Facor Alloys Limited vs. The State Of Andhra Pradesh

Held

The High Court noted that the issue involved in the present writ petition was covered by a common order dated June 26, 2025, passed by a Division Bench in W.P.No.29672 of 2023 and batch. The Division Bench had struck down G.O.Ms.No.7 dated April 8, 2022, and G.O.Ms.No.22 dated October 23, 2024. The Division Bench held that the government is entitled to collect duty at the rate of 6 paise per unit from the date Act 10 of 2021 was published until the rate of duty is modified according to law. The Division Bench also upheld the amendment to Section 3 of the Duty Act, granting the government power to fix duty rates between six paise and one rupee per unit, but set aside the power to identify consumer categories for fixing tariff rates. Consequently, the present writ petition was disposed of in terms of the Division Bench's common order. The court did not delve into the specific contentions raised against G.O.Ms.No.7, as it was struck down.

Facts

The petitioner, Facor Alloys Limited, filed a writ petition challenging the action of the respondents in not refunding excess electricity duty of ₹0.94 paisa per unit collected for the period April 2022 to August 2023. This collection was allegedly contrary to a previous High Court order dated September 15, 2023, in W.P.No.16619 of 2022. The petitioner also sought to adjust this excess amount against outstanding C.C. dues and other arrears. The petition further prayed for a direction to prevent coercive measures, including disconnection of their service connection, due to non-payment of arrears without refunding the excess duty. The writ petition was filed challenging G.O.Ms.No.7 Energy (Power-III) Department dated April 8, 2022.

Key Issues

1. Whether the respondents' action in not refunding the excess electricity duty collected from the petitioner for the period April 2022 to August 2023, despite a previous High Court order, is arbitrary, illegal, and violative of the petitioner's rights under Articles 14 and 19(1)(g) of the Constitution of India? 2. Whether the petitioner is entitled to adjust the excess electricity duty paid against outstanding C.C. dues and other arrears? Petitioner's arguments: The petitioner contended that the respondents' refusal to refund the excess electricity duty, which was collected contrary to a previous court order, was illegal and arbitrary. They argued that they should be allowed to adjust this excess payment against their existing dues. They relied on the High Court's common order dated September 15, 2023, in W.P.No.16619 of 2022 and batch. Respondents' arguments: The judgment does not record any specific arguments made by the respondents. However, the court notes that the issue involved in the writ petition is covered by a common order passed by a Division Bench of the High Court.