M/S.Sri Satya Sai Ice Factory vs. The State Of Andhra Pradesh

Held

The High Court disposed of the writ petition in terms of a common order dated June 26, 2025, passed by a Division Bench in W.P.No.29672 of 2023 and batch. The Division Bench's order upheld the amendment to Section 3 of the Andhra Pradesh Electricity Duty Act, 1939, by Act 23 of 2024, granting the government power to fix the duty rate between six paise and one rupee per unit. However, it struck down the amendment to Section 3 by Act 10 of 2021 and Act 23 of 2024, to the extent it granted power to identify consumer categories for fixing tariff rates. G.O.Ms.No.7, dated April 8, 2022, was struck down. Nevertheless, the government was entitled to collect duty at the rate of six paise per unit from the date Act 10 of 2021 was published until the rate was modified legally. The exemption for agricultural consumers under G.O.Ms.No.82 remained in force. G.O.Ms.No.22 was also struck down, with G.O.Ms.No.277 remaining in force, permitting licensees to recover duty at six paise per unit.

Facts

The petitioner, M/s. Sri Satya Sai Ice Factory, challenged G.O.Ms.No.7, dated April 8, 2022, issued by the Energy Department of the State of Andhra Pradesh. This Government Order (G.O.) purportedly increased the electricity duty from Rs. 0.06 per unit to Rs. 1.00 per unit for commercial and industrial consumers. The petitioner argued that this increase was arbitrary, illegal, and violative of various rights and policies. The consequential action of the second respondent, Andhra Pradesh Eastern Power Distribution Corporation Limited (APEPDCL), in levying electricity duty at the enhanced rate through L.T. bills from April 2022 onwards was also challenged. The writ petition sought to set aside the G.O. and the enhanced electricity bills, and to direct the refund or adjustment of excess duty paid.

Key Issues

1. Whether the action of the first respondent in issuing G.O.Ms.No.7, dated April 8, 2022, by exorbitantly increasing the levy of Electricity Duty from Rs. 0.06 per unit to Rs. 1.00 on energy sales to commercial and industrial consumers, in purported exercise of powers under Section 3(1) of the Andhra Pradesh Electricity Duty Act, 1939, is arbitrary, illegal, unjust, unfair, unreasonable, excessive, and violative of Fundamental and Constitutional Rights, Principles of Natural Justice, National Tariff Policy 2016, and the common order on Tariff for Retail Sale of Electricity for FY 2022-23 passed by the Andhra Pradesh Electricity Regulatory Commission. Petitioner's Contention: The petitioner argued that the increased electricity duty was excessive and illegal, violating constitutional rights and established policies. They relied on the principles of natural justice and contended that the G.O. was contrary to national policies and regulatory commission orders. Revenue/State's Contention: The respondents did not explicitly record their arguments in the provided text. However, their actions in issuing the G.O. and levying the duty indicate a defense of the government's power to fix electricity duty rates.