The main legal point established in the judgment is that the rule-making authority cannot add further conditions beyond what is prescribed by the statute, and statutes should be construed literally unless leading to absurdity.

The challenge in this batch of petitions is to the orders of the appellate authority constituted under S.13 of the Water (Prevention and Control of Pollution) Cess Act, 1977 (Central Act 36/77), and the revised assessment orders passed on their basis. The petitioners who were the appellants before the "appellate committee" are the Pulp Division and Staple Fibre Division of the Gwalior Rayon Silk Mfg. (Wvg.) Co. at Mavoor. The orders passed in appeal are all marked as Ext.P-1, and the revised assessment orders, as Ext.P-2. Three grounds are urged, and they are:-

(i). The Pulp Division is not a "specified industry" within the meaning of Sec.2(c) of the Act, and no cess can consequently be levied in respect of that Division under Sec.3;

(ii). The proceedings of the appellate committee are vitiated by legal bias; and

(iii). Rule 6 of the Water (Prevention and Control of Pollution) Cess Rules, 1978 relied on by the appellate committee for denying the benefit of rebate to the petitioners is ultra vires.

2. The respondents rely on some of the provisions of the Water (Prevention and Control of Pollution) Act, 1974 (Central Act 6/74) to sustain the validity of the rule in question. Even otherwise, the levy of cess under Act 36/77 is for augmenting the resources of the Central Board and State Board constituted under Act 6/74. It is therefore necessary to examine the schemes of both the enactments.

3. Act 6/74 (hereinafter called the 'Pollution Act') is an Act for the prevention and control of water pollution and for the establishment of "Boards" for such prevention and control. Pollution is defined in S.2(e), and broadly stated, it means such contamination or alteration of the properties of water, or such discharge of sewage or trade effluent into water, as is likely to create a nuisance, or render such water harmful or injurious to public health. Chapter II of the Act provides for the constitution of a Central Board and State Boards for exercising the powers conferred on them and performing the functions assigned to them. Chapter IV deals with the powers and functions of the Board. S.17 deals with the functions of a State Board, and they include:-

(i) the inspection of trade effluents and works and plants for the treatment of trade effluents, and reviewing of plans, specifications and other data relating to treatment plants, and the system for disposal of trade effluent or other works in connection with the grant of 'consent' under the Act;

(ii) the laying down of standards for trade effluents and for the quality of receiving waters resulting from the discharge of such effluents;

(iii) the laying down of standards of treatment of trade effluent to be discharged into a stream;

and (iv) the making, varying or revoking of orders for the prevention, control or abatement of discharges.

Chapter V contains the key provisions for preventing and controlling water pollution. S.20 in this Chapter empowers a State Board to collect information and data about the flow of water in streams by itself; and also to give directions to persons and establishments consuming water to furnish data. Under S.21, the Board can collect samples of effluents and get them analysed; and under S.22, a copy of the report of the analyst is to be furnished to the occupier of the factory or premises concerned, and another copy is to be retained for use in legal proceedings that may be initiated against him. S.23 empowers any person authorised by the Board to enter any place for performing the functions entrusted to him; he can inspect the place and detect non-compliance with notices, orders or directions of the Board. Plants, records, registers, documents and material objects can be examined if commission of an offence is suspected.

Section 24 provides that no person shall knowingly cause or permit any poisonous, noxious or polluting matter (determined in accordance with the standards laid down by the Board) to enter any stream or well; discharge into the stream of any other