https://www.taxtmi.com/caselaws?id=450804 A levy described as a water cess on hydropower projects was treated in substance as a tax on electricity generation because the charging scheme and rate fixation were linked to project head and generating potential, not to water drawn. The Court held that the State lacked legislative competence to impose such a levy under the relevant constitutional entries, and that the measure also burdened inter-State electricity supply impermissibly. It further found excessive delegation because the Act left rate fixation and the tax base to executive notification without adequate legislative policy or guidance. The levy, related rules and notices were struck down and the amounts collected were ordered to be refunded. en-us Tue, 05 Mar 2024 00:00:00 +0530 Wed, 13 Mar 2024 12:55:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=450804 A levy described as a water cess on hydropower projects was treated in substance as a tax on electricity generation because the charging scheme and rate fixation were linked to project head and generating potential, not to water drawn. The Court held that the State lacked legislative competence to impose such a levy under the relevant constitutional entries, and that the measure also burdened inter-State electricity supply impermissibly. It further found excessive delegation because the Act left rate fixation and the tax base to executive notification without adequate legislative policy or guidance. The levy, related rules and notices were struck down and the amounts collected were ordered to be refunded. Case-Laws Indian Laws Tue, 05 Mar 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=450804