Hydel power generating industries could not be asked to pay pollution levy by a government order without parliament including them within the purview of Water (prevention and control of pollution) Cess Act, 1977, the Supreme Court has ruled. A bench comprising justice B N Kirpal, justice N Santosh Hegde and justice K G Balakrishnan said that as Parliament has not yet approved the amendment proposed by the government, the cess could not be imposed on these industries. The act was promulgated with a view to levy and collect cess from the units which were thought to cause pollution and the funds so realised were to be entrusted to appropriate authorities for taking remedial measures.
When the act was promulgated, hydel power generating industry was not included in schedule I giving the list of industries liable to pay pollution levy. However, by April 16, 1993 notification issued under Section 16 of the act the Centre decided to impose cess on hydel power generating industry.
National hydro-electric power corporation challenged the levy of pollution tax in Himachal Pradesh High Court on the ground that there had been no valid amendment of schedule I which was accepted by the court.
Bureau Report