INDIAN ALUMINIUM CO vs STATE OF KERALA — C.A. No. 2770/1996

Case Summary: Indian Aluminium Co. v. State of Kerala Decision: The Supreme Court upheld Kerala's Electricity Surcharge Act (Act 22 of 1989), validating the 2.5 paise per unit surcharge on electricity supplies. The court dismissed appeals by industrial consumers challenging the levy's constitutionality. Key Reasoning: The Court held that "supply" of electricity should be liberally interpreted to encompass "sale or consumption" under Entry 53 of the State List, making the surcharge a valid tax rather than an ultra vires duty. Section 11's retrospective validation provision was constitutional because the legislature competently removed the defect identified in the earlier Chakolas judgment (which had struck down a similar 1984 surcharge order), thereby making the invalidated collections legally binding going forward. This case analysis is maintained by casestatus.in based on publicly available court records.