Surcharge - Definition - Law Dictionary Home Dictionary Definition surcharge

Definition :

Surcharge, an overcharge of what is just and right; exceeding one's powers or privileges; a declaration by an auditor that a person is personally liable to refund a particular part of public money illegally expended by him [see, e.g. the Public Health Act, 1875, s. 247 (7)]; a second or further mortgage. See AUDIT.

1. An additional tax, charge, or cost usu. one that is excessive 2. An additional load or burden, Black's Law Dictionary, 7th Edn.

The expression 'surcharge' in the context of taxation means an additional imposition which results in enhancement of the tax and the nature of the additional imposition is the same as the tax on which it is imposed as surcharge. A surcharge on land revenue is an enhancement of the land revenue to the extent of the imposition of surcharge. The nature of such imposition is the same viz., land revenue on which it is a charge, Sarojini Tea Co. (P) Ltd. v. Collector of Dibrugarh, AIR 1992 SC 1264 (1269): (1992) 2 SCC 156. [Assam Land Revenue and Land (Surcharge) Act, 1970, s. 3]

The word surcharge is not defined in the Act, but etymologically inter alia, surcharge stands for an additional or extra charge or payment (see Shorter Oxford English Dictionary). Surcharge is thus a super -- added charge, a charge over and above the usual or current dues. It is in substance an addition to the stipulated rates of tariff, Bisra Stone Lime Co. Ltd. v. Orissa State Electricity Board, AIR 1976 SC 127 (130). [Electricity (Supply) Act (54 of 1948), s. 49]

The word 'surcharge' means an additional or extra charge or payment, Delhi Cloth and General Mills Co. Ltd. v. Rajasthan, AIR 1986 SC 1126 (1145): (1986) 2 SCC 431.

Surcharge, is to charge in addition or to subject to an additional or extra charge, Commissioner of Income Tax v. K. Srinivasan, AIR 1972 SC 491.