M/S. Asvini Fisheries Private Limited vs. State Of Andhra Pradesh

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's order held that G.O.Ms.No.7, dated April 8, 2022, is struck down. 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 July 7, 2003, remains in force. The Division Bench also struck down G.O.Ms.No.22, dated October 23, 2024, but held that G.O.Ms.No.277, dated December 9, 1994, remains in force, permitting licensees to recover duty at the rate of 6 paise per unit, subject to exemptions. The amendment to Section 3 of the Act, by Act 23 of 2024, granting power to the government to fix the duty rate between six paise and one rupee per unit, was upheld. However, the power to identify categories of consumers for fixing tariff rates was set aside. The proviso to Section 3, stipulating a minimum duty of 6 paise per unit in the absence of notified rates, was unaffected. Amendments to Section 7 by Act 23 of 2024 were struck down.

Facts

The petitioner, M/s. Asvini Fisheries Private Limited, filed a writ petition challenging G.O.Ms.No.7, Energy (Power-III) Department, dated April 8, 2022, issued by the State of Andhra Pradesh. This Government Order (G.O.) purportedly 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. The Andhra Pradesh Eastern Power Distribution Company Limited (APEPDCL) subsequently levied and recovered electricity duty at the enhanced rate, issuing High Tension (H.T.) bills to the petitioner for the period from April 2022 to October 2023. The petitioner sought to set aside the G.O. and the raised H.T. bills, and to direct the refund of excess duty paid.

Key Issues

1. Whether G.O.Ms.No.7, Energy (Power-III) Department, dated April 8, 2022, which exorbitantly increased the levy of electricity duty from Rs. 0.06 per unit to Rs. 1 per unit on energy sales to commercial and industrial consumers, is arbitrary, illegal, unjust, unfair, unreasonable, excessive, and violative of fundamental and constitutional rights and principles of natural justice, contrary to Section 3(1) of the Andhra Pradesh Electricity Duty Act, 1939? Petitioner's arguments: The petitioner argued that the G.O. was issued in colorable exercise of power and that the consequent action of the respondent in levying and recovering duty at the enhanced rate was illegal. They sought to set aside the G.O. and the H.T. bills, and for a refund of excess duty paid. Respondent's arguments: The judgment does not explicitly record arguments from the respondents. However, the context implies they defended the G.O. and the subsequent recovery of electricity duty.