Escientia Advanced Sciences Private Limited vs. The State Of Ap

Held

The Court allowed the writ petition, holding that the issue was squarely covered by the Order of the Hon'ble Division Bench in W.P.No.29672 of 2023 and batch dated 26.06.2025. The Division Bench had struck down G.O.Ms.No.7 dated 08.04.2022. Consequently, the respondents were disentitled from levying electricity duty at the rate of one rupee per unit of sales. The Court directed that the present writ petition be allowed in terms of the Order passed by the Hon'ble Division Bench. The operative directions from the Division Bench's order, as referenced, included upholding the amendment to Section 3 granting power to fix duty rates between six paise and one rupee, setting aside amendments granting power to identify consumer categories for tariff fixing, upholding the proviso for a minimum duty of 6 paise in the absence of notification, striking down amendments to Section 7, striking down G.O.Ms.No.7 dated 08.04.2022 while allowing collection of duty at 6 paise per unit until modified, and keeping the exemption for agricultural consumers in force. The Division Bench also struck down G.O.Ms.No.22 dated 23.10.2024, while keeping G.O.Ms.No.277 dated 09.12.1994 in force.

Facts

The petitioner, Escientia Advanced Sciences Private Limited, filed a writ petition challenging the validity of G.O.Ms.No.7, Energy (Power-III) Department dated 08.04.2022. This Government Order increased the electricity duty from Rs.0.06 paise per unit to Rs.1.00 paise per unit on energy sales made to commercial and industrial consumers. The petitioner sought a direction to levy electricity duty only at the rate of Rs.0.06 paise per unit and to adjust any refundable amount in future consumption bills. The respondents are the State of Andhra Pradesh and the Eastern Power Distribution Company of Andhra Pradesh Ltd. The petitioner contended that the G.O. was illegal and arbitrary. The respondents placed on record a judgment from a Division Bench of the same High Court in W.P.No.29672 of 2023 and batch.

Key Issues

1. Whether G.O.Ms.No.7, Energy (Power-III) Department dated 08.04.2022, which increased the electricity duty on energy sales to commercial and industrial consumers from Rs.0.06 paise to Rs.1.00 per unit, is illegal, arbitrary, and contrary to law? Petitioner's Contention: The petitioner argued that the action of the respondents in issuing G.O.Ms.No.7 dated 08.04.2022, levying electricity duty at Rs.1.00 per unit on energy sales to commercial and industrial consumers, is illegal, arbitrary, and contrary to law. They sought to have the duty levied at the previous rate of Rs.0.06 paise per unit and for the refund of excess amounts paid. Respondents' Contention: The respondents did not present separate arguments but relied on the judgment of the Hon'ble Division Bench in W.P.No.29672 of 2023 and batch, which dealt with similar issues concerning electricity duty.