Arya Sea Foods Private Limited vs. The State Of Ap

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 & batch. The Division Bench had struck down G.O.Ms.No.7, dated April 8, 2022. However, it held 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 in the Gazette until the rate of duty was modified in accordance with law. The exemption granted to agricultural consumers under G.O.Ms.No.82, dated July 7, 2003, was also affirmed to remain in force. The Division Bench also struck down G.O.Ms.No.22, dated October 23, 2024, but permitted licensees to recover duty at the rate of 6 paise per unit from consumers, subject to any exemptions, with G.O.Ms.No.277, dated December 9, 1994, remaining in force throughout the disputed period. The amendment to Section 3 by Act 23 of 2024, granting power to the government to fix the rate between six paise and one rupee, was upheld, but the power to identify consumer categories for fixing tariff rates by Act 10 of 2021 and Act 23 of 2024 was set aside. Amendments to Section 7 by Act 23 of 2024 were struck down.

Facts

The petitioner, Arya Sea Foods Private Limited, filed a writ petition challenging G.O.Ms.No.7, Energy (Power-III) Department, dated April 8, 2022, which exorbitantly 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 contended that this action was arbitrary and illegal, violating their constitutional rights. The petitioner also challenged the consequent levy and recovery of electricity duty at the enhanced rate by the second respondent (APEPDCL) through High Tension (HT) bills issued from April 2022 to October 2023 for their service connection ELR 975. The petitioner sought to set aside the G.O. and the bills, and to direct a refund of excess duty paid and to prevent future levies at the enhanced rate.

Key Issues

1. Whether G.O.Ms.No.7, Energy (Power-III) Department, dated April 8, 2022, which increased the electricity duty from Rs. 0.06 to Rs. 1 per unit for commercial and industrial consumers, is arbitrary, illegal, and violative of constitutional rights, particularly concerning Section 3(1) of the Andhra Pradesh Electricity Duty Act, 1939. Petitioner's arguments: 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. They sought to set aside the G.O. and the consequent bills. Respondent's arguments: The respondents, represented by the Government Pleader for Energy and counsel for APEPDCL, did not explicitly record arguments in the judgment. However, the context implies they defended the G.O. and the levy of duty.