BIHAR STATE EELECTRICITY BOARD vs M/S.PULAK ENTERPRISES .

The Supreme Court upheld the validity of the fuel surcharge levied by the Bihar State Electricity Board under Section 49 of the Electricity (Supply) Act, 1948, affirming that it is a necessary component of the tariff to address increased costs of electricity generation and purchase. The Court reiterated its previous ruling in Bihar State Electricity Board v. Bihar 440 Volt Vidyut Upbhokta Sangh, confirming that the method of calculation of the surcharge is within the Board's authority. The judgment clarified that while the fuel surcharge is valid, the provision for 'other operational surcharge' was deemed arbitrary and struck down.