Srinagar, Oct. 30 -- The Jammu and Kashmir and Ladakh High Court has struck down water usage charges imposed on hydropower projects, ruling that the erstwhile state legislature lacked the power to tax electricity generation.
A Division Bench of Justice Sanjay Dhar and Justice Rajnesh Oswal on Thursday quashed demand notices issued to power producers and restrained the government from imposing any tax on electricity generation under the guise of water usage charges or any other levy.
The ruling came on three petitions filed by independent power producers challenging charges imposed under the Jammu and Kashmir Water Resources (Regulation and Management) Act, 2010, and the rules framed under it.
The petitioners included 11 companies allotte...