THE HON’BLE SRI JUSTICE BILAL NAZKI AND THE HON’BLE SRI JUSTICE G.CHANDRAIAH WRIT PETITION No. 11975 OF 1996 -03-2006 Between: ITC Bhadrachalam Paperboards Limited, Secunderabad, rep. by its Company Secretary and General Manager (Legal) & another. ……Petitioners And Government of Andhra Pradesh, rep. by its Secretary, Revenue Department & others. …..Respondents THE HON’BLE SRI JUSTICE BILAL NAZKI AND THE HON’BLE SRI JUSTICE G.CHANDRAIAH WRIT PETITION No. 11975 OF 1996 ORDER : (Per Hon’ble Sri Bilal Nazki, J) The petitioner-Company is a Public Limited Company and is manufacturing paper and paperboards at its factory situated in Scheduled Area of Sarapaka village in Khammam District. The petitioner-Company contends that they established an integrated pulp and paper mill in the backward area as various incentives and concessions were offered by the Government. Particular reference is given to G.O.Ms.No.201 (Social Welfare), dated 17th December 1976. It is further stated that by G.O.Ms.No.503 Irrigation and Power (IRR.IV. Department) dated 26th June 1976, the petitioner-Company was permitted to draw water up to 15 Million gallons per day from river Godavari and accordingly, the petitioner- Company is drawing water from 1st September 1979. The petitioner- Company was paying water tax at the rate of Rs.6/- per 1000 cubic yards on the water consumed by it. Charges per 1000 cubic yards was Rs.12/- in terms of G.O.Ms.No.1276 (Revenue) dated 30th November 1976. The petitioner-Company was availing 50% concession in terms of G.O.Ms.No.201, dated 17th December 1976. The consumption was being arrived at by reckoning inflow and outflow of water into and out of the mill premises. According to the petitioners, by virtue of G.O.Ms.No.1276, dated 30th November 1976, the Company was not required to pay tax on treated water discharged into the river. Such tax was only for the water drawn for cooling purpose and returned to the river undiminished and unpolluted. However, the authorities were calling the Company to pay tax on water discharged into the river. They brought this to the notice of the respondents, but they were insisting on payment of the tax. The petitioner-Company has paid an amount of Rs.7,11,381/- for the period from 01.9.1979 to 31.3.1995, although it had to pay only an amount of Rs.2,18,386/-. The Department is, without basis, levying a tax of Rs.41,99,240/- and calling upon the petitioner-Company to pay an amount of Rs.34,87,859/- under the threat of attachment of assets of the Company. It appears that a distraint order had been served on petitioners on 14.6.1996 and challenging the distraint order, this writ petition has been filed. The 1st G.O. is dated 26th June 1976, being G.O.Ms.No.503. By this G.O., the Company was permitted to draw 15 Million gallons of water per day from Godavari river, subject to the following conditions among others – 1. The rate of 1000 Cubic yards drawn will be as per rules. 2. Untreated affluent will not be permitted to be let out into the river. 3. The opinion of the Executive Engineer whether the affluent on treatment is fit to be let into the river or not is final 4. The rates of water are subject to revision by Government from time to time. 5. The location erection of the pumping device etc., should be according to the approved plan. 6. The installations should be well above the flood zone. G.O.Ms.No.1276, dated 30th November 1976, lays down the rates for supply of water to private industries, corporate firms, local bodies etc., by mechanical means. If water is drawn for cooling purpose and returned undiminished and unpolluted to Government source, the rate would be Rs.12/- per 1000 cubic yards. The rate would be same if the water was partly consumed and partly used for cooling purposes and returned undiminished and unpolluted. Then, another G.O. was issued being G.O.Ms.No.201, dated 17th December 1976. It also gives exemption from water rates and lays down, “In addition to the incentives already available in terms of G.O.Ms.No.604 Revenue dated 9-5-1975, it is hereby ordered that 50% concession will be given to the entrepreneurs for setting up industries in the Scheduled Areas in respect of charges for water used for industrial purposes from sources maintained at the cost of Government or any local body.” G.O.Ms.No.201 was clarified and modified by G.O.Ms.No.386 Revenue (LR) Department, dated 2.5.1990. It lays down, “The above concession shall be applicable for a period of five years from the date of establishment of the industry or till the industry reaches its rated capacity in its production, whichever is earlier and thereafter full assessment under Non-Agricultural Land Assessment Act should be levied and collected from such undertakings/ entrepreneurs.” Heard learned counsel for the petitioners. Nobody appears for the respondents. In the counter-affidavit, reliance has been placed on G.O.Ms.No.386, which has been issued in 1990 and in terms of this G.O., the concession was only for five years or till the Company reached its rated capacity. According to the counter, the petitioner- Company availed 50% concession up to March 1981, by which date it had reached the rated capacity of production. It is also stated that part of the water discharged by the petitioner-Company was polluted one and was not as clean as was being drawn from Godavari river and it had been admitted by the petitioner-Company in the letter dated 20th of April 1990. It is contended that the Company was discharging polluted and coloured water into Godavari river, therefore, it had to pay Rs.12/- per 1000 cubic yards. In view of the fact that in terms of G.O.Ms.No.386, concessions could be availed only for a period of five years or till the date the Company had reached the rated capacity, we do not think the petitioner was entitled to any concessions and additionally, it is contended that the petitioner was polluting the waters of Godavari river. For the reasons stated hereinabove, the writ petition is misconceived and it is accordingly dismissed. Costs of Rs.5,000/- are imposed. The Pollution Control Board is directed to inspect the petitioner-Company and take steps to ensure that the water discharged to Godavari river, is not polluted. ________________ (BILAL NAZKI, J) 20th March 2006 __________________ (G.CHANDRAIAH, J) ajr