred to. 
State of Madras v. Cannon Dunkerley & Co. (Madras) Ltd., [1959] 1 
SCR 379, held inapplicable. 
H 
Constitution of India, 1950 : 
238 
.. 
-
-
R.S.R. MOHOTA SPINNING AND WEAVING. MILLS v. STATE 
239 
Article 246, Seventh Schedule, List II, Entries 17 and 45-River A 
water-Use for industrial purpose-'Levy of Cess by State Government-Held, 
Entry 45 of List II b1ings within the ambit power of legislature u11der Article 
246 to levy ces:: 1J/I use of water eve11 from flowi11g river-Section 70 of 
Maharashtra Land Reve11ue Code, 1966 comes within Ently 45 of List II. 
Interpretatio11 of Constitution. 
Entlies in Lists of Seve11th Schedule-lnterpretation of-Held, most 
liberal co11st1Uctio11 should be put upo11 the words in the Entries so that the 
same have effect i11 their widest amplitude. 
B 
Kunnathat Thatcunni Moopil Nair v. The State of Kera/a & Anr., C 
[1961] 3 SCR 77 and Synthetics and Chemicals & Ors. v. State of U.P. & 
Ors., [1990] 1 SCC 109 followed. 
Indian Aluminium Co. & Ors. v. State of Kera/a & Ors., [1996] 7 SCC 
637, referred to. 
D, 
Words and Phrases : 
"Land''-Definition of-Held, includes right to the water flowing there-
from. 
E 
CIVIL APPELLATE JURISDICTION : Civil Appeal No. 1802 of 
1990. 
From the Judgment and Order dated 8.11.89 of the Bombay High 
Court in W.P. No. 1509 of 1981. 
AK. Sanghi for the Appellant. 
T.R. Andhyarujina, Solicitor General and A.M. Khanwilkar for the 
Respondent. 
The following Order of the Court was delivered : 
This appeal by special leave arises from the judgment of the Division 
Bench of Bombay High Court passed in Writ Petition No. 1509.of 1981 on 
November 8, 1989. The primary question is : whether the State legislature 
has power to levy rates of cess on use of flowing water from the river 
'Wana'. 
F 
G 
H 
240 
SUPREME COURT REPORTS [1997] SUPP. 1 S.C.R. 
A 
The facts are as under. The appellant had installed a mill in the year 
1989 and has been drawing water for industrial purpose from the said river 
by installing water pumps at its bank with the help of artificial contrivance. 
Under Section 70 of the Maharashtra Land Revenue Code, 1966, (for 
short, 'the Code'), the Government of Maharashtra passed the following 
B Resolution on June 5, 1972 thus : 
"In exercise of the power conferred in it by Section 70 of the 
Maharashtra Land Revenue Code, 1966, the Government is 
pleased to sanction the following rates for the use of water (the 
right to which vest in Government and in respect of which no rate 
C 
is liable under any law in force in any part of the State) for 
non-agriculture purpose. 
D 
E 
F 
G 
H 
NON-AGRICULTURE 
Rate 
Unit 
PURPOSE 
1. 
2. 
3. 
4. 
Industrial purpose 
(a) 
Rs. 8 for the first Per 
ten 
two years. 
thousand cft. 
of water 
(b) 
Rs. 10 for the 
third & fourth 
- do -
year
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