IASH Journal- International Association for Small Hydro
Year : 2023, Volume : 12, Issue : 1
First page : ( 11) Last page : ( 12)
Print ISSN : 2250-0103. Online ISSN : 2250-0111.

Exploring the legality of the Himachal water cess

Subhalakshmy Ananth Krishna

Online published on 26 September, 2023.

Abstract

The Himachal Pradesh (HP) High Court is due to hear the challenges to the Himachal Pradesh Water Cess on Hydro Power Generation Bill, 2023, having already issued notices to the Centre and State on-the matter, and listed to hear the matter at the end of this month. The enactment of the Himachal Pradesh Water Cess on Hydro Power Generation Bill, 2023 which imposes a cess on the water used for electricity generation presents a unique legal issue on the powers of taxation-that is yet to be settled. The Himachal Pradesh (HP) High Court is due to hear the challenges to the Act, having already issued notices to the Centre and State on the matter, and listed to hear the matter at the end of this month. The petitioner, a private hydroelectric power operator, contends that the cess is illegal-and unconstitutional as it violates Article 288 of the Constitution. The challenge will also involve the legislative competence of the HP Legislature to enact the cess and-the interaction with Inter-State Water Disputes Act. Considering the Central Government has already issued a communique opposing the cess, the Centre will maintain the same stand in the High Court. The Himachal High Court will be not without precedent, as the Uttarakhand High Court decided a challenge-to an identical water cess in Alaknanda Hydro Power v. State of Uttarakhand (2021). An analysis of the-same will indicate the arguments the Himachal High Court will have to consider.

Top