M/S. Pricol Limited vs. The State Of Andhra Pradesh

Held

The Court held that the issue involved in the writ petition was covered by the common order dated June 26, 2025, passed by the Division Bench of the High Court in W.P.No.29672 of 2023 and batch. In that common order, G.O.Ms.No.7, dated April 8, 2022, was struck down. The Division Bench observed that since G.O.Ms.No.7 was struck down, the question of granting sanction to collect duty fixed under it would not arise, leading to G.O.Ms.No.22 also being struck down. The Division Bench upheld the amendment to Section 3 of the Act by Act 23 of 2024, granting power to the government to fix duty rates between six paise and one rupee per unit. However, it set aside amendments allowing the government to identify consumer categories for fixing tariff rates. The proviso for a minimum duty of 6 paise per unit was left unaffected. Amendments to Section 7 by Act 23 of 2024 were struck down. G.O.Ms.No.7 was struck down, but the government was entitled 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. The exemption for agricultural consumers under G.O.Ms.No.82 remained in force. G.O.Ms.No.22 was struck down, but G.O.Ms.No.277 remained in force, permitting licensees to recover duty at 6 paise per unit.

Facts

The petitioner, M/s. Pricol Limited, filed a writ petition challenging G.O.Ms.No.7, Energy (Power-III) Department, dated April 8, 2022. This Government Order (G.O.) purportedly increased the electricity duty levy from Re. 0.06 per unit to Re. 1.00 per unit. The petitioner contended that this increase was arbitrary, unreasonable, excessive, and violative of constitutional provisions and the National Tariff Policy, 2016. The petition sought to declare the G.O. as colorable exercise of power under Section 3(1) of the Andhra Pradesh Electricity Duty Act, 1939, and to set it aside. The petitioner also filed an interim application seeking to suspend the operation of the G.O. pending the disposal of the writ petition.

Key Issues

1. Whether the action of the 1st Respondent in issuing G.O.Ms.No.7, dated 08.04.2022, exorbitantly increasing the levy of electricity duty from Re. 0.06 per unit to Re. 1.00 per unit, is arbitrary, unreasonable, excessive, and violative of Articles 14 and 21 of the Constitution of India, and contrary to the National Tariff Policy, 2016, under Section 3(1) of the Andhra Pradesh Electricity Duty Act, 1939? Petitioner's Contention: The petitioner argued that the increase in electricity duty by G.O.Ms.No.7 was arbitrary, unreasonable, excessive, and a colorable exercise of power, violating constitutional rights and national policy. Respondent's Contention: The judgment does not record specific arguments from the respondents. However, it notes that the issue was covered by a common order of the Division Bench.