S. 12AA : Procedure for registration-Trust or institution-Plastic Waste Management-Preservation of Environment as defined in Section 2(15) of the Act-Eligible for exemption-Denial of registration is not valid. [S. 2(15), 11, 12A, 12AA(1)(b)(ii), Form No. 10A, Constitution of India Art, 14, 19 and 21, 47, 48-A, 51-A(g), Environment (Protection) Act, 1986, the Water (Prevention and Control of Pollution) Act, 1974, the Air (Prevention and Control of Pollution), Act 1981]
Assessee is engaged in Plastic Waste Management. The Assessee society was formed with the main aims and objects to set up a mechanism for collection, transportation, treatment & disposal of plastic material, especially multilayered plastic pouches, thermocol packing & utility items (polystyrene products) in environmentally sound and safe methods / technologies; etc. The ld. CIT(E), rejected the Assessee’s application for registration, referring only only a few clauses mentioned in the Assessee’s bye-laws and aims and objectives. ld. CIT(E) has adopted a pick and choose method to deny registration to the Assessee without looking at the picture in a holistic manner. On appeal the Honourable Tribunal Referred the various Article of the Constitution of India, various provision of the Environment Act and importance of preservation of the environment and duties of the citizens. Allowing the Registration the Honourable Bench by their well considered and reasoned order, summarised the conclusion as under;
1. The Punjab Pollution Control Board is a creature of Legislation in the form of the Plastic Waste Management Rules, 2016, particularly Rule 12 and Schedule–II, containing the Guidelines with regard to the plastic waste management under the Extended Producer’s Responsibility for Plastic Packaging and duties and functions of the State Pollution Control Boards.
2. In view of the above, there is nothing wrong in the factum of all the powers having been vested with the Punjab Pollution Control Board. Rather, this is in furtherance of the requirement of the Plastic Waste Management Rules, 2016.
3. The Bye-laws of the Assessee society are entirely in keeping with its Memorandum of Association which, in turn, is well within the four corners of the Plastic Waste Management Rules, 2016.
4. The aims and objects of the Assessee society are not restrictive in nature. Rather, as per requirement of the Plastic Waste Management Rules, they are centered towards the implementation of the preservation of the environment purpose of plastic waste management under the aegis of the Punjab Pollution Control Board. It is out of sheer ignorance of the law that the ld. CIT(E) has held that the Assessee society, as per its bye-laws, is meant to be run as a one man show and not as a public charity.
5. Apropos the finding of the ld. CIT(E) that none of the activities of the Assessee society is covered by any limb of ‘charitable purpose’, as envisaged by section 2(15) of the I.T. Act, we find that not only one, but all the objectives of the Assessee society are directly covered by the limb of preservation of the environment as a ‘Charitable Purpose’ under the provisions of section 2(15) of the I.T. Act.
6. Expenditure of multi-layered plastic collection and disposal charges for members are the only major expenses incurred by the Assessee society. Considering its sole object of plastic waste management, obviously, there cannot be any other major expenditure attributable to the objects of the Assessee society. The factum of this major expenditure does not take away from the prevailing fact that the objects of the Assessee society are charitable objects and its activities are with regard to the Members of the society only, strictly as per the requirements of the scheme of plastic waste management under the Plastic Waste Management Rules, 2016, as amended from time to time.
7. The ld. CIT (E) is again wrong in observing the objects of the Assessee society to be merely ostensible charitable objects. All the objects of the Assessee society, taken either individually, or collectively, are directed towards the Assessee’s charitable object of preservation of the environment.
8. The ld. CIT(E) has also erred in holding that the activity of the Assessee society does not enure for the public at large. It cannot be over stressed that the object of plastic waste management under the Plastic Waste Management Rules, 2016 is nothing other than an activity substantially and wholly enuring for one and all, so that the basic purpose of preservation of the environment is fulfilled so far as regards the pollution caused by plastic.
9. The National Green Tribunal as well as the Hon’ble Supreme Court, besides the High Courts of the country are repeatedly laying down law favouring plastic waste management as a measure for the preservation of the environment, enuring for the public at large.
Accordingly the appeal of the assessee was allowed and the Revenue was directed to grant the Registration. (ITA No. 17/CHD/2020 dt. 14-7-2023) (AY. 2019 -20)
Punjab Plastic Waste Management Society v. CIT(E) (Chd.)(Trib.) www.itatonline.org
[Coram : Hon’ble Shri A.D. Jain, Vice President & Hon’ble Shri Vikram Singh Yadav, Accountant Member]