PART XII CHAPTER I.-FINANCE Miscellaneous Financial Provisions 288. Exemption from taxation by States in respect of water or electricity in certain cases.- (1) Save in so far as the President may
by order otherwise provide, no law of a State in force immediately
before the commencement of this Constitution shall impose, or
authorise the imposition of, a tax in respect of any water or
electricity stored, generated, consumed, distributed or sold by any
authority established by any existing law or any law made by
Parliament for regulating or developing any inter-State river or
river-valley. Explanation.- The expression "law of a State in force" in this clause
shall include a law of a State passed or made before the commencement
of this Constitution and not previously repealed, notwithstanding that
it or parts of it may not be then in operation either at all or in
particular areas. (2) The Legislature of a State may by law impose, or authorise the
imposition of, any such tax as is mentioned in clause (1), but no such
law shall have any effect unless it has, after having been reserved
for the consideration of the President, received his assent; and if
any such law provides for the fixation of the rates and other
incidents of such tax by means of rules or orders to be made under the
law by any authority, the law shall provide for the previous consent
of the President being obtained to the making of any such rule or
order.
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