Annamacharya Institute Of Technology And Sciences vs. The 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 struck down G.O.Ms.No.7, dated 08.04.2022, holding that the government was entitled to collect duty at the rate of 6 paise per unit throughout the period 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, dated 07.07.2003, was also upheld. Furthermore, G.O.Ms.No.22, dated 23.10.2024, was struck down. However, G.O.Ms.No.277, dated 09.12.1994, was held to remain in force, permitting licensees to recover duty at the rate of 6 paise per unit, subject to exemptions. The amendments to Section 3 by Act 10 of 2021 and Act 23 of 2024, granting power to the government to identify consumer categories for tariff fixing, were set aside. Amendments to Section 7 by Act 23 of 2024 were struck down. The amendment to Section 3 by Act 23 of 2024, granting power to fix duty between six paise and one rupee per unit, was upheld. The proviso to Section 3, stipulating a minimum duty of 6 paise per unit in the absence of notified rates, remained unaffected. The operative direction was to dispose of the writ petition in terms of the Division Bench's order.

Facts

The petitioners, Annamacharya Institute of Technology and Sciences, filed a writ petition challenging G.O.Ms.No.7, Energy (Power-III) Department dated 08.04.2022, which levied electricity duty at Re 1/- per unit on energy sales to industrial and commercial consumers. They argued this was a colorable exercise of power, overreach, and interfered with statutory policies and the State Electricity Regulatory Commission's powers. They also challenged consequential G.O. Ms. No. 22 Energy (Power. Ill) Department dated 23.10.2023, which permitted licensees to recover this duty. The petitioners sought to set aside these notifications and refund or adjust the collected amounts. The respondents are the State of Andhra Pradesh and the Andhra Pradesh Southern Power Distribution Company Limited (APSPDCL) and its officials.

Key Issues

1. Whether G.O.Ms.No.7, Energy (Power-III) Department dated 08.04.2022, levying electricity duty at Re 1/- per unit on industrial and commercial consumers, is vitiated by colorable exercise of power, gross overreach, interference with statutory policy, illegality, arbitrariness, irrationality, unreasonableness, hostile discrimination, and violation of Article 14 of the Constitution. 2. Whether G.O. Ms. No. 22 Energy (Power. Ill) Department dated 23.10.2023, permitting licensees to recover the electricity duty, is vitiated by lack of power and jurisdiction. Petitioner's arguments: The G.Os. were issued in colorable exercise of power, constituted gross overreach and interference with Central Government notifications and the State Electricity Regulatory Commission's statutory powers, were illegal, arbitrary, irrational, unreasonable, discriminatory, and violated Article 14 of the Constitution. They also argued the consequential G.O. lacked power and jurisdiction. Revenue/State's arguments: The judgment records no specific arguments from the respondents. However, it notes that the issue was covered by a common order of the Division Bench.