Sudhanshu Dhulia, J. (Oral):— The petitioner claims to be a Company registered under the Companies Act, 1956 having its Registered Office at 16 Green Avenue, Vasant Kunj, New Delhi.
2. Petitioner has entered into a Memorandum of Understanding with the State Government for setting up 22.5 Mega Watt power project in the State of Uttarakhand. The project, as of now has been set up and is generating electricity in the Small Hydro Power Project.
3. The petitioner has challenged the vires of the Act which is known as Uttarakhand Water Tax on Electricity Generation Act, 2012. By the said Act, a tax has been imposed on water being used by the petitioner for generation of electricity.
4. According to the petitioner, it is not within the powers of State Government to impose such a tax as the tax can only be imposed by the Central Government. However, there is no pleading to this effect. The only pleading is that since it has not been specifically mentioned it will go in the residuary clause.
5. Learned State counsel, on the other hand has drawn the attention of this Court to Subject No. 17 which is “water” in the State List.
6. In any case, there is a presumption in favour of the Legislation. Efforts have been made by the petitioner to get an interim order from this Court saying that protection be given and no coercive measures be adopted against the petitioner.
7. There can be no kind of stay against a Legislation, particularly where it is a fiscal legislation. This Court is not inclined to grant any interim order in favour of the petitioner at this juncture.
8. Three weeks' time is granted to the respondents to file counter affidavit.
9. List this matter after four weeks on 31.08.2016 in the daily cause list along with WPMS Nos. 187 of 2016, 1500 of 2016 & 272 of 2016.