Sridevi Srinivasa Ice Plant vs. The State Of Ap

Held

The Court disposed of the writ petition in terms of the common order dated June 26, 2025, passed by the Division Bench of the High Court in W.P.No.29672 of 2023 & batch. The Division Bench order struck down G.O.Ms.No.7, dated 08.04.2022. However, it allowed the government 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 07.07.2003, was also held to remain in force. The amendment to Section 3 by Act 23 of 2024, granting power to the government to fix the rate of duty between six paise to one rupee per unit, was upheld. However, amendments to Section 3 by Act 10 of 2021 and Act 23 of 2024, granting power to identify categories of consumers for fixing tariff rates, were set aside. Amendments to Section 7 by Act 23 of 2024 were struck down. The proviso to Section 3, stipulating a minimum duty of 6 paise per unit in the absence of notified rates, remained unaffected. G.O.Ms.No.22, dated 23.10.2024, was also struck down, but G.O.Ms.No.277, dated 09.12.1994, remained in force, permitting licensees to recover duty at 6 paise per unit.

Facts

The petitioner, Sridevi Srinivasa Ice Plant, challenged G.O.M.S.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 on energy sales to commercial and industrial consumers. The petitioner argued this increase was arbitrary and illegal, violating their constitutional rights and various policies. The consequential action by 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 petitioner sought to set aside the G.O. and the bills, and sought a refund or adjustment of excess duty paid.

Key Issues

1. Whether the action of the first respondent in issuing G.O.M.S.NO. 7, dated 08-4-2022, 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, is arbitrary, illegal, unjust, unfair, unreasonable, excessive, and violative of Fundamental and Constitutional Rights guaranteed under the Constitution of India, violative of Principles of Natural Justice, contrary to National Tariff Policy 2016, contrary to the common order on Tariff for Retail Sale of Electricity during the financial year 2022-23 passed by the Andhra Pradesh Electricity Regulatory Commission, and contrary to law, as contended by the petitioner. Petitioner's contentions: The petitioner argued that the increase in electricity duty was colorable exercise of power under Section 3(1) of the Andhra Pradesh Electricity Duty Act, 1939. They contended it was violative of fundamental and constitutional rights, principles of natural justice, the National Tariff Policy 2016, and the common order on tariff by the Andhra Pradesh Electricity Regulatory Commission. Respondent's contentions: The respondents sought to uphold the G.O. and the consequential levy of electricity duty.