Dehradun, April 28 -- Uttarakhand high court on Monday struck down the Uttarakhand Water Tax on Electricity Generation Act, 2012, ruling that the state legislature lacks the authority to levy tax on electricity generation through hydropower projects.

Justice Alok Kumar Verma held that this falls outside the state government's legislative competence, saying such powers vest solely with the Centre.

HT has a copy of the order.

The court order stated, "The question is whether the tax is one on 'drawal of water' for use in electricity generation, or on generation of electricity? The then ..Chief Justice held that the nature of the impugned tax, in pith and substance, is a tax on drawl/ use/ consumption of water for electricity generation, a...