HC sets aside GO on cess on water use by industries
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Holding that nothing will be realised by approach of tax or something akin thereto which has not been authorised by the legislature, the Kerala High Court has set aside a 2009 authorities order imposing cess on industries for extracting water from rivers for industrial use.
Justice N. Nagaresh handed the decision whereas permitting writ petitions filed by FACT and two personal corporations in opposition to levying of cess on use of water from rivers for industrial use.
The courtroom noticed that Article 265 of the Constitution of India gives that no tax shall be levied or collected besides by the authority of legislation. Tax, responsibility, cess, or price have been levied by the State authorities to boost income for the State. In reality, every expression denoted completely different sorts of “imposts” relying on the aim for which they have been levied. This energy may very well be exercised in any of its manifestations solely underneath any legislation authorising levy and assortment of tax as envisaged underneath Article 265.
Right to manage use
The courtroom famous that part 3 of the Kerala Irrigation and Water Conservation Act, 2003, offered that the State authorities was entitled to preserve and regulate the use of such watercourses and water in all such watercourses. As energy was conferred on the State authorities to manage watercourses for the aim of irrigation and water conservation, the federal government could be completely inside its powers to manage or curb lifting of water from such watercourses for industrial functions, as unrestricted utilization of water for industrial functions may adversely have an effect on the supply of ample amount of water for irrigation goal.
However, “the impost of tax/cess/fee/rate” stands on a special footing. The govt couldn’t levy tax. To assist a tax, legislative sanction was important. It can’t be levied and picked up within the absence of any legislative sanction, by train of govt energy of the State underneath Article 162. A statutory supply of energy was missing within the current case, the courtroom noticed.
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