Aadhya Sea Foods 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 order of the Division Bench in W.P.No.29672 of 2023 and batch dated 26.06.2025. The Division Bench judgment had struck down G.O.Ms.No.7, dated 08.04.2022. Consequently, the respondents were disentitled from levying electricity duty at the enhanced rate of Rs.1 per unit. The High 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, which were adopted by this Court, included upholding the amendment to Section 3 of the Act granting power to the government to fix duty rates between six paise and one rupee, but setting aside amendments granting power to identify consumer categories for fixing tariff rates. It also struck down amendments to Section 7 and G.O.Ms.No.7, while permitting the government to collect duty at 6 paise per unit from the date Act 10 of 2021 was published until the rate was modified according to law. Exemptions for agricultural consumers remained in force.

Facts

The petitioner, Aadhya Seafoods Pvt Ltd, filed a writ petition challenging G.O.Ms.No.7, Energy (Power-Ill) Department dated 08.04.2022, which arbitrarily increased the electricity duty from Rs.0.06 per unit to Rs.1 per unit on energy sales to commercial and industrial consumers. The petitioner also challenged the consequent action of the respondent Andhra Pradesh Eastern Power Distribution Company Ltd (APEPDCL) in levying and recovering this enhanced duty, citing an HT bill for March 2025. The petitioner argued that this action was illegal and violative of constitutional rights. The petition sought to set aside the G.O. and the enhanced electricity duty levied from April 2022 to March 2024, and to direct a refund of excess duty paid up to February 2025.

Key Issues

1. Whether G.O.Ms.No.7, Energy (Power-Ill) Department dated 08.04.2022, which exorbitantly increased the levy of electricity duty from Rs.0.06 per unit to Rs.1 per unit on energy sales to commercial and industrial consumers, is arbitrary, illegal, and violative of constitutional rights, in purported exercise of powers under Section 3(1) of the Andhra Pradesh Electricity Duty Act, 1939? Petitioner's Contention: The petitioner argued that the G.O. was issued in colourable exercise of power and was arbitrary, illegal, unjust, unfair, unreasonable, excessive, and violative of fundamental and constitutional rights, as well as principles of natural justice. The petitioner relied on a Division Bench judgment in W.P.No.29672 of 2023 and batch dated 26.06.2025, which had dealt with similar issues. Respondent's Contention: The judgment does not record any specific arguments made by the respondents.