M/S Vijay Durga Stone Crusher vs. State Of Andhra Pradesh

Held

The High Court allowed the writ petition, holding that the issue was squarely covered by the judgment of the Division Bench in W.P.No.29672 of 2023 and batch dated 26.06.2025. The Court noted that in the aforementioned judgment, G.O.Ms.No.7 dated 08.04.2022 had been struck down. Consequently, the official respondents were disentitled from levying electricity duty at the rate of Rs. 1/- per unit of sales. The Court directed that the present writ petition be allowed in terms of the operative portion of the Division Bench's order. The operative directions from the Division Bench's order, as referenced, included upholding the amendment to Section 3 by Act 23 of 2024 regarding the government's power to fix duty rates between six paise and one rupee per unit, setting aside amendments related to identifying consumer categories for tariff fixing, upholding the proviso for a minimum duty of 6 paise, striking down amendments to Section 7 by Act 23 of 2024, striking down G.O.Ms.No.7 dated 08.04.2022 (while allowing collection at 6 paise per unit until modified), and striking down G.O.Ms.No.22 dated 23.10.2024 (while allowing recovery at 6 paise per unit based on G.O.Ms.No.277 dated 09.12.1994).

Facts

The petitioners, a group of stone crusher and granite businesses, filed a writ petition challenging amendments to Section 31 of the A.P. Electricity Duty Act, 1939, and subsequent notifications (G.O. Ms.No. 7 dated 08-04-2022 and G.O. Ms.No. 22 dated 23-10-2023). These amendments and notifications increased the electricity duty from Rs. 0.06 paise per unit to Rs. 1.00 per unit for commercial and industrial consumers. The petitioners argued that this increase was illegal and arbitrary. They sought a direction to adjust any refundable amounts in future bills and to levy electricity duty at the original rate of Rs. 0.06 paise per unit. An interim application was also filed to prevent power disconnection for non-payment of the increased duty.

Key Issues

1. Whether the amendments made to Section 31 of the A.P. Electricity Duty Act, 1939, through the A.P. Electricity Duty Amendment Act, 2020, and A.P. Electricity Duty Amendment Act No. 23 of 2024, are legal and valid, particularly concerning the increase in electricity duty for commercial and industrial consumers? 2. Whether the notifications issued in G.O. Ms.No. 7 dated 08-04-2022 and G.O. Ms.No. 22 dated 23-10-2023, which increased the electricity duty from Rs. 0.06 paise per unit to Rs. 1.00 per unit for commercial and industrial consumers, are illegal, arbitrary, and contrary to law? Petitioner's Arguments: The petitioners contended that the increase in electricity duty was illegal, arbitrary, and contrary to law. They relied on a previous judgment of the Division Bench in W.P.No.29672 of 2023 and batch dated 26.06.2025, which they argued squarely covered the present issue. Revenue/State's Arguments: The judgment does not record specific arguments made by the respondents. However, the context implies they were defending the validity of the amendments and notifications.