SRINAGAR, Oct 29: The High Court declared the levy of water usage charges on hydropower projects under the Jammu and Kashmir Water Resources (Regulation and Management) Act, 2010 as unconstitutional.
The Division Bench of Justice Sanjay Dhar and Justice Rajnesh Oswal allowed three writ petitions filed by independent power producers, declaring the impugned provisions unconstitutional to the extent they authorised the levy of water usage charges on hydropower projects.
The court quashed the demand notices issued against the petitioners and restrained the J&K government from imposing any tax on electricity generation under the guise of water usage charges or any other tax.
The court has ruled that the charges were, in substance, a tax on electricity generation that the erstwhile state legislature lacked the competence to impose such charges.
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