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provisions of water cess act 1977

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provisions of water cess act 1977

  1. 1. IMPORTANT PROVISIONS OF WATER (PCP) CESS ACT 1977 & WATER (PCP) CESS RULES 1978 <ul><li>By </li></ul><ul><ul><li>Er. R.N. PRUSTY </li></ul></ul><ul><ul><li>Env. Engineer </li></ul></ul>
  2. 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. <ul><li>An Act constituted under the Water (PCP) Act, 1974. </li></ul><ul><li>To provide for the levy and collection of cess on the water consumed by persons carrying on certain industries and by local Authorities </li></ul><ul><li>An economic instrument for water conservation & pollution control </li></ul>
  3. 3. LEVY AND COLLECTION OF CESS (Section-3 of the Cess Act) <ul><li>Cess is levied and collected for the purpose of Water (PCP) Act 1974 and utilization there under. </li></ul>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. 4. <ul><li>WHO IS LIABLE TO PAY ? </li></ul>Any industry having water consumption more than 10 KLD Any industry generating hazardous wastes, irrespective of the water consumption. <ul><li>Every person carrying on any industry and every local authority </li></ul><ul><li>“ Industry” includes any operation or process or treatment and disposal system, which consumes water or give rise to sewage / trade effluent. </li></ul>
  5. 5. <ul><li>EVERY LOCAL AUTHORITY. </li></ul><ul><li>(Municipal corporation, Municipal councils, or any other body entrusted with the duty of supplying water.) </li></ul>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. 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
  6. 6. <ul><li>ASSESSMENT CESS </li></ul><ul><li>Quantity of Water Consumed </li></ul><ul><li>Rate (Paise / Kiloliter) </li></ul><ul><li>Specific purpose of consumption </li></ul>
  7. 7. SCHEDULE II Thirty paise per kiloliter Fifteen 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 kiloliter 3. Processing whereby water gets polluted and the pollutants are easily bio-degradable and are non toxic. Three paise per kiloliter Two paise per kiloliter 2. Domestic purpose Ten paise per kiloliter Five paise per kiloliter 1. 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. 8. <ul><li>CESS IS CALCULATED ON THE BASIS OF : </li></ul>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. 9. <ul><li>CHARGED AT NORMAL RATE IF </li></ul><ul><ul><li>Installed ETP/STP for treatment of the effluent. </li></ul></ul><ul><ul><li>Complied to all provisions of Water (PCP) Act </li></ul></ul><ul><ul><li>Complied to all standards laid down under E(P) Act </li></ul></ul><ul><li>CHARGED AT MAXIMUM RATE IF FOUND </li></ul><ul><ul><li>Non compliance to the provision of Section- 25 of the Water (PCP) Act, 1974. </li></ul></ul><ul><ul><li>Non compliance to the standards laid down under the Environment (protection ) Act, 1986. </li></ul></ul>
  10. 10. <ul><li>AFFIXING OF METERS </li></ul><ul><li>(Section- 4 of Cess Act) </li></ul>Water meters are to be affixed for measuring and recording water consumption . <ul><li>Measuring devices may be venturi meters, orifice meters with integrators and recorders confirming to the standards of ISI. </li></ul><ul><li>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. </li></ul><ul><li>Separate meters are to be provided for assessing water consumption for each of the four purposes. </li></ul><ul><li>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. </li></ul>
  11. 11. <ul><li>FURNISHING OF RETURNS </li></ul><ul><li>(Section- 5 of Cess Act) </li></ul>The consumer shall furnish Returns : In case no return is furnished, a notice shall be issued. (Form IA) <ul><li>To the assessing authority. </li></ul><ul><li>In Form- I of Cess Rules </li></ul><ul><li>On or before 5th of every calender month </li></ul><ul><li>Details of consumption for different purposes. </li></ul>
  12. 12. FORM -I (*) 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. <ul><li>from Municipal water supply mains </li></ul><ul><li>from well/tube well </li></ul><ul><li>from canal </li></ul><ul><li>from river </li></ul><ul><li>from any other source </li></ul>Processing whereby water gets polluted and the pollutants are not easily biodegrable and are toxic 4. <ul><li>from Municipal water supply mains </li></ul><ul><li>from well/tube well </li></ul><ul><li>from canal </li></ul><ul><li>from river </li></ul><ul><li>from any other source </li></ul>Processing whereby water gets polluted and the pollutants are easily biodegrable 3. <ul><li>from Municipal water supply mains </li></ul><ul><li>from well/tube well </li></ul><ul><li>from canal </li></ul><ul><li>from river </li></ul><ul><li>from any other source </li></ul>Domestic purpose 2. <ul><li>from Municipal water supply mains </li></ul><ul><li>from well/tube well </li></ul><ul><li>from canal </li></ul><ul><li>from river </li></ul><ul><li>from any other source </li></ul>Industrial cooling spraying in mine pits or boilers feed 1. 8 7 6 5 4 3 2 1 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
  13. 13. ANNEXURE TO FORM - I 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 …….…………………… On which under performance was noticed There was break down of failure of the plant 6 5 4 3 2 1 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.
  14. 14. <ul><li>ASSESSMENT OF CESS </li></ul><ul><li>(Section-6 of Cess Act) </li></ul><ul><li>Based on the Return, Cess shall be assessed. </li></ul><ul><li>Inquiry to be made before assessment if felt necessary. </li></ul><ul><li>In case no return is received, cess shall be assessed after conducting an enquiry. </li></ul><ul><li>The assessment order shall specify </li></ul><ul><ul><li>Period of assessment </li></ul></ul><ul><ul><li>The due date of payment (i.e. within 30 calender days from the date of issue of the order) </li></ul></ul><ul><ul><li>Amount payable </li></ul></ul><ul><ul><li>Reasons for assessment at maximum rate (if so) </li></ul></ul><ul><li>Copy of the assessment order shall be sent to the consumer. </li></ul>AUTHORITY- MEMBER SECRETARY OF THE STATE BOARD .
  15. 15. <ul><ul><li>REBATE </li></ul></ul><ul><ul><li>(Section-7 of Cess Act) </li></ul></ul>A rebate of 25 % on the assessed amount at normal rate allowed, if : <ul><li>Installed ETP/STP for treatment of the effluent. </li></ul><ul><li>Complied to all provisions of Water (PCP) Act </li></ul><ul><li>Complied to all standards laid down under E(P) Act </li></ul>No rebate shall be allowed, if : <ul><li>Water consumption is in excess of the maximum quantity*. </li></ul><ul><li>Failure to comply with the provisions of Section- 25 of Water (PCP) act, 1974 and standards prescribed under the E (P) Act, 1986. </li></ul>
  16. 16. <ul><li>REMITTANCE AND REIMBURSEMENT </li></ul><ul><li>(Section-8 of Cess Act) </li></ul><ul><li>The cess levied shall be credited to the consolidated fund of Central Govt. </li></ul><ul><li>By 10 th of every calender month </li></ul><ul><li>In form of Bank draft to the MoEF, Govt. of India, </li></ul><ul><li>MoEF shall remit the amount to the Reserve Bank of India. </li></ul><ul><li>The Central Govt. shall pay the Central Board and the State Boards out of the proceeds as Reimbursement. </li></ul><ul><li>A maximum of 80 % of the cess collected by the State Boards is paid as reimbursement. </li></ul><ul><li>The funds received shall be utilized under specified heads as per Section-17 of Water (PCP) Act, 1974. </li></ul>
  17. 17. <ul><li>POWER OF ENTRY </li></ul><ul><li>(Section-9 of Cess act) </li></ul>Any officer or authority of the state Govt. specially empowered in this behalf by that Govt. may <ul><li>Enter any place, at any reasonable time to carry out the purposes of this Act including testing of correctness of the water meters. </li></ul><ul><li>Do anything within that place necessary for proper discharge of his duties under this Act. </li></ul>
  18. 18. OTHER POWERS <ul><li>Inspect the manufacturing process of the consumer. </li></ul><ul><li>Inspect the water supply systems and installations in the plant. </li></ul><ul><li>Inspect the Waste treatment system and installations inside the plant. </li></ul><ul><li>Inspect the drainage system and installations including storm water disposal in the plant. </li></ul><ul><li>Call for and inspect records related to use and consumption of materials, water and those relating to production. </li></ul><ul><li>Call for and inspect records relating to power consumption in the plant. </li></ul><ul><li>Call for any other information or records relating to supply, consumption and treatment of water in the plant. </li></ul>
  19. 19. INTEREST PAYABLE FOR DELAY IN PAYMENT OF CESS (SECTION-10 OF CESS ACT) <ul><li>INTEREST IS CHARGED IF : </li></ul><ul><li>Cess dues are not paid within the due date </li></ul><ul><li>At the rate of 2 % per month or part of a month. </li></ul><ul><li>From the due date of payment till the date on which cess is actually paid </li></ul>
  20. 20. <ul><li>PENALTY FOR NON PAYMENT OF CESS </li></ul><ul><li>WITHIN THE SPECIFIED PERIOD </li></ul><ul><li>(Section-11 of Cess Act) </li></ul><ul><li>If not paid within the specified date, it shall be deemed to be in arrears. </li></ul><ul><li>Penalty shall be imposed, after conducting enquiry as deemed fit. </li></ul><ul><li>The consumer shall be given reasonable opportunity of being heard before imposing the penalty. </li></ul><ul><li>The penalty amount shall not exceed the amount of cess in arrears. </li></ul><ul><li>No penalty shall be charged if there is good and sufficient reasons for such non payment. </li></ul>
  21. 21. <ul><li>APPEALS </li></ul><ul><li>(Section-13 of Cess Act) </li></ul><ul><li>If any consumer (assessee) is aggrieved on the assessment order or penalty, he may appeal. </li></ul><ul><li>Permissible Time- Within 30 days from the date of issue of the assessment order . (Sub section- 13(1) read with Sub Rule- 9(3)) </li></ul><ul><li>Apply in prescribed format. - Form –II, Form of memorandum of appeal </li></ul><ul><li>Appeal Shall contain : </li></ul><ul><ul><li>Prescribed Fees : Rupees fifty only </li></ul></ul><ul><ul><li>Facts of the case </li></ul></ul><ul><ul><li>Grounds relied upon </li></ul></ul><ul><ul><li>Copy of assessment order / penalty order </li></ul></ul>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. 22. <ul><li>DISPOSAL OF APPEAL </li></ul><ul><li>(Section-13 of Cess Act) </li></ul><ul><li>Upon receipt of the appeal, the appellate authority shall dispose off the appeal after giving an opportunity of being heard to the appellant. </li></ul><ul><li>Every order passed by the appellate committee shall be final and shall not be called in question in any court of law. </li></ul>
  23. 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. 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 NIL 4,05,22,926 4,46,24,581 2008-2009 Remittance Cess Collected Cess Assessed Financial Year 1,17,00,000 1,74,55,207 1,99,18,159 2000-2001 1,27,00,000 1,18,53,242 1,46,32,873 2001-2002 1,20,00,000 1,03,22,546 1,69,29,417 2002-2003 1,92,45,000 2,53,17,290 3,71,72,534 2003-2004 3,60,88,000 3,24,44,648 4,29,89,619 2004-2005 3,96,00,000 3,95,76,405 5,71,41,760 2005-2006 3,65,00,000 4,81,23,030 5,00,82,396 2007-2008 5,43,00,000 5,55,63,367 5,93,71,805 2006-2007
  25. 25. GRAPHICAL PRESENTATION OF CESS ASSESSMENT & COLLECTION IN DIFFERENT YEARS AMOUNT IN RUPEES FINANCIAL YEAR
  26. 26. <ul><li>Questions ? </li></ul>
  27. 27. <ul><li>THANK YOU </li></ul>
  28. 28. <ul><li>Ferrous Metallurgical- </li></ul><ul><li>Integrated Iron & Steel- 20 Cubic metres per ton of finished steel </li></ul><ul><li>2. Non-ferrous Metallurgical- </li></ul><ul><li>(a) Copper Smelters-100 Cubic metres per ton of copper </li></ul><ul><li>produced. </li></ul><ul><li>(b) Zinc Smelters- 50 Cubic metres per ton of Zinc metal </li></ul><ul><li>produced </li></ul><ul><li>Chemical- Caustic Soda </li></ul><ul><ul><li>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. </li></ul></ul><ul><ul><li>Membrane cell process-5 Cubic meters per ton of caustic soda produced (including cooling water) </li></ul></ul>SPECIFIC WATER CONSUMPTION FOR VARIOUS INDUSTRIAL SECTORS AS PER WATER CESS RULES
  29. 29. SPECIFIC WATER CONSUMPTION FOR VARIOUS INDUSTRIAL SECTORS AS PER WATER CESS RULES <ul><li>4. TEXTILE (A) MANMADE FIBRE </li></ul><ul><li>(i) Nylon & Polyester- 170 Cubic metres per tonne fibre produced. </li></ul><ul><li>(ii) Viscose rayon- 200Cubic metres per tonne of fibre produced </li></ul><ul><li>5. PAPER </li></ul><ul><li>(a) Small Pulp and paper </li></ul><ul><ul><li>(i) Agro-residue based- 200 Cubic metres per tonne of fibre produced </li></ul></ul><ul><ul><li>(ii) Waste Paper based- 75 Cubic metres per tonne of fibre produced </li></ul></ul><ul><li>(b) Large Pulp and paper </li></ul><ul><ul><li>(i) Pulp and Paper- 250 Cubic metres per tonne of paper </li></ul></ul><ul><ul><li>(ii) Rayon grade Paper- 200 Cubic metres per tone of paper </li></ul></ul>
  30. 30. SPECIFIC WATER CONSUMPTION FOR VARIOUS INDUSTRIAL SECTORS AS PER WATER CESS RULES <ul><li>6. Fertilizer: </li></ul><ul><li>(a) Straight Nitro-genous fertilizer- 15 Cubic metres per ton of urea or equivalent produced. </li></ul><ul><li>(b) Straight phosphatic fertilizer- 2 Cubic metres per ton of single super phosphate/Triple super phosphate </li></ul><ul><li>(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. </li></ul>
  31. 31. SPECIFIC WATER CONSUMPTION FOR VARIOUS INDUSTRIAL SECTORS AS PER WATER CESS RULES <ul><li>Processing of animal or vegetable products industry including processing of milk, meat, hides and skins all agricultural products and their waste. </li></ul><ul><li>(a) Tanneries-30 Cubic metres per ton of raw hide </li></ul><ul><li>(b) Natural rubber-6 cubic metres per ton of rubber </li></ul><ul><li>(c) Starch, glucose and related products-10 cubic metres per ton of maize crushed </li></ul><ul><li>(d) Dairy- 4 cubic metres per kilo litre of milk </li></ul><ul><li>(e) Jute- 1.5 cubic metres per ton of jute produced </li></ul><ul><li>(f) Sugar- 2 cubic metres per ton of cane crushed </li></ul><ul><li>(g) Maltry- 8.5 cubic metres per ton of grain processed </li></ul><ul><li>(h) Brewery- 1 cubic metres per kilo litre of beer produced. </li></ul><ul><li>(i) Distillery- 15 cubic metres per kilo litre of alcohol produced. </li></ul>
  32. 32. <ul><li>AREAS OF UTILIZATION OF CESS FUND </li></ul><ul><li>Assessment of environmental quality (survey and monitoring) </li></ul><ul><li>Strengthening of environmental monitoring facilities and database management (sampling, analysis, including laboratory equipment) </li></ul><ul><li>Development of environmental standards (source specific and ambient / recipient system) </li></ul><ul><li>Training programmes to SPCBs/PCCs </li></ul><ul><li>Organizing /sponsoring mass awareness programmes. </li></ul><ul><li>Setting up of facilities for prevention of pollution from Municipal waste disposal sites. </li></ul><ul><li>Treatment and disposal and industrial sewage effluents. </li></ul><ul><li>Inventorization of polluting sources. </li></ul><ul><li>Contd…. </li></ul>
  33. 33. <ul><li>Prevention of pollution from hazardous waste disposal. </li></ul><ul><li>Prevention of pollution by complying siting concept – Zoning Atlas/ Industrial Estate Planning / Protection of ecologically sensitive areas etc. </li></ul><ul><li>Reclamation / rejuvenation of water resources including conservation strategies. </li></ul><ul><li>Remediation of contaminated ground water sites. </li></ul><ul><li>Prevention and Control of direct discharge of sewage and trade effluent into the rivers and lakes. </li></ul><ul><li>Promotion of rain water harvesting and water conservation activities. </li></ul><ul><li>Any other project / programme regarding prevention and control of water pollution. </li></ul>

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