N K Marine Exports LTD vs. The State Of Andhra Pradesh

Held

The High Court disposed of the writ petition in terms of a common order dated 26.06.2025 passed by a 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 according to law. The exemption granted to agricultural consumers under G.O.Ms.No.82, dated 07.07.2003, was also confirmed to remain in force. The Division Bench also struck down G.O.Ms.No.22, dated 23.10.2024, but permitted licensees to recover duty at the rate of 6 paise per unit from consumers, subject to any exemptions, with G.O.Ms.No.277, dated 09.12.1994, remaining in force throughout the disputed period. The court upheld 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, 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. The operative direction for this writ petition was to follow the common order, implying that the enhanced duty beyond 6 paise per unit was not to be collected, and the government could collect duty at 6 paise per unit.

Facts

The petitioner, N K Marine Exports Ltd, filed a writ petition challenging G.O.Ms.No.7, Energy (Power-III) Department dated 08.04.2022, issued by the State of Andhra Pradesh. This G.O. purportedly increased the electricity duty from Rs.0.06 per unit to Rs.1 per unit for commercial and industrial consumers. The petitioner contended that this increase was arbitrary and illegal, and that the consequent recovery of electricity duty at the enhanced rate by Andhra Pradesh Eastern Power Distribution Company Ltd (APEPDCL) through High Tension (HT) bills from April 2022 to October 2023 was without sanction. The petitioner sought to set aside the G.O. and the raised HT bills, and for a refund of excess duty paid.

Key Issues

1. Whether G.O.Ms.No.7, Energy (Power-III) Department dated 08.04.2022, 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, as argued by the petitioner. 2. Whether the consequent action of the 2nd Respondent (APEPDCL) in levying/recovering electricity duty at the enhanced rate, inter alia by raising HT Bills from April 2022 to October 2023, is without sanction of the Government, as argued by the petitioner. The petitioner argued that the G.O. was issued in colourable exercise of powers conferred under Section 3(1) of the Andhra Pradesh Electricity Duty Act, 1939, and that the enhanced levy was illegal and violative of their rights. The respondents did not record any specific arguments in the judgment, but the court's decision was based on a common order from a Division Bench. The judgment does not explicitly state the revenue's arguments.