{"id":4649,"date":"2023-10-29T12:32:59","date_gmt":"2023-10-29T12:32:59","guid":{"rendered":"https:\/\/jammubulletin.com\/site\/?p=4649"},"modified":"2023-10-29T12:32:59","modified_gmt":"2023-10-29T12:32:59","slug":"centre-asks-states-not-to-impose-tax-or-duty-on-power-generation","status":"publish","type":"post","link":"https:\/\/jammubulletin.com\/site\/centre-asks-states-not-to-impose-tax-or-duty-on-power-generation\/","title":{"rendered":"Centre Asks States Not To Impose Tax Or Duty On Power Generation"},"content":{"rendered":"
NEW DELHI, Oct 29:\u00a0 The <\/span>\u00a0Central\u00a0<\/a><\/span>government\u00a0<\/span><\/a><\/span>has\u00a0<\/span>requested\u00a0<\/span><\/span>that\u00a0<\/span>states\u00a0<\/span><\/span>refrain\u00a0<\/span><\/span>from\u00a0<\/span><\/span>imposing\u00a0<\/span><\/span>any\u00a0<\/span>taxes\u00a0<\/span><\/span>or\u00a0<\/span><\/span>duties\u00a0<\/span><\/span>on\u00a0<\/span><\/span>electricity\u00a0<\/span><\/span><\/a>produced\u00a0<\/span>by\u00a0<\/span><\/span>any\u00a0<\/span>source,\u00a0<\/span><\/span>including\u00a0<\/span><\/span>wind,\u00a0<\/span>solar,\u00a0<\/span>hydro,\u00a0<\/span><\/span>or\u00a0<\/span><\/span>coal,\u00a0<\/span><\/span>adding\u00a0<\/span><\/span>that\u00a0<\/span><\/span>doing\u00a0<\/span><\/span>so\u00a0<\/span><\/span>would\u00a0<\/span>be\u00a0<\/span><\/span>unlawful\u00a0<\/span><\/span>and\u00a0<\/span><\/span>unconstitutional.<\/span><\/span><\/span> <\/span><\/span><\/span>In\u00a0<\/span><\/span>a\u00a0<\/span>circular\u00a0<\/span><\/span>published\u00a0<\/span><\/span>on\u00a0<\/span><\/span>October\u00a0<\/span>25,\u00a0<\/span><\/span>the\u00a0<\/span>Union\u00a0<\/span>Ministry\u00a0<\/span><\/span>of\u00a0<\/span><\/span>Power\u00a0<\/span><\/span><\/a>stated\u00a0<\/span><\/span>that\u00a0<\/span>it\u00a0<\/span><\/span>had\u00a0<\/span>been\u00a0<\/span>brought\u00a0<\/span><\/span>to\u00a0<\/span>the\u00a0<\/span><\/span>attention\u00a0<\/span>of\u00a0<\/span><\/span>the\u00a0<\/span>Central\u00a0<\/span>Government\u00a0<\/span><\/a><\/span>that\u00a0<\/span><\/span>several\u00a0<\/span><\/span>State\u00a0<\/span>Governments\u00a0<\/span><\/span>had\u00a0<\/span>placed\u00a0<\/span><\/span>extra\u00a0<\/span>fees\u00a0<\/span><\/span>on\u00a0<\/span><\/span>the\u00a0<\/span>production\u00a0<\/span><\/span>of\u00a0<\/span>electricity\u00a0<\/span><\/span>from\u00a0<\/span><\/span>different\u00a0<\/span>sources,\u00a0<\/span><\/span>purporting\u00a0<\/span><\/span>to\u00a0<\/span>be\u00a0<\/span><\/span>development\u00a0<\/span><\/span>free\/charges\/fund.It\u00a0<\/span><\/span>stated\u00a0<\/span>that\u00a0<\/span><\/span>it\u00a0<\/span>is\u00a0<\/span><\/span>unlawful\u00a0<\/span>and\u00a0<\/span>unconstitutional\u00a0<\/span><\/span>to\u00a0<\/span>impose\u00a0<\/span><\/span>such\u00a0<\/span><\/span>additional\u00a0<\/span>costs\u00a0<\/span><\/span>or\u00a0<\/span><\/span>fees\u00a0<\/span><\/span>in\u00a0<\/span><\/span>the\u00a0<\/span>form\u00a0<\/span><\/span>of\u00a0<\/span><\/span>taxes\u00a0<\/span><\/span>or\u00a0<\/span>duties\u00a0<\/span><\/span>on\u00a0<\/span>the\u00a0production\u00a0<\/span><\/span>of\u00a0<\/span>energy,\u00a0<\/span><\/span>which\u00a0includes\u00a0<\/span><\/span>all\u00a0forms\u00a0<\/span><\/span>of\u00a0<\/span>generation,\u00a0<\/span>including\u00a0<\/span><\/span>nuclear,\u00a0<\/span>solar,\u00a0wind,\u00a0<\/span>and\u00a0<\/span>thermal.<\/span> <\/span><\/span>The\u00a0ministry\u00a0<\/span><\/span>clarified\u00a0<\/span><\/span>the\u00a0<\/span>constitutional\u00a0<\/span>position\u00a0<\/span><\/span>by\u00a0<\/span><\/span>stating\u00a0<\/span><\/span>that\u00a0<\/span>the\u00a0<\/span>VII\u00a0<\/span>Schedule\u00a0<\/span>expressly\u00a0<\/span>states\u00a0<\/span><\/span>the\u00a0authority\u00a0<\/span><\/span>to\u00a0impose\u00a0<\/span><\/span>taxes\u00a0<\/span>and\u00a0<\/span><\/span>charges.<\/span><\/span> The\u00a0<\/span>states’\u00a0<\/span>authority\u00a0<\/span><\/span>to\u00a0<\/span>impose\u00a0<\/span><\/span>taxes\u00a0<\/span>and\u00a0<\/span>duties\u00a0<\/span><\/span>is\u00a0<\/span>listed\u00a0<\/span><\/span>in\u00a0<\/span><\/span>entries\u00a0<\/span><\/span>45\u00a0<\/span><\/span>through\u00a0<\/span><\/span>63\u00a0<\/span>of\u00a0<\/span>List\u00a0II\u00a0<\/span><\/span>of\u00a0<\/span>the\u00a0<\/span><\/span>VII\u00a0<\/span><\/span>Schedule.<\/span> <\/span><\/span>Since\u00a0<\/span><\/span>the\u00a0Central\u00a0<\/span>Government\u00a0<\/span><\/span>has\u00a0<\/span><\/span>residuary\u00a0<\/span><\/span>powers,\u00a0<\/span><\/span>the\u00a0<\/span>State\u00a0<\/span><\/span>Governments\u00a0<\/span><\/span>cannot\u00a0<\/span>impose\u00a0<\/span><\/span>any\u00a0<\/span>taxes\u00a0<\/span><\/span>or\u00a0<\/span><\/span>charges\u00a0<\/span><\/span>that\u00a0<\/span><\/span>are\u00a0<\/span>not\u00a0<\/span><\/span>clearly\u00a0<\/span><\/span>listed\u00a0<\/span>in\u00a0<\/span><\/span>this\u00a0<\/span>list,\u00a0<\/span><\/span>it\u00a0<\/span>stated.<\/span><\/span> <\/span><\/span>The\u00a0states\u00a0<\/span>are\u00a0<\/span>permitted\u00a0<\/span>to\u00a0impose\u00a0<\/span><\/span>taxes\u00a0<\/span>on\u00a0<\/span>the\u00a0sale\u00a0<\/span><\/span>or\u00a0<\/span><\/span>consumption\u00a0<\/span><\/span>of\u00a0<\/span>energy\u00a0<\/span><\/span>within\u00a0<\/span><\/span>their\u00a0<\/span>borders\u00a0<\/span><\/span>per\u00a0<\/span><\/span>Entry-53\u00a0<\/span><\/span>of\u00a0<\/span>the\u00a0<\/span><\/span>List-II\u00a0<\/span><\/span>(State\u00a0<\/span><\/span>List).<\/span><\/span><\/span>This\u00a0<\/span>excludes\u00a0<\/span><\/span>the\u00a0authority\u00a0<\/span><\/span>to\u00a0levy\u00a0<\/span><\/span>any\u00a0fees\u00a0<\/span>or\u00a0charges\u00a0<\/span><\/span>on\u00a0<\/span>the\u00a0production\u00a0<\/span><\/span>of\u00a0<\/span>electricity.<\/span> <\/span><\/span>This\u00a0is\u00a0<\/span>due\u00a0<\/span>to\u00a0<\/span>the\u00a0fact\u00a0<\/span><\/span>that\u00a0<\/span>electricity\u00a0<\/span>produced\u00a0<\/span><\/span>on\u00a0<\/span><\/span>a\u00a0<\/span>state’s\u00a0<\/span>territory\u00a0<\/span><\/span>may\u00a0<\/span>be\u00a0<\/span><\/span>used\u00a0<\/span><\/span>in\u00a0<\/span>other\u00a0<\/span><\/span>states,\u00a0<\/span><\/span>and\u00a0<\/span><\/span>no\u00a0<\/span>state\u00a0<\/span><\/span>has\u00a0<\/span><\/span>the\u00a0<\/span>authority\u00a0<\/span><\/span>to\u00a0impose\u00a0<\/span><\/span>taxes\u00a0<\/span>or\u00a0<\/span>other\u00a0obligations\u00a0<\/span><\/span>on\u00a0<\/span>its\u00a0<\/span>citizens,\u00a0<\/span><\/span>according\u00a0<\/span>to\u00a0<\/span>the\u00a0decision.<\/span><\/span> The\u00a0ministry\u00a0<\/span>continued\u00a0<\/span><\/span>by\u00a0<\/span>saying\u00a0<\/span><\/span>that\u00a0<\/span>where\u00a0<\/span><\/span>a\u00a0<\/span>supply\u00a0<\/span><\/span>of\u00a0<\/span><\/span>products\u00a0<\/span>or\u00a0<\/span>services\u00a0<\/span><\/span>occurs\u00a0<\/span><\/span>outside\u00a0<\/span>of\u00a0<\/span><\/span>a\u00a0<\/span>state,\u00a0<\/span><\/span>Article-286\u00a0<\/span><\/span>of\u00a0<\/span><\/span>the\u00a0<\/span>Constitution\u00a0<\/span><\/span>expressly\u00a0<\/span>forbids\u00a0<\/span><\/span>states\u00a0<\/span><\/span>from\u00a0<\/span><\/span>charging\u00a0<\/span><\/span>any\u00a0<\/span>taxes\u00a0<\/span><\/span>or\u00a0<\/span><\/span>charges\u00a0<\/span><\/span>on\u00a0<\/span>that\u00a0supply.<\/span> <\/span><\/span>Additionally,\u00a0<\/span>taxes\u00a0<\/span>on\u00a0<\/span>the\u00a0sale\u00a0<\/span><\/span>or\u00a0<\/span><\/span>consumption\u00a0<\/span>of\u00a0<\/span>electricity\u00a0<\/span>purchased\u00a0<\/span><\/span>by\u00a0<\/span><\/span>the\u00a0<\/span>Central\u00a0<\/span>Government\u00a0<\/span><\/span>or\u00a0<\/span><\/span>consumed\u00a0<\/span><\/span>by\u00a0<\/span><\/span>it\u00a0<\/span><\/span>for\u00a0<\/span>use\u00a0<\/span><\/span>by\u00a0<\/span><\/span>the\u00a0<\/span>Government\u00a0<\/span><\/span>or\u00a0<\/span><\/span>its\u00a0<\/span>agencies\u00a0<\/span><\/span>are\u00a0<\/span>prohibited\u00a0<\/span><\/span>by\u00a0<\/span>Articles\u00a0<\/span>287\u00a0<\/span>and\u00a0<\/span>288.<\/span><\/span><\/span>The\u00a0directives\u00a0<\/span><\/span>said\u00a0<\/span>that\u00a0<\/span><\/span>no\u00a0<\/span>state\u00a0<\/span><\/span>might\u00a0<\/span>impose\u00a0<\/span><\/span>taxes\u00a0<\/span><\/span>or\u00a0<\/span><\/span>levies\u00a0<\/span><\/span>on\u00a0<\/span><\/span>electricity\u00a0<\/span>generation\u00a0<\/span><\/span>or\u00a0<\/span><\/span>interstate\u00a0<\/span><\/span>delivery\u00a0<\/span><\/span>under\u00a0<\/span>the\u00a0<\/span><\/span>pretence\u00a0<\/span><\/span>of\u00a0<\/span><\/span>charging\u00a0<\/span><\/span>more\u00a0<\/span>or\u00a0<\/span><\/span>offering\u00a0<\/span><\/span>a\u00a0<\/span>free\u00a0<\/span>service\u00a0<\/span><\/span>for\u00a0<\/span><\/span>electricity\u00a0<\/span><\/span>generated\u00a0<\/span>from\u00a0<\/span><\/span>any\u00a0<\/span>source,\u00a0<\/span><\/span>including\u00a0<\/span><\/span>renewables,\u00a0<\/span><\/span>hydropower,\u00a0<\/span><\/span>or\u00a0<\/span><\/span>thermal\u00a0<\/span>energy,\u00a0<\/span><\/span>in\u00a0<\/span>accordance\u00a0<\/span><\/span>with\u00a0<\/span><\/span>the\u00a0requirements\u00a0<\/span><\/span>of\u00a0the\u00a0<\/span>constitution.<\/span> <\/span><\/span>The\u00a0federal\u00a0<\/span>government\u00a0<\/span>requested\u00a0<\/span><\/span>that\u00a0<\/span>states\u00a0<\/span>immediately\u00a0<\/span><\/span>eliminate\u00a0<\/span><\/span>any\u00a0taxes,\u00a0<\/span><\/span>duties,\u00a0<\/span><\/span>or\u00a0<\/span><\/span>fees\u00a0<\/span><\/span>imposed\u00a0<\/span><\/span>under\u00a0<\/span><\/span>the\u00a0<\/span>pretence\u00a0<\/span><\/span>of\u00a0<\/span><\/span>funding\u00a0<\/span><\/span>for\u00a0<\/span><\/span>the\u00a0<\/span>generation\u00a0<\/span><\/span>of\u00a0<\/span>power\u00a0<\/span><\/span>from\u00a0<\/span>whatever\u00a0<\/span><\/span>source.<\/span> The\u00a0Ministry\u00a0<\/span>had\u00a0requested\u00a0<\/span><\/span>in\u00a0April\u00a0<\/span>that\u00a0<\/span>states\u00a0<\/span>refrain\u00a0<\/span><\/span>from\u00a0<\/span><\/span>levying\u00a0<\/span><\/span>any\u00a0<\/span>taxes\u00a0<\/span><\/span>or\u00a0<\/span><\/span>duties\u00a0<\/span><\/span>on\u00a0<\/span><\/span>electricity\u00a0<\/span>generation,\u00a0<\/span><\/span>particularly\u00a0<\/span>from\u00a0<\/span>hydroelectric\u00a0<\/span>projects.<\/span> <\/span><\/span>Under\u00a0<\/span>the\u00a0pretence\u00a0<\/span><\/span>of\u00a0<\/span>imposing\u00a0<\/span><\/span>a\u00a0<\/span>cess\u00a0<\/span><\/span>on\u00a0<\/span><\/span>the\u00a0<\/span>use\u00a0<\/span><\/span>of\u00a0<\/span>water\u00a0<\/span><\/span>for\u00a0<\/span><\/span>electricity\u00a0generation,\u00a0<\/span>many\u00a0<\/span>states\u00a0<\/span>have\u00a0levied\u00a0<\/span><\/span>taxes\u00a0<\/span>or\u00a0<\/span>levies\u00a0<\/span><\/span>on\u00a0<\/span>the\u00a0production\u00a0<\/span><\/span>of\u00a0<\/span>electricity.<\/span><\/span><\/span>However,\u00a0<\/span>the\u00a0power\u00a0<\/span>ministry\u00a0<\/span>had\u00a0stated\u00a0<\/span><\/span>on\u00a0<\/span>April\u00a0<\/span>25\u00a0<\/span><\/span>that\u00a0<\/span><\/span>“even\u00a0<\/span>though\u00a0<\/span><\/span>the\u00a0<\/span>state\u00a0<\/span><\/span>may\u00a0<\/span>call\u00a0<\/span><\/span>it\u00a0<\/span><\/span>a\u00a0<\/span>water\u00a0<\/span><\/span>cess,\u00a0<\/span><\/span>it\u00a0<\/span><\/span>is\u00a0<\/span>actually\u00a0<\/span><\/span>a\u00a0<\/span>tax\u00a0<\/span><\/span>on\u00a0<\/span><\/span>the\u00a0<\/span>generation\u00a0<\/span><\/span>of\u00a0<\/span><\/span>electricity-the\u00a0<\/span><\/span>tax\u00a0<\/span><\/span>is\u00a0<\/span><\/span>to\u00a0<\/span>be\u00a0<\/span><\/span>collected\u00a0<\/span>from\u00a0<\/span><\/span>the\u00a0<\/span>consumers\u00a0<\/span><\/span>of\u00a0<\/span>electricity\u00a0<\/span><\/span>who\u00a0<\/span><\/span>may\u00a0<\/span>happen\u00a0<\/span>to\u00a0<\/span>be\u00a0<\/span><\/span>residents\u00a0<\/span><\/span>in\u00a0<\/span>other\u00a0<\/span><\/span>states.”<\/span><\/span> <\/span><\/span>It\u00a0<\/span><\/span>said\u00a0<\/span>that\u00a0<\/span><\/span>any\u00a0<\/span>tax\u00a0<\/span><\/span>imposed\u00a0<\/span><\/span>on\u00a0<\/span>the\u00a0<\/span><\/span>non-consumptive\u00a0<\/span><\/span>usage\u00a0<\/span><\/span>of\u00a0these\u00a0<\/span>rivers’\u00a0<\/span>water\u00a0<\/span>for\u00a0<\/span>the\u00a0production\u00a0<\/span><\/span>of\u00a0power\u00a0<\/span><\/span>would\u00a0<\/span>be\u00a0<\/span><\/span>unconstitutional.<\/span><\/span> The\u00a0ministry\u00a0<\/span>had\u00a0claimed\u00a0<\/span><\/span>that\u00a0<\/span>hydroelectric\u00a0projects\u00a0<\/span>don’t\u00a0<\/span>use\u00a0<\/span><\/span>water\u00a0<\/span><\/span>to\u00a0<\/span>generate\u00a0<\/span><\/span>electricity,\u00a0<\/span><\/span>noting\u00a0<\/span><\/span>that\u00a0<\/span><\/span>the\u00a0majority\u00a0<\/span><\/span>of\u00a0them\u00a0<\/span>are\u00a0situated\u00a0<\/span><\/span>on\u00a0<\/span>interstate\u00a0<\/span>rivers.<\/span> <\/span><\/span>Similar\u00a0<\/span><\/span>to\u00a0<\/span>how\u00a0<\/span><\/span>energy\u00a0<\/span><\/span>from\u00a0<\/span><\/span>wind\u00a0<\/span>projects\u00a0<\/span><\/span>is\u00a0<\/span>produced,\u00a0<\/span><\/span>electricity\u00a0<\/span><\/span>is\u00a0<\/span>produced\u00a0<\/span><\/span>by\u00a0<\/span><\/span>guiding\u00a0<\/span><\/span>the\u00a0<\/span>flow\u00a0<\/span><\/span>of\u00a0<\/span>water\u00a0<\/span><\/span>via\u00a0<\/span><\/span>a\u00a0<\/span>turbine.\u00a0<\/span><\/span>The\u00a0<\/span>wind\u00a0<\/span><\/span>is\u00a0used\u00a0<\/span><\/span>to\u00a0<\/span>turn\u00a0<\/span><\/span>the\u00a0<\/span>turbine,\u00a0<\/span><\/span>producing\u00a0<\/span><\/span>power.<\/span><\/span> <\/span><\/span>As\u00a0<\/span><\/span>a\u00a0result,\u00a0<\/span><\/span>the\u00a0ministry\u00a0<\/span>declared\u00a0<\/span><\/span>that\u00a0<\/span>there\u00a0was\u00a0<\/span><\/span>no\u00a0justification\u00a0<\/span><\/span>for\u00a0<\/span>imposing\u00a0<\/span><\/span>an\u00a0<\/span><\/span>air\u00a0<\/span>or\u00a0<\/span>water\u00a0<\/span><\/span>cess.<\/span><\/span> <\/span><\/span><\/span><\/span><\/span><\/span><\/div>\n
\n
\"Centre
Centre Asks States Not To Impose Tax Or Duty On Power Generation<\/figcaption><\/figure>\n<\/div>\n
<\/div>\n","protected":false},"excerpt":{"rendered":"

NEW DELHI, Oct 29:\u00a0 The \u00a0Central\u00a0government\u00a0has\u00a0requested\u00a0that\u00a0states\u00a0refrain\u00a0from\u00a0imposing\u00a0any\u00a0taxes\u00a0or\u00a0duties\u00a0on\u00a0electricity\u00a0produced\u00a0by\u00a0any\u00a0source,\u00a0including\u00a0wind,\u00a0solar,\u00a0hydro,\u00a0or\u00a0coal,\u00a0adding\u00a0that\u00a0doing\u00a0so\u00a0would\u00a0be\u00a0unlawful\u00a0and\u00a0unconstitutional. In\u00a0a\u00a0circular\u00a0published\u00a0on\u00a0October\u00a025,\u00a0the\u00a0Union\u00a0Ministry\u00a0of\u00a0Power\u00a0stated\u00a0that\u00a0it\u00a0had\u00a0been\u00a0brought\u00a0to\u00a0the\u00a0attention\u00a0of\u00a0the\u00a0Central\u00a0Government\u00a0that\u00a0several\u00a0State\u00a0Governments\u00a0had\u00a0placed\u00a0extra\u00a0fees\u00a0on\u00a0the\u00a0production\u00a0of\u00a0electricity\u00a0from\u00a0different\u00a0sources,\u00a0purporting\u00a0to\u00a0be\u00a0development\u00a0free\/charges\/fund.It\u00a0stated\u00a0that\u00a0it\u00a0is\u00a0unlawful\u00a0and\u00a0unconstitutional\u00a0to\u00a0impose\u00a0such\u00a0additional\u00a0costs\u00a0or\u00a0fees\u00a0in\u00a0the\u00a0form\u00a0of\u00a0taxes\u00a0or\u00a0duties\u00a0on\u00a0the\u00a0production\u00a0of\u00a0energy,\u00a0which\u00a0includes\u00a0all\u00a0forms\u00a0of\u00a0generation,\u00a0including\u00a0nuclear,\u00a0solar,\u00a0wind,\u00a0and\u00a0thermal. The\u00a0ministry\u00a0clarified\u00a0the\u00a0constitutional\u00a0position\u00a0by\u00a0stating\u00a0that\u00a0the\u00a0VII\u00a0Schedule\u00a0expressly\u00a0states\u00a0the\u00a0authority\u00a0to\u00a0impose\u00a0taxes\u00a0and\u00a0charges. The\u00a0states’\u00a0authority\u00a0to\u00a0impose\u00a0taxes\u00a0and\u00a0duties\u00a0is\u00a0listed\u00a0in\u00a0entries\u00a045\u00a0through\u00a063\u00a0of\u00a0List\u00a0II\u00a0of\u00a0the\u00a0VII\u00a0Schedule. Since\u00a0the\u00a0Central\u00a0Government\u00a0has\u00a0residuary\u00a0powers,\u00a0the\u00a0State\u00a0Governments\u00a0cannot\u00a0impose\u00a0any\u00a0taxes\u00a0or\u00a0charges\u00a0that\u00a0are\u00a0not\u00a0clearly\u00a0listed\u00a0in\u00a0this\u00a0list,\u00a0it\u00a0stated. The\u00a0states\u00a0are\u00a0permitted\u00a0to\u00a0impose\u00a0taxes\u00a0on\u00a0the\u00a0sale\u00a0or\u00a0consumption\u00a0of\u00a0energy\u00a0within\u00a0their\u00a0borders\u00a0per\u00a0Entry-53\u00a0of\u00a0the\u00a0List-II\u00a0(State\u00a0List).This\u00a0excludes\u00a0the\u00a0authority\u00a0to\u00a0levy\u00a0any\u00a0fees\u00a0or\u00a0charges\u00a0on\u00a0the\u00a0production\u00a0of\u00a0electricity. This\u00a0is\u00a0due\u00a0to\u00a0the\u00a0fact\u00a0that\u00a0electricity\u00a0produced\u00a0on\u00a0a\u00a0state’s\u00a0territory\u00a0may\u00a0be\u00a0used\u00a0in\u00a0other\u00a0states,\u00a0and\u00a0no\u00a0state\u00a0has\u00a0the\u00a0authority\u00a0to\u00a0impose\u00a0taxes\u00a0or\u00a0other\u00a0obligations\u00a0on\u00a0its\u00a0citizens,\u00a0according\u00a0to\u00a0the\u00a0decision. The\u00a0ministry\u00a0continued\u00a0by\u00a0saying\u00a0that\u00a0where\u00a0a\u00a0supply\u00a0of\u00a0products\u00a0or\u00a0services\u00a0occurs\u00a0outside\u00a0of\u00a0a\u00a0state,\u00a0Article-286\u00a0of\u00a0the\u00a0Constitution\u00a0expressly\u00a0forbids\u00a0states\u00a0from\u00a0charging\u00a0any\u00a0taxes\u00a0or\u00a0charges\u00a0on\u00a0that\u00a0supply. Additionally,\u00a0taxes\u00a0on\u00a0the\u00a0sale\u00a0or\u00a0consumption\u00a0of\u00a0electricity\u00a0purchased\u00a0by\u00a0the\u00a0Central\u00a0Government\u00a0or\u00a0consumed\u00a0by\u00a0it\u00a0for\u00a0use\u00a0by\u00a0the\u00a0Government\u00a0or\u00a0its\u00a0agencies\u00a0are\u00a0prohibited\u00a0by\u00a0Articles\u00a0287\u00a0and\u00a0288.The\u00a0directives\u00a0said\u00a0that\u00a0no\u00a0state\u00a0might\u00a0impose\u00a0taxes\u00a0or\u00a0levies\u00a0on\u00a0electricity\u00a0generation\u00a0or\u00a0interstate\u00a0delivery\u00a0under\u00a0the\u00a0pretence\u00a0of\u00a0charging\u00a0more\u00a0or\u00a0offering\u00a0a\u00a0free\u00a0service\u00a0for\u00a0electricity\u00a0generated\u00a0from\u00a0any\u00a0source,\u00a0including\u00a0renewables,\u00a0hydropower,\u00a0or\u00a0thermal\u00a0energy,\u00a0in\u00a0accordance\u00a0with\u00a0the\u00a0requirements\u00a0of\u00a0the\u00a0constitution. The\u00a0federal\u00a0government\u00a0requested\u00a0that\u00a0states\u00a0immediately\u00a0eliminate\u00a0any\u00a0taxes,\u00a0duties,\u00a0or\u00a0fees\u00a0imposed\u00a0under\u00a0the\u00a0pretence\u00a0of\u00a0funding\u00a0for\u00a0the\u00a0generation\u00a0of\u00a0power\u00a0from\u00a0whatever\u00a0source. The\u00a0Ministry\u00a0had\u00a0requested\u00a0in\u00a0April\u00a0that\u00a0states\u00a0refrain\u00a0from\u00a0levying\u00a0any\u00a0taxes\u00a0or\u00a0duties\u00a0on\u00a0electricity\u00a0generation,\u00a0particularly\u00a0from\u00a0hydroelectric\u00a0projects. Under\u00a0the\u00a0pretence\u00a0of\u00a0imposing\u00a0a\u00a0cess\u00a0on\u00a0the\u00a0use\u00a0of\u00a0water\u00a0for\u00a0electricity\u00a0generation,\u00a0many\u00a0states\u00a0have\u00a0levied\u00a0taxes\u00a0or\u00a0levies\u00a0on\u00a0the\u00a0production\u00a0of\u00a0electricity.However,\u00a0the\u00a0power\u00a0ministry\u00a0had\u00a0stated\u00a0on\u00a0April\u00a025\u00a0that\u00a0“even\u00a0though\u00a0the\u00a0state\u00a0may\u00a0call\u00a0it\u00a0a\u00a0water\u00a0cess,\u00a0it\u00a0is\u00a0actually\u00a0a\u00a0tax\u00a0on\u00a0the\u00a0generation\u00a0of\u00a0electricity-the\u00a0tax\u00a0is\u00a0to\u00a0be\u00a0collected\u00a0from\u00a0the\u00a0consumers\u00a0of\u00a0electricity\u00a0who\u00a0may\u00a0happen\u00a0to\u00a0be\u00a0residents\u00a0in\u00a0other\u00a0states.” It\u00a0said\u00a0that\u00a0any\u00a0tax\u00a0imposed\u00a0on\u00a0the\u00a0non-consumptive\u00a0usage\u00a0of\u00a0these\u00a0rivers’\u00a0water\u00a0for\u00a0the\u00a0production\u00a0of\u00a0power\u00a0would\u00a0be\u00a0unconstitutional. The\u00a0ministry\u00a0had\u00a0claimed\u00a0that\u00a0hydroelectric\u00a0projects\u00a0don’t\u00a0use\u00a0water\u00a0to\u00a0generate\u00a0electricity,\u00a0noting\u00a0that\u00a0the\u00a0majority\u00a0of\u00a0them\u00a0are\u00a0situated\u00a0on\u00a0interstate\u00a0rivers. Similar\u00a0to\u00a0how\u00a0energy\u00a0from\u00a0wind\u00a0projects\u00a0is\u00a0produced,\u00a0electricity\u00a0is\u00a0produced\u00a0by\u00a0guiding\u00a0the\u00a0flow\u00a0of\u00a0water\u00a0via\u00a0a\u00a0turbine.\u00a0The\u00a0wind\u00a0is\u00a0used\u00a0to\u00a0turn\u00a0the\u00a0turbine,\u00a0producing\u00a0power. As\u00a0a\u00a0result,\u00a0the\u00a0ministry\u00a0declared\u00a0that\u00a0there\u00a0was\u00a0no\u00a0justification\u00a0for\u00a0imposing\u00a0an\u00a0air\u00a0or\u00a0water\u00a0cess.<\/p>\n","protected":false},"author":2,"featured_media":4650,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[6,67,89],"tags":[],"class_list":["post-4649","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-header","category-national"],"gutentor_comment":1,"yoast_head":"\nCentre Asks State Not To Impose Tax Or Duty On PowerGeneration<\/title>\n<meta name=\"description\" content=\"The\u00a0Central\u00a0government\u00a0\u00a0has\u00a0requested\u00a0that\u00a0states\u00a0refrain\u00a0from\u00a0imposing\u00a0any\u00a0taxes\u00a0or\u00a0duties\u00a0on\u00a0electricity\u00a0produced\u00a0by\u00a0any\u00a0source,\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/jammubulletin.com\/site\/centre-asks-states-not-to-impose-tax-or-duty-on-power-generation\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Centre Asks State Not To Impose Tax Or Duty On PowerGeneration\" \/>\n<meta property=\"og:description\" content=\"The\u00a0Central\u00a0government\u00a0\u00a0has\u00a0requested\u00a0that\u00a0states\u00a0refrain\u00a0from\u00a0imposing\u00a0any\u00a0taxes\u00a0or\u00a0duties\u00a0on\u00a0electricity\u00a0produced\u00a0by\u00a0any\u00a0source,\" 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