SARASWATI SUGAR MILLS versus HARYANA STATE BOARD AND ORS.

Citation: [1991] SUPP. 1 S.C.R. 523 · Decided: 22-10-1991 · Supreme Court of India · Bench: V. RAMASWAMI · Disposal: Disposed off
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Judgment (excerpt)

>· 
SARASWATI SUGAR MILLS 
A 
v. 
HARYANA STATE BOARD AND ORS. 
OC1'0BER 22, 1991 
[A.M. AHMADI AND V. RAMASWAMI, JJ.) 
B 
Water (Preventio11 and Control of Pollution) Cess Act, 1977: 
Sections 2(c), 3 and Schedule I, Entry 15--'Processing of a11imal or 
vegetable product industry'-Sugar manufacturing i11dustry--Whetlier covered 
C 
by Entry 15, Schedule I-Sugar Cane-Whether a Vegetable. 
Interpretation of Statutes: 
Co11stntctio11 of words and meaning to be given- Nom1al/y depends 
on the nature, scope and purpose of statute. 
Words and Phrases: "Vegetable", "Processi11g"-Meani11g of 
Section 3 of the Water (Prevention of Pollution and Control) Cess 
Act, 1977 provided that water cess was payable by every person carrying on 
any specified industry and every local authority, for the purposes of the 
Water (Prevention and Control of Pollution) Act, 1974. "Specified 
industry" was defined in the Act meaning any industry specified in 
Schedule I. There were 15 items under Schedule I, including "processing of 
animal or vegetable products industry", under Entry 15. 
The question for consideration in the batch of appeals, writ petitions 
and transferred cases arising out of the notices issued by the concerned 
assessing authorities demanding water cess from the sugar manufacturers 
was whether sugar manufacturing industry fell under Entry 15 of Schedule 
I of the Water (Prevention and Control of Pollution) Cess Act, 1977. 
Disposing of the appeals, writ petitions and transferred cases, this 
Court, 
HELD: 1. In the context in which the word 'vegetable' is used in 
Entry 15, Schedule I of the \Yater (Prevention and Control of Pollution) 
D 
E 
F 
G 
Cess Act, 19771 'vegetable product' means product of or made ot' or out of 
H 
523 
524 
SUPREME COURT REPORTS 
(1991) SUPP. 1 S. C.R. 
A vegetable. 'Vegetables' as understood in common parlance are not 
products <>f manufacture unless it is said that agriculture is an industry 
for certain purposes and vegetables are products of that industry. In ord~r 
to bring an industry within any of the entries in Schedule I it bas to be seen 
what is the end product produced by that industry. Sugarcane is not a 
.B vegetable though it may be an agricultural product. If the botanic meaning 
of vegetable as referring to any and every kind of plant life is to be given 
then some of the industries listed in Schedule I like Paper Industry and 
Textile Industry and even Chemical Industry which are covered by other 
entries could also be brought within Entry 15. The word 'vegetable' in the 
context does not attract the botanic meaning. The sugar manufacturing 
C industry does not, therefore, come within Entry 15 of Schedule I of the 
Cess Act. Consequently, the manufacture of alcohol from molasses, which 
is a by product of manufacture of sugar, could not be considered to be an 
industry within Entry 15 of Schedule I. [534 C-E, F] 
D . 
2.1 Tbe word 'vegetable' has been defined in many ways. From the 
botanic point of view 'vegetable' may include any plant but in common 
parlance it is understood as referred to edible plants or parts of edible 
plants. Unless the botanical meaning is giveu to the word 'vegetable' it is 
not possible to conclude sugarcane as vegetable. [528 CJ 
E 
2.2 Pollution Act may be a regulating Act, but Cess Act is a fiscal 
enactment. Therefore, the Court has to look merely at what is clearly said. 
There is no room for any intendment and no room for bringing within the 
provision of the Cess Act anything by implication. [533 E,F] 
)c-
State of West Bengal & Ors. v. Washi A/11red Etc. AIR 1977 SC 1638; 
F Member-Secretary, Andlzra Pradesh State Board for Prevention and Control 
./ of Water Pollution v.Andhra Pradesh Rayons Ltd. and others, [1989) 1 SCC 
44,M/s Motipur Zamindary Co. (P) Ltd. v. The State of Bi/tar, (1962) Suppl. 
1 SCR 498 and Rajastltan State Electricity Board v. 17ie Cess Appellate 
Committee & Anr., JT 1990 4 SC 123, referred to. 
G 
World Book, Concise Oxford Dictionary, 3rd Ed. p. 1365, Webster's 
International Dictionary and Encyclopaedia Brittannica, Vol. 23, referred to. 
2.3 Construction of words and the meaning to be given for -such 
words shall normally depend on the nature, scope and purpose of the 
H statute in which it is occurring and to the fitness of the matter to the 
.>. 
SUGARMILLSv. SfATEBOARD[V.RAMASWAMI,J.) 
525 
statute. The meaning given to .the same word occurring in a social security A 
measure or a regulating enactment may not
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