https://www.taxtmi.com/caselaws?id=458284 The SC upheld policy-based contractual charges for controlled release of water in hydel project agreements, holding that commercial parties who knowingly accepted the arrangement could not characterise the term as unconscionable, manifestly arbitrary, or discriminatory. It also held that the charge was contractual consideration for the privilege and benefit of assured water supply, not a compulsory tax, so the absence of a statutory taxing provision did not defeat it. The Court further upheld the distinction between captive power producers and independent power producers as rationally connected to preventing additional cost burdens on consumers. en-us Mon, 06 Sep 2021 00:00:00 +0530 Fri, 18 Oct 2024 19:52:44 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=458284 The SC upheld policy-based contractual charges for controlled release of water in hydel project agreements, holding that commercial parties who knowingly accepted the arrangement could not characterise the term as unconscionable, manifestly arbitrary, or discriminatory. It also held that the charge was contractual consideration for the privilege and benefit of assured water supply, not a compulsory tax, so the absence of a statutory taxing provision did not defeat it. The Court further upheld the distinction between captive power producers and independent power producers as rationally connected to preventing additional cost burdens on consumers. Case-Laws Indian Laws Mon, 06 Sep 2021 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=458284