law: Water (Prevention & Control of Pollution) Cess Act, 1977
  3. Levy and collection of cess
  (1) There shall be levied and collected a cess
  
  for the purposes of the Water (Prevention and Control of Pollution) Act, 1974
  
  (6 of 1974) and utilization thereunder.
  (2) The cess under sub-section (1) shall be
  
  payable by-
  (a) every person
  
  carrying on any specified industry; and
  (b) every local
  
  authority, and shall be calculated on the basis of the water consumed by such
  
  person or local authority, as the case may be, for any of the purposes
  
  specified in column (1) of Schedule II, at such rate, not exceeding the rate
  
  specified in the corresponding entry in column (2) thereof, as the Central
  
  Government may, by notification in the Official Gazette, from time to time,
  
  specify.
  1[(2A) Where any person carrying on any
  
  specified industry or any local authority consuming water for domestic purpose
  
  liable to pay cess fails to comply with any of the provisions of section 25 of
  
  the Water (Prevention and Control of Pollution) Act, 1974 (6 of 1974) or any of
  
  the standards laid down by the Central Government under the Environment
  
  (Protection) Act, 1986 (29 of 1986), cess shall be, notwithstanding anything
  
  contained in sub-section (2) of this section, calculated and payable at such
  
  rate, not exceeding the rate specified in column (3) of Schedule II, as the
  
  Central Government may, by notification in the Official Gazette, from time to
  
  time, specify.]
  (3) Where any local authority supplies water
  
  to any person carrying on any specified industry or to any other local
  
  authority and such person or other local authority is liable to pay cess
  
  2[under sub-section (2) or sub-section (2A)] in respect of the water so
  
  supplied, then, notwithstanding anything contained 2[in those sub-sections],
  
  the local authority first mentioned shall not be liable to any such cess in
  
  respect of such water.
  Explanation: For the purposes of
  
  this section and section 4, "consumption of water" includes supply of
  
  water.