The KERALA ELECTRICITY SURCHARGE (LEVY AND COLLECTION) ACT, 1989

ACT 22 OF 1989
THE KERALA ELECTRICITY SURCHARGE (LEVY AND 
COLLECTION) ACT, 1989*
(Translation in English published under the authority of the Governor)
AN
ACT
to provide for the levy and collection of surcharge on the High Tension and Extra 
High Tension supplies of energy by the Kerala State Electricity Board and for 
the validation of the levy and collection of surcharge made by the Board  
during the period from 1984 onwards.
Preamble.— WHEREAS it is expedient to provide for the levy and collection of
surcharge on the High Tension and Extra High Tension supplies of energy by the
Kerala State Electricity Board and for the validation of the levy and collection of
surcharge made by the Board during the period from 1984 onwards;
BE it enacted in the Fortieth year of the Republic of India as follows:— 
1. Short title, extent and commencement. —(1) This Act may be called the Kerala
Electricity Surcharge (Levy and Collection) Act, 1989.
(2) It extends to the whole of the State of Kerala.
(3)  It  shall  be  deemed  to  have  come  into  force  on  the  1st  day  of
October,1984.
2. Definitions.— (1) In this Act, unless the context otherwise, requires—
(a) “Board”  means  the  Kerala  State  Electricity  Board  constituted  under
*  Received the assent of the Governor on the 15th day of July,1989 and published in the Kerala
Gazette  Extraordinary No. 860  dated 20th September, 1989.
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section 5 of the Electricity (Supply) Act, 1948 (Central Act 55 of 1948) ;
 (b)“bulk supply” means the supply of energy given to,— 
(i) a licensee for the purpose of local distribution in its or in his area
of supply;
(ii) a  consumer  for  industrial  or  for  non-industrial  purposes
contracting  with  a  licensee  for  loads  exceeding  50  KV A  of
maximum demand; and 
(iii) departments of the State or Central Government or undertakings
or  institutions  owned  or  controlled  by  the  State  or  the  Central
Government having a connected load of 50 KV A and above;
(c)  “consumer” includes a local authority, company or other person to
whom energy is supplied by a licensee on payment of charges or otherwise
and a licensee or other person who consumes energy generated by himself,
but does not include a licensee to whom energy is supplied by the Board
for supply to others.
Explanation.— Where any licensee consumes energy generated by
himself or supplied to him by the Board, he shall be deemed to be a
consumer in respect of the energy so consumed except in respect of the
energy consumed by him for purposes connected with the construction,
maintenance  and  operation  for  his  generating,  transmitting  and
distributing systems;
(d) “energy” means electrical energy;
(e)  “extra  high  tension  supply”  means  supply  of  energy  at  a  voltage
exceeding 33,000 volts under normal conditions, subject, however, to the
percentage  variation  indicated  in  the  agreement  between  the
consumer and the Board or allowed by the Indian Electricity Rules,1956;
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(f) “high tension supply” means supply of energy at a voltage of either
22,000 volts or 11,000 volts under normal conditions, subject, however, to
the percentage variation indicated in the agreement between the consumer
and the Board or allowed by the Indian Electricity Rules, 1956;
(g) “licensee” means —
(i) the Board;
(ii) any person licensed under Part II of the Indian Electricity Act,
1910 (Central Act 9 of 1910), to supply energy and includes any person
who is deemed to have been so licensed and any other person who has
obtained the sanction of the Government under section 28 of the said Act;
and
(iii) the Government when it is engaged in the business of supplying
energy;
(h)  “notified  order”  means  an  order  notified  in  the  Gazette;
(i) “prescribed” means prescribed by rules made under this Act.
3. Levy and collection of Surcharge. — (1) Notwithstanding anything to
the contrary contained in any agreement entered into with any consume or the
conditions of service agreed to by the Board, the Government may, by notified
order provide for,—
(a) the levy and collection of a surcharge on all high tension and
extra high tension supplies of energy made by the Board either directly or
through other licensees at such rate not exceeding five paise per unit, as may be
specified therein;
(b) the levy and collection of surcharge on energy supplied to the
States of Karnataka and Tamil Nadu by the Board, at such rate not exceeding
two paise per unit, as may be specified therein;
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(c) the remittance to the Government, of the surcharge collected by
the Board; either directly or through other licensees, and the amount which can
be retained by the Board or such licensees; by way of collection charges;
(d)  the  period  within  which  the  surcharge  collected  by  other
licensees to be remitted to the Board and the rate of interest payable by such
licensees for belated remittance, not exceeding twelve per cent per annum.
(2)  The  Board  or  the  other  licensees receiving  from  the  Board  bulk
supply  of  energy  shall  collect  the  price  for  the  energy  supplied  by  them
inclusive of the surcharge leviable under the notified order.
4. Books of account, etc .— Every licensee shall keep books of account, in
the prescribed form and submit to the Government or to the prescribed officer,
returns in such form and at such times as may be prescribed showing the units
of energy consumed by him or supplied by him to each consumer, as the case
may be, and the amount of surcharge payable thereon and recovered or paid by
him under this Act or showing such other particulars as may be prescribed.
5. Inspecting Officers.— (1) The Government may, by notification in the
Gazette, appoint Inspecting Officers to inspect the books of account required to
be kept by the licensees under section 4.
(2) The Inspecting Officers so appointed shall perform such duties
and exercise such powers as may be prescribed, for the purpose of carrying into
effect the provisions of this Act and the rules made thereunder.
(3) Every such officer shall deemed to be a public servant within
the meaning of section 21 of the Indian Penal Code.
6. Recoveries.— Any sum due on account of surcharge, if not paid at the
time  and  in  the  manner  prescribed,  shall  be  deemed  to  be  in  arrears,  and
thereupon such interest not exceeding twelve per cent per annum which the
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Government may by general or special order fix, shall be payable on such sum;
and the sum, together with any interest thereon, shall be recoverable either
through a Civil Court or as an arrear of land revenue.
7.  Penalties.— (1) If any licensee fails to keep books of account or to
submit returns as required in section 4, he shall be punishable with fine which
may extend to one thousand rupees.
(2)  If  any  licensee  or  other  person  intentionally  obstructs  an
Inspecting Officer appointed under section 5 in the performance of his duties or
in the exercise of his powers under this Act or in the rules made thereunder, he
shall be punishable, with fine, which may extend to one thousand rupees:
Provided that nothing contained in this section shall render any person
liable to be convicted of an offence in respect of anything done or omitted to be
done by him before the date of publication of the Kerala Electricity Surcharge
(Levy and Collection) Ordinance, 1989 (5 of 1989) in the Gazette.
8. Offences by companies.—(1) Where an offence under this Act, has been
committed  by  a  company,  every  person  who,  at  the  time  the  offence  was
committed, was in charge of, and was responsible  to the company for the
conduct of the business of the company, as well as the company, shall be
deemed to be guilty of the offence and shall be liable to be proceeded against
and punished accordingly:
Provided that nothing contained in this sub-section shall render
any such person liable to any punishment provided in this Act if he proves that
the offence was committed without his knowledge or that he exercised all due
diligence to prevent the commission of such offence. 
(2)  Notwithstanding  anything  contained  in  sub-section  (1),  where  an
offence under this Act has been committed by a Company and it is proved that
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the  offence  has  been  committed  with  the  consent  or  connivance  of,  or,  is
attributable to any neglect on the part of any Director, Manager, Secretary or
other  Officer  of  the  Company,  such  Director,  Manager,  Secretary  or  other
Officer shall also be deemed to be guilty of that offence and shall be liable to
be proceeded against and punished accordingly.
Explanation.— For the purposes of this section—
(a)  ‘company’ means  a  body  corporate  and  includes  a  firm  or  other
association of individuals; and 
(b) ‘director’ in relation to a firm means a partner in the firm.
9. Power to make rules .- (1) The Government may, by notification in the
Gazette, make rules to carryout the purposes of this Act.
(2) In particular and  without prejudice to the generality of the
foregoing power, such rules may provide for—
(a) the time and the manner of payment of surcharge under
section 3;
(b) the form of the books of account required to be kept
under section 4;
(c) the time at which, the form in which, and the officers to
whom the returns required by section 4 shall be submitted;
(d)  the  duties  and  powers  of  the  Inspecting  Officers
appointed under section 5.
(3)  In  making  a  rule  under  sub-section  (1)  or  sub-section  (2),  the
Government may provide that a breach thereof shall be punishable with fine
not exceeding one thousand rupees.
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(4) Every rule made under this Act shall be laid, as soon as may be after
it is made, before the Legislative Assembly which is in session for a total
period of fourteen days which may be comprised in one session or in two
successive sessions, and if, before the expiry of the session in which it is so
laid, or the session immediately following, the Legislative Assembly makes any
modification in the rule or decides that the rule should not be made, the rule
shall thereafter have effect only in such modified form or be of no effect, as the
case may be; so however that any such modification or annulment shall be
without prejudice to the validity of anything previously done under that rule.
10.  Protection of action taken in good faith .— No suit, prosecution or
other legal proceeding shall lie against any person for anything which is in
good  faith  done  or  intended  to  be  done  under  this  Act  or  the  rule  made
thereunder.
 11. Validation.— (1) Notwithstanding anything to the contrary contained
in  any  judgment,  decree  or  order  of  any  court,  the  levy  and  collection  of
surcharge by the Board or other licensees on or after the 1 st day of October,
1984 and before the 1 st day of August, 1988 under the Kerala State Electricity
Supply (Kerala State Electricity Board and Licensees Areas) Surcharge Order,
1984 shall be deemed to be, and deemed always to have been validly levied and
collected as if the said order was a notified order under section 3 of this Act;
and accordingly—
(a)  all acts,  proceedings or things done  by the  Board  or  other
licensees in connection with such levy, collection and remittance of surcharge
shall, for all purposes be deemed to be, and deemed always to have been, done
or taken in accordance with this Act;
(b) no suit or other proceeding shall be maintained or continued in
any court for the refund of any such surcharge; and
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(c) no court shall enforce a decree or order directing the refund of
any such surcharge. 
(2) For the removal of doubts it is hereby declared that nothing in sub-
section (1) shall be considered as preventing any person from claiming refund
of any surcharge already paid in excess of the amount due from him under the
order referred to in sub-section (1). 
12. Repeal and Saving .- (1) The Kerala Electricity Surcharge (Levy and
Collection) Ordinance, 1989 (5 of 1989), is hereby repealed.
(2) Notwithstanding such repeal, anything done or deemed to have
been done or any action taken or deemed to have been taken under the said
Ordinance shall be deemed to have been done or taken under this Act.

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