In Brief
A chemical manufacturing company in Hyderabad discharged its industrial effluents through a common treatment plant (CETP) into the Board's sewerage system. The Board demanded sewerage cess based on Section 55 of the HMWS&S Act. The company argued it was exempt because its premises were not directly connected to the sewer and the proviso to Section 55 applied. The Supreme Court upheld the levy, holding that an occupier who consumes water and ultimately discharges effluents into the Board's sewerage system—whether directly or indirectly through a CETP—must pay sewerage cess as a statutory obligation. Charges paid by the CETP to the Board for transmission and further treatment do not constitute double levy, as they are distinct contractual charges for the Board's services.
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