(2)

The cess under sub-section (1) shall be payable by-

(a) every person carrying on any [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.

(3)

Where any local authority supplies water to any person carrying on any [industry] [ Substituted by Act 19 of 2003, Section 3, for " specified industry " (w.e.f. 6.5.2003).] or to any other local authority and such person or other local authority is liable to pay cess [under sub-section (2) or sub-section (2-A)] [ Substituted by Act 53 of 1991, Section 2, for " under sub-section (2)" (w.e.f. 26.1.1992).] in respect of the water so supplied, then, notwithstanding anything contained [in those sub-sections] [ Substituted by Act 53 of 1991, Section 2, for " in that sub-section " (w.e.f. 26.1.1992).], the local authority first mentioned shall not be liable to pay such cess in respect of such water.

Explanation .-For the purposes of this section and section 4, "consumption of water " includes supply of water.