Suryamitra Exim PVT LTD vs. The State Of Ap

Held

The High Court disposed of the writ petition in terms of the common order dated June 26, 2025, passed by the Division Bench in W.P.No.29672 of 2023 & batch. The Division Bench's order struck down G.O.Ms.No.7, dated 08.04.2022. However, it clarified that the government is 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 is modified in accordance with law. The exemption granted to agricultural consumers under G.O.Ms.No.82, dated 07.07.2003, was also held to remain in force. The Division Bench also upheld the amendment to Section 3 of the Act by Act 23 of 2024, granting power to the government to fix the rate of duty between six paise and one rupee per unit, but struck down amendments granting power to identify consumer categories for fixing tariff rates and amendments to Section 7 by Act 23 of 2024. G.O.Ms.No.22, dated 23.10.2024, was also struck down, with G.O.Ms.No.277, dated 09.12.1994, remaining in force, permitting licensees to recover duty at 6 paise per unit.

Facts

The petitioners, Suryamitra Exim Pvt Ltd (Unit-I and Unit-II) and Subham Ice Factory, challenged G.O.Ms.No.7, Energy (Power-III) Department, dated April 8, 2022, issued by the 1st Respondent (State of AP). This G.O. 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 petitioners contended this was an arbitrary exercise of power under Section 3(1) of the Andhra Pradesh Electricity Duty Act, 1939. Consequently, the 2nd Respondent (Andhra Pradesh Eastern Power Distribution Company Ltd) levied and recovered electricity duty at the enhanced rate through High Tension (HT) bills from April 2022 to October 2023 for their service connections. The petitioners sought to set aside the G.O. and the bills, and for a refund of excess duty paid.

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 Rs. 0.06 per unit to Rs. 1 per unit on energy sales to commercial and industrial consumers, was a colourable exercise of powers conferred under Section 3(1) of the Andhra Pradesh Electricity Duty Act, 1939, and consequently arbitrary, illegal, unjust, unfair, unreasonable, excessive, and violative of fundamental and constitutional rights and principles of natural justice. Petitioner's Arguments: The petitioners argued that the G.O. was an arbitrary and illegal enhancement of electricity duty, violating their constitutional rights. They sought to set aside the G.O. and the consequent HT bills, and for a refund of excess duty paid. Revenue/State's Arguments: The judgment does not explicitly record arguments from the respondents. However, it notes that the issue was covered by a common order of the Division Bench.