provisions of water cess act 1977

1. IMPORTANT PROVISIONS OF
WATER (PCP) CESS ACT 1977
&
WATER (PCP) CESS RULES 1978
By
Er. R.N. PRUSTY
Env. Engineer

2. THE WATER (PREVENTION AND CONTROL OF
POLLUTION) CESS ACT, 1977
Local Authority :
Municipality or a contonment Board or any other body entrusted
with the duty of supplying water under the law by which it is
constituted.
Commencement: Since 7
th
December 1977.
An Act constituted under the Water (PCP) Act, 1974.
To provide for the levy and collection of cess on the water
consumed by persons carrying on certain industries and by
local Authorities
An economic instrument for water conservation & pollution
control

3. LEVY AND COLLECTION OF CESS
(Section-3 of the Cess Act)
Cess is levied and collected for the purpose of Water
(PCP) Act 1974 and utilization there under.
Objective : To augment the resources of the Central Board
and the State Boards.
Applicability : To the whole of India except the state of
Jammu and Kashmir.

4. •
WHO IS LIABLE TO PAY ?
Any industry having water consumption more than 10 KLD
Any industry generating hazardous wastes, irrespective of the
water consumption.
•Every person carrying on any industry and every local
authority
•“Industry” includes any operation or process or treatment
and disposal system, which consumes water or give rise to
sewage / trade effluent.

5. If any local authority supplies water to any “Industry”
or any “LOCAL AUTHORITY”
X Y
Supplies
If Y is liable to pay cess, then Y has to pay
•EVERY LOCAL AUTHORITY.
(Municipal corporation, Municipal councils, or any other body
entrusted with the duty of supplying water.)
In case any local authority supplies water to any industry or
another local authority, then the industry of the second local
authority is liable to pay cess and not the original water
supplier.

6. ASSESSMENT CESS
Quantity of Water Consumed
Rate (Paise / Kiloliter)
Specific purpose of consumption

7. SCHEDULE II
Thirty paise per kiloliterFifteen paise per
kiloliter
4. Processing whereby
water gets polluted
and the pollutants are
not easily bio-
degradable or toxic.
Twenty paise per
kiloliter
Ten paise per kiloliter3. Processing whereby
water gets polluted
and the pollutants are
easily bio-degradable
and are non toxic.
Three paise per kiloliterTwo paise per kiloliter2. Domestic purpose
Ten paise per kiloliterFive paise per kiloliter1. Industrial cooling,
spraying in mine pits
or boiler feeds.
(3)(2)(1)
Rate of cess under sub-
section(2A) of section-3
Rate of cess under sub-
section (2) of section-3
Purpose for which
water is consumed

8. CESS IS CALCULATED ON THE BASIS OF :
i) Quantity of Water consumed
Water consumed for the purposes specified in
column-1 of the Table (Schedule-II).
Consumption of water includes supply of water.
ii) Rate (Paise / Kilometer)
Rates specified in column- 2 and column- 3 of the Table.
Column- 2 (at normal rate as per Sub section- 3(2))
Column- 3 (at maximum rate as per Sub section- 3(2A))
iii) Status of Compliance to provisions of Water Act

9. CHARGED AT NORMAL RATE IF
Installed ETP/STP for treatment of the effluent.
Complied to all provisions of Water (PCP) Act
Complied to all standards laid down under E(P) Act
CHARGED AT MAXIMUM RATE IF FOUND
Non compliance to the provision of Section- 25 of the Water
(PCP) Act, 1974.
Non compliance to the standards laid down under the
Environment (protection ) Act, 1986.

10. AFFIXING OF METERS
(Section- 4 of Cess Act)
Water meters are to be affixed for measuring and recording water
consumption.
Measuring devices may be venturi meters, orifice meters
with integrators and recorders confirming to the standards
of ISI.
In case suitable meters are not available for any purpose,
V-notches, rectangular notches with certain flow recorders
may be installed after obtaining permission from the Cess
assessing authority.
Separate meters are to be provided for assessing water
consumption for each of the four purposes.
Meters shall be affixed at the entrance of the water supply
system within the premises of the consumer or as
approved by the assessing authority. In no case, any water
tapping will be there before the metering point.

11. FURNISHING OF RETURNS
(Section- 5 of Cess Act)
The consumer shall furnish Returns :
In case no return is furnished, a notice shall be issued. (Form IA)
To the assessing authority.
In Form- I of Cess Rules
On or before 5th of every calender month
Details of consumption for different purposes.

12. FORM -I
(i) from Municipal water supply mains
(ii)from well/tube well
(iii)from canal
(iv)from river
(v) from any other source
Processing whereby
water gets polluted
and the pollutants
are not easily
biodegrable and are
toxic
4.
(i) from Municipal water supply mains
(ii)from well/tube well
(iii)from canal
(iv)from river
(v) from any other source
Processing whereby
water gets polluted
and the pollutants
are easily
biodegrable
3.
(i) from Municipal water supply mains
(ii)from well/tube well
(iii)from canal
(iv)from river
(v) from any other source
Domestic purpose 2.
(i) from Municipal water supply mains
(ii)from well/tube well
(iii)from canal
(iv)from river
(v) from any other source
Industrial cooling
spraying in mine pits
or boilers feed
1.
87654321
Remarks
(*)
Quantity of
water
qualifying
for rebate
according
to the
assessee
If the meter
was out of
order the
monthly
average
consumption of
water for the
previous 3
months of
working period
Quantity of
water
consumed
in Kilo liters
Reading at
the end of
the last day
of calendar
month
under
report
Reading at
the
beginning
of the first
day of the
calendar
month
under
report
Purpose for
which water
consumed
Name and
Address of
the
consumer
(*) for claiming rebate under Col…7 the assessee shall indicate in this column the analytical and other reports
annexed to this return in support of this claim.

13. ANNEXURE TO FORM - I
On which
under
performan
ce was
noticed
There was
break down
of failure of
the plant
654321
Dates on which Concentration
of range of
parameters as
per report
Maximum
permissible
limits or
ranges
allowed as
per consent
conditions
Polluting parameters
as mentioned in the
conditions imposed
under consent
granted under
section 25/26 of the
Water (Prevention
and Control of
Pollution) Act, 1974
Sl.
No.
Report of Analysis to treated effluent showing performance of the treatment
plant For the month of ………………………………..
Sample collected on …….…………….
Sample tested on …….………………..
By the laboratories ……………………
Signature ………………………..
Date ………..……………………..
Name ……..………………………
Address …….……………………

14. ASSESSMENT OF CESS
(Section-6 of Cess Act)
Based on the Return, Cess shall be assessed.
Inquiry to be made before assessment if felt necessary.
In case no return is received, cess shall be assessed after
conducting an enquiry.
The assessment order shall specify
(i)Period of assessment
(ii)The due date of payment (i.e. within 30 calender days from
the date of issue of the order)
(iii)Amount payable
(iv)Reasons for assessment at maximum rate (if so)
Copy of the assessment order shall be sent to the consumer.
AUTHORITY- MEMBER SECRETARY OF THE STATE BOARD .

15. REBATE
(Section-7 of Cess Act)
A rebate of 25 % on the assessed amount at normal rate allowed, if :
Installed ETP/STP for treatment of the effluent.
Complied to all provisions of Water (PCP) Act
Complied to all standards laid down under E(P) Act
No rebate shall be allowed, if :
• Water consumption is in excess of the maximum quantity*.
• Failure to comply with the provisions of Section- 25 of Water
(PCP) act, 1974 and standards prescribed under the E (P)
Act, 1986.

16. REMITTANCE AND REIMBURSEMENT
(Section-8 of Cess Act)
The cess levied shall be credited to the consolidated fund
of Central Govt.
 By 10
th
of every calender month
 In form of Bank draft to the MoEF, Govt. of India,
MoEF shall remit the amount to the Reserve Bank of India.
•The Central Govt. shall pay the Central Board and the State
Boards out of the proceeds as Reimbursement.
A maximum of 80 % of the cess collected by the State Boards is
paid as reimbursement.
The funds received shall be utilized under specified heads
as per Section-17 of Water (PCP) Act, 1974.

17. POWER OF ENTRY
(Section-9 of Cess act)
Any officer or authority of the state Govt. specially empowered in
this behalf by that Govt. may
•Enter any place, at any reasonable time to carry out the
purposes of this Act including testing of correctness of
the water meters.
•Do anything within that place necessary for proper
discharge of his duties under this Act.

18. OTHER POWERS
Inspect the manufacturing process of the consumer.
Inspect the water supply systems and installations in the plant.
Inspect the Waste treatment system and installations inside the
plant.
Inspect the drainage system and installations including storm
water disposal in the plant.
Call for and inspect records related to use and consumption of
materials, water and those relating to production.
Call for and inspect records relating to power consumption in the
plant.
Call for any other information or records relating to supply,
consumption and treatment of water in the plant.

19. INTEREST PAYABLE FOR DELAY IN PAYMENT OF CESS
(SECTION-10 OF CESS ACT)
INTEREST IS CHARGED IF :
Cess dues are not paid within the due date
At the rate of 2 % per month or part of a month.
From the due date of payment till the date on which cess is
actually paid

20. PENALTY FOR NON PAYMENT OF CESS
WITHIN THE SPECIFIED PERIOD
(Section-11 of Cess Act)
If not paid within the specified date, it shall be deemed to be in
arrears.
Penalty shall be imposed, after conducting enquiry as deemed
fit.
The consumer shall be given reasonable opportunity of being
heard before imposing the penalty.
The penalty amount shall not exceed the amount of cess in
arrears.
No penalty shall be charged if there is good and sufficient
reasons for such non payment.

21. APPEALS
(Section-13 of Cess Act)
If any consumer (assessee) is aggrieved on the assessment
order or penalty, he may appeal.
•Permissible Time- Within 30 days from the date of issue of
the assessment order. (Sub section- 13(1) read with Sub Rule- 9(3))
Apply in prescribed format. - Form –II, Form of
memorandum of appeal
Appeal Shall contain :
i)Prescribed Fees : Rupees fifty only
ii)Facts of the case
iii)Grounds relied upon
iv)Copy of assessment order / penalty order
Whom to Appeal ? : - Appellate Committee. (Sub section 13(1)
Chairman of the State Board is the Chairman of the appellate
committee supported with two Board members nominated by the
chairman.
Chairman of appellate authority may allow upto 45 days if
satisfied with the reasons of delay to be recorded in writing.

22. DISPOSAL OF APPEAL
(Section-13 of Cess Act)
Upon receipt of the appeal, the appellate authority
shall dispose off the appeal after giving an
opportunity of being heard to the appellant.
Every order passed by the appellate committee
shall be final and shall not be called in question in
any court of law.

23. PENALTY
(Section-14 of Cess Act)
Any return, which is found to be false, is punishable.
* With imprisonment which may extend to six months.
* Or with fine which may extend to one thousand rupees.
* Or both.
Willfully or intentionally evading or attempting to evade the
payment of cess, is punishable.
* With imprisonment which may extend to six months.
* Or with fine which may extend to one thousand rupees.
* Or both.
No court shall take cognizance of an offence punishable under
this section- 14 of the Cess Act.

24. CESS ASSESSMENT & COLLECTION IN OSPCB
(in Rupees)
4,08,00,000
2,61,60,000
1,18,40,000
NIL
2,74,96,800
38,06,490
NIL
1,65,00,000
87,20,000
Reimbursement
NIL4,05,22,9264,46,24,5812008-2009
Remittance Cess CollectedCess
Assessed
Financial
Year
1,17,00,0001,74,55,2071,99,18,1592000-2001
1,27,00,0001,18,53,2421,46,32,8732001-2002
1,20,00,0001,03,22,5461,69,29,4172002-2003
1,92,45,0002,53,17,2903,71,72,5342003-2004
3,60,88,0003,24,44,6484,29,89,6192004-2005
3,96,00,0003,95,76,4055,71,41,7602005-2006
3,65,00,0004,81,23,0305,00,82,3962007-2008
5,43,00,0005,55,63,3675,93,71,8052006-2007

25. 0
10000000
20000000
30000000
40000000
50000000
60000000
70000000
20 00-2 001 20 01-2 002 20 02-2 003 20 03-2 004 20 04-2 005 20 05-2 006 20 06-2 007 20 07-2 008 20 08-2 009
Assessment
Collection
GRAPHICAL PRESENTATION OF CESS ASSESSMENT
& COLLECTION IN DIFFERENT YEARS
A
M
O
U
N
T

I
N

R
U
P
E
E
S
FINANCIAL YEAR

26. Questions ?

27. THANK YOU

28. 1.Ferrous Metallurgical-
Integrated Iron & Steel- 20 Cubic metres per ton of finished steel
2. Non-ferrous Metallurgical-
(a) Copper Smelters-100 Cubic metres per ton of copper
produced.
(b) Zinc Smelters- 50 Cubic metres per ton of Zinc metal
produced
10.Chemical- Caustic Soda
i.Mercury cell process- 5 Cubic metres per ton of caustic soda
produced (excluding cooling water) and 5 cubic metres per ton
of caustic soda produced for cooling water.
ii.Membrane cell process-5 Cubic meters per ton of caustic
soda produced (including cooling water)
SPECIFIC WATER CONSUMPTION FOR VARIOUS
INDUSTRIAL SECTORS AS PER WATER CESS RULES

29. SPECIFIC WATER CONSUMPTION FOR VARIOUS
INDUSTRIAL SECTORS AS PER WATER CESS RULES
4. TEXTILE (A) MANMADE FIBRE
(i) Nylon & Polyester- 170 Cubic metres per tonne fibre
produced.
(ii) Viscose rayon- 200Cubic metres per tonne of fibre
produced
5. PAPER
(a) Small Pulp and paper

(i) Agro-residue based- 200 Cubic metres per tonne of fibre produced
(ii) Waste Paper based- 75 Cubic metres per tonne of fibre produced
(b) Large Pulp and paper
(i) Pulp and Paper- 250 Cubic metres per tonne of paper
(ii) Rayon grade Paper- 200 Cubic metres per tone of paper

30. SPECIFIC WATER CONSUMPTION FOR VARIOUS
INDUSTRIAL SECTORS AS PER WATER CESS RULES
6. Fertilizer:
(a) Straight Nitro-genous fertilizer- 15 Cubic metres
per ton of urea or equivalent produced.
(b) Straight phosphatic fertilizer- 2 Cubic metres per
ton of single super phosphate/Triple super
phosphate
(c) Complex Fertilizer- 15 Cubic metres per ton in case
the primary product is nitrogenous fertilizer and
2 cubic metres per ton in case the primary
product is a phosphatic fertilizer.

31. SPECIFIC WATER CONSUMPTION FOR VARIOUS
INDUSTRIAL SECTORS AS PER WATER CESS RULES
1.Processing of animal or vegetable products industry
including processing of milk, meat, hides and skins all
agricultural products and their waste.
(a) Tanneries-30 Cubic metres per ton of raw hide
(b) Natural rubber-6 cubic metres per ton of rubber
(c) Starch, glucose and related products-10 cubic metres per
ton of maize crushed
(d) Dairy- 4 cubic metres per kilo litre of milk
(e) Jute- 1.5 cubic metres per ton of jute produced
(f) Sugar- 2 cubic metres per ton of cane crushed
(g) Maltry- 8.5 cubic metres per ton of grain processed
(h) Brewery- 1 cubic metres per kilo litre of beer produced.
(i) Distillery- 15 cubic metres per kilo litre of alcohol produced.

32. AREAS OF UTILIZATION OF CESS FUND
Assessment of environmental quality (survey and monitoring)
Strengthening of environmental monitoring facilities and
database management (sampling, analysis, including laboratory
equipment)
Development of environmental standards (source specific and
ambient / recipient system)
Training programmes to SPCBs/PCCs
Organizing /sponsoring mass awareness programmes.
Setting up of facilities for prevention of pollution from Municipal
waste disposal sites.
Treatment and disposal and industrial sewage effluents.
 Inventorization of polluting sources.
Contd….

33.  Prevention of pollution from hazardous waste disposal.
 Prevention of pollution by complying siting concept –
Zoning Atlas/ Industrial Estate Planning / Protection of
ecologically sensitive areas etc.
 Reclamation / rejuvenation of water resources including
conservation strategies.
 Remediation of contaminated ground water sites.
 Prevention and Control of direct discharge of sewage and
trade effluent into the rivers and lakes.
 Promotion of rain water harvesting and water conservation
activities.
 Any other project / programme regarding prevention and
control of water pollution.