INDIAN ALUMINIUM CO vs STATE OF KERALA

The Supreme Court addressed the legality of the surcharge imposed by the Kerala State Electricity Board under the Kerala Essential Articles Control Act, 1961, following the amendment of the Central Excise and Salt Act, 1944 by Section 36 of the Finance Act, 1978. The Court held that the surcharge constituted a tax on electricity, which the State Government was not authorized to impose as it acted beyond its delegated powers. Consequently, the Court upheld the High Court's decision to issue a writ of mandamus for the refund of the surcharge collected, thereby affirming the principle that a government body cannot levy taxes without explicit legislative authority.