VASANT CHEMICALS LIMITED versus THE MANAGING DIRECTOR, HYDERABAD METROPOLITIAN WATER SUPPLY AND SEWERAGE BOARD AND OTHERS

Citation: [2019] 3 S.C.R. 749 · Decided: 13-02-2019 · Supreme Court of India · Bench: R. BANUMATHI · Disposal: Dismissed

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Judgment (excerpt)

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VASANT CHEMICALS LIMITED
v.
THE MANAGING DIRECTOR, HYDERABAD
METROPOLITIAN WATER SUPPLY AND SEWERAGE BOARD
AND OTHERS
(Civil Appeal Nos. 4616-4617 of 2009)
FEBRUARY 13, 2019
[R. BANUMATHI AND INDIRA BANERJEE, JJ.]
Hyderabad Metropolitan Water Supply and Sewerage Act,
1989:
s.55 – Charges towards the use of sewerage cess – Appellant
unit’s industrial effluents, after partial treatment at another company,
let into the Water Supply and Sewerage Board’s sewer line – Levy
of sewerage cess on the appellant by the Board – Held: Levy of
sewerage cess on the appellant by the Board is in accordance with
s. 55 and Clause 16 of the agreement entered into between the
appellant and the Board – Appellant being occupier of the premises,
though its unit is not directly connected with the Board sewer line,
the industrial effluents of the appellant unit partially treated at JETL
are ultimately let into the Board sewer line which is finally carried
to the Sewerage Treatment Plant – It cannot be said that appellant
is not liable to pay sewerage cess to the Board as it is not directly
letting out sewage effluents into the sewage line of the Board and
that it is carrying its effluents in the tanker, lorries and letting out
in the effluent treatment plant of JETL and thus, not connected with
the sewage system of the Board – Since the sewage of the appellant
is ultimately let into the sewer line of the Board, the appellant cannot
contend that it is covered under proviso to s. 55 – Furthermore,
payment of sewerage surcharges and other charges by JETL cannot
take away the statutory liability of sewerage cess levied on the
appellant’s unit which  consumes water and lets out the sewage into
the Board sewer system – Payment of sewerage surcharge and other
charges by JETL to the Board will not amount to double levy –
Cess.
Dismissing the appeals, the Court
HELD: 1.1 Section 55 of the Hyderabad Metropolitan
Water Supply and Sewerage Board Act, 1989 contemplates levy
[2019] 3 S.C.R. 749
749
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SUPREME COURT REPORTS
[2019] 3 S.C.R.
of sewerage cess on the occupier of the premises from where
the sewage or industrial effluents, as the case may be, are let
into the sewer facility provided by the Board by any means
whatsoever irrespective of fact whether or not the area is served
by sewerage system of the Board. [Para 11][761-A-B]
1.2 As per the agreement entered into with the Board, the
management of the JETL pays the amount to the Board towards
surcharge for discharging partially treated effluents from JETL
into Board sewer and also for maintenance of the sewerage
system. After the industrial effluents are partly treated at JETL,
the industrial effluents are let into the dedicated pipeline
belonging to the Board system at Balanagar and from there, the
sewage is let into 1000 mm diameter sewage trunk main belonging
to the Board through which the effluents are carried to Sewerage
Treatment Plant (STP) at Amberpet. [Para 13][762-G-H; 763-A]
1.3 The appellant being an occupier of a “non-domestic
premise” having bulk water supply connection from the Board
and “a consumer of water” and eventually discharging sewage
effluents into the sewer line of the Board, the essential ingredients
of Section 55 are thus satisfied. The levy of sewage cess by the
respondent is a statutory levy which the appellant is liable to pay
under Section 55 of HMWS&S Act. Clause 16 of the agreement
provides for payment of sewerage cess in terms of Section 55 of
the Act which inter alia stipulates that the appellant is required
to pay sewerage cess in accordance with Section 55 of the Act.
The sewerage cess of 35% levied by the Board for carrying the
sewage of the acceptable quality through its transmission system
is thus, both statutory and in terms of the agreement between
the appellant and JETL. [Para 16][764-B-C]
1.4 As per Section 54 of the Act, sewage which is likely to
damage or interfere with the free maintenance of the sewerage
system of the Board cannot be passed into the Board sewer and
sewage treatment works. In terms of Section 54 of HMWS&S
Act, Clause 19 is also incorporated in the agreement between
the appellant industry and HMWS&SB, whereby no effluents shall
be discharged into the Board’s sewerage system unless such
effluents are treated in accordance with the provisions of the Water
Act, 1974. Admittedly, JETL is neither a consumer of bulk water
supply nor generating any sewage/industrial effluents of its own.
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