M/S. Uniloids Biosciences Private Limited. vs. State Of Andhra Pradesh

Held

The High Court disposed of the writ petition in terms of the common order dated 26.06.2025 passed by the Division Bench in W.P.No.29672 of 2023 & batch. The Division Bench had struck down G.O.Ms.No.7, dated 08.04.2022. However, it held 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, to the extent of granting power to the government to fix the rate of duty between six paise to one rupee per unit, but set aside the power to identify categories of consumers for fixing tariff rates. Amendments to Section 7 by Act 23 of 2024 were struck down, and 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, M/s. Uniloids Biosciences Private Limited and Aishwarya Impex, challenged G.O.Ms.No.7, Energy (Power-III) Department dated 08.04.2022, 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. They contended this was a colorable exercise of power under Section 3(1) of the Andhra Pradesh Electricity Duty Act, 1939. The respondents, including the State of Andhra Pradesh and power distribution companies, were levying and recovering this enhanced duty. The petitioners sought to set aside the G.O. and the consequent High Tension (H.T.) bills issued from April 2022 to October 2023, and to refund excess duty paid. They also sought interim relief against coercive steps for recovery.

Key Issues

1. Whether G.O.Ms.No.7, Energy (Power-III) Department dated 08.04.2022, which increased electricity duty from Rs.0.06 to Rs.1 per unit for commercial and industrial consumers, is arbitrary, illegal, and violative of constitutional rights, in light of Section 3(1) of the Andhra Pradesh Electricity Duty Act, 1939? Petitioner's arguments: The petitioners argued that the G.O. was issued in colorable exercise of power, making it arbitrary, illegal, unjust, unfair, unreasonable, and excessive, violating their fundamental and constitutional rights and principles of natural justice. They sought to set aside the G.O. and the consequent H.T. bills, and to refund the excess duty paid. Revenue/State's arguments: The judgment does not record specific arguments from the respondents. However, it notes that learned counsel appearing on either side submitted that the issue was covered by a common order of the Division Bench.