In Brief
The Supreme Court held that water tax and sewerage tax levied under Section 52 of the Uttar Pradesh Water Supply and Sewerage Act 1975 are taxes on lands and buildings, not fees for services. The taxable event is premises located within the Jal Sansthan's jurisdiction, measured by assessed annual value, at prescribed percentage rates. The court rejected arguments that the levy was a fee outside state legislative competence under Entry 49 of List II, finding the statutory framework clearly imposed a tax regardless of actual water consumption or connection status. The court overruled a prior decision that had characterized these levies as service charges, holding it was per incuriam in conflating statutory chapter headings with the actual nature of Section 52's provision.
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