Uttarakhand HC upheld levy of Water Tax on hydropower projects

Alaknanda Hydro Power Co. Ltd. Vs State Of Uttarakhand & Others (Uttarakhand High Court) The Uttarakhand State Government levied tax vide the Uttarakhand Water Tax on Electricity Generation Act, 2012, on hydro power generating companies through river water in the state. The power generating companies aggrieved from the levy of tax challenged the constitutional validity and vires of the aforesaid legislation vide writ petitions. The primary contention of the counsels appearing on behalf of the power companies was the state legislature lacks in the jurisdiction to legislate on the subject ma...