Srinagar, Oct. 30 -- The High Court of Jammu & Kashmir and Ladakh on Thursday struck down provisions of the Jammu and Kashmir Water Resources (Regulation and Management) Act, 2010, to the extent they impose water usage charges on hydropower projects, holding that the levy tax on electricity generation was beyond the legislative competence of the erstwhile state of Jammu and Kashmir.

A Division Bench comprising Justice Sanjay Dhar and Justice Rajnesh Oswal allowed three connected writ petitions filed by independent power producers, quashed the demand notices issued against them and restrained the authorities from imposing any tax on electricity generation under the guise of water usage charges or any other tax.

The petitions were filed b...