M/S Ganga Plastics vs. State Of Andhra Pradesh

Held

The High Court disposed of the writ petition in terms of a common order dated 26.06.2025 passed by a Division Bench in W.P. No. 29672 of 2023 & batch. The Division Bench had previously struck down G.O. Ms. No. 7 dated 08.04.2022. However, it upheld the amendment to Section 3 of the relevant Act, granting the government power to fix duty rates between six paise and one rupee per unit. The Division Bench also set aside amendments granting power to identify consumer categories for tariff fixing and struck down amendments to Section 7. Crucially, it held that the government was entitled to collect duty at the rate of 6 paise per unit from the date Act 10 of 2021 was published until the rate was modified according to law. The exemption for agricultural consumers was also maintained. G.O. Ms. No. 22 dated 23.10.2024 was also struck down, but G.O. Ms. No. 277 dated 09.12.1994 remained in force, permitting recovery of duty at 6 paise per unit.

Facts

The petitioners, a group of industrial and commercial consumers of electricity, filed a writ petition challenging G.O. Ms. No. 7 Energy (Power-II) Department dated 08.04.2022. This Government Order (G.O.) increased the electricity duty from Rs. 0.06 per unit to Rs. 1.00 per unit for commercial and industrial consumers. The petitioners sought a declaration that this action was illegal and arbitrary, and requested that the duty be levied only at the rate of Rs. 0.06 per unit, with any excess refundable or adjustable in future bills. They also sought interim relief to prevent power disconnection for non-payment of the increased duty.

Key Issues

1. Whether the action of the respondents in issuing G.O. Ms. No. 7 Energy (Power-II) Department dated 08.04.2022, increasing the electricity duty from Rs. 0.06 to Rs. 1.00 per unit for commercial and industrial consumers, is illegal, arbitrary, and contrary to law. Petitioner's contention: The petitioners argued that the increased levy was illegal and arbitrary. They sought a direction to adjust refundable amounts in future bills and to levy electricity duty only at the rate of Rs. 0.06 per unit. Revenue's contention: The judgment does not record specific contentions from the revenue or state respondents. However, it notes that counsel for both sides submitted that the issue was covered by a previous common order of the Division Bench.