Biophore INDIA Pharmaceuticals PVT. LTD. vs. The State Of Andhra Pradesh

Held

The 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 stated to remain in force. The amendments 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, were upheld. Conversely, amendments to Section 3 by Act 10 of 2021 and Act 23 of 2024, granting power to identify consumer categories for tariff fixing, were set aside. The proviso to Section 3, stipulating a minimum duty of 6 paise per unit in the absence of notified rates, remained unaffected. Amendments to Section 7 by Act 23 of 2024 were struck down. 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, five private limited companies engaged in pharmaceutical manufacturing, filed a writ petition challenging G.O.Ms.No.7 Energy (Power-III) Department dated 08.04.2022. This Government Order (G.O.) increased the electricity duty from Rs.0.06 paise per unit to Rs.1.00 paise on energy sales to commercial and industrial consumers. The petitioners sought a declaration that this G.O. was illegal and arbitrary, and requested an adjustment of refundable amounts in future bills, with electricity duty levied only at the original rate of Rs.0.06 paise per unit. Interim applications were also filed seeking to prevent power disconnection for recovery of the increased duty and to vacate any interim orders.

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 paise to Rs.1.00 paise per unit for commercial and industrial consumers, is illegal, arbitrary, and contrary to law? (Question of law) 2. Whether the petitioners are entitled to have the electricity duty levied only at the rate of Rs.0.06 paise per unit and to adjust any refundable amounts in future bills? Petitioner's arguments: The petitioners contended that the action of the respondents in issuing G.O.Ms.No.7 was illegal, arbitrary, and contrary to law. They sought a direction to levy electricity duty only at the rate of Rs.0.06 paise per unit and to adjust refundable amounts in future consumption bills. They also sought to prevent disconnection of power supply for recovery of the increased duty. Respondent's arguments: The judgment records that learned counsel appearing on either side submitted that the issue involved in this writ petition is covered by a common order dated 26.06.2025 passed by the Division Bench of this Court in W.P.No.29672 of 2023 & batch. No specific arguments were detailed for the respondents.