Fresh Bowl Horticulture PVT LTD vs. The State Of Andhra Pradesh

Held

The High Court allowed the writ petition, holding that the issue was squarely covered by the Division Bench's order in W.P.No.29672 of 2023 and batch, dated June 26, 2025. The Division Bench had struck down G.O.Ms.No.7, dated April 8, 2022, thereby disentitling the official respondents from levying electricity duty at the rate of one rupee per unit of sales. Consequently, the High Court directed that the present writ petition be allowed in terms of the aforementioned Division Bench order. The operative directions included striking down G.O.Ms.No.7 and permitting the collection of duty at the rate of 6 paise per unit from the period when Act 10 of 2021 was published until the rate was modified according to law. The exemption granted to agricultural consumers under G.O.Ms.No.82, dated July 7, 2003, was also upheld.

Facts

The petitioners, including various private companies and hospitals, filed a writ petition challenging G.O.Ms.No.7, Energy (Power-II) Department, dated April 8, 2022. This Government Order (G.O.) increased the electricity duty from Rs. 0.06 paise per unit to Rs. 1.00 per unit on energy sales made to commercial and industrial consumers. The petitioners argued that this levy was illegal and arbitrary. The respondents are the State of Andhra Pradesh and various power distribution companies. The procedural history involves the petitioners seeking a writ of mandamus to declare the G.O. illegal and to direct the respondents to adjust refundable amounts in future bills and levy duty at the old rate of Rs. 0.06 paise per unit.

Key Issues

1. Whether the action of the respondents in issuing G.O.Ms.No.7, Energy (Power-II) Department, dated April 8, 2022, which increased electricity duty from Rs. 0.06 paise per unit to Rs. 1.00 per unit on energy sales to commercial and industrial consumers, is illegal, arbitrary, and contrary to law, as per the relevant provisions of the Electricity Duty Act? Petitioner's Contention: The petitioners argued that the levy imposed by G.O.Ms.No.7 is illegal and arbitrary. They relied on a previous judgment of the Division Bench of the High Court in W.P.No.29672 of 2023 and batch, dated June 26, 2025, which they contended squarely covered this issue. Revenue/State's Contention: The judgment does not record any specific arguments made by the respondents. However, it notes that the Standing Counsel for APEPDCL appeared.