ORDER

Civil Appeal Nos. 2885/2000 and 4659-4668/2000

The short question which arises for consideration in these cases is : Whether there can be a valid levy under the provisions of the Water (Prevention and Control of Pollution) Cess Act, 1977 (hereinafter referred to as "the said Act") on the hydro power generating industry?

2. The aforesaid Act was promulgated with a view to levy and collect cess from the units which were thought to cause pollution and the funds so realised were to be entrusted to appropriate authorities, inter alia, for remedial measures.

3. According to Section 3 of the said Act, the cess was payable by every person carrying on any specified industry and by every local authority. The expression specified industry is defined in Section 2(c) to mean any industry specified in Schedule I.

4. When the Act was promulgated, hydel power generating industry was not included in Schedule I. In order to be able to impose cess on this industry, a notification No. GSR 377(E) dated 16th April, 1993 was purported to be issued under Section 16 of the Act.

5. The respondents filed writ petitions challenging the imposition of cess on the hydro power generating industry. Amongst other