M/S Uno Feeds vs. 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 was 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 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 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. The amendment to Section 3 by Act 23 of 2024, granting power to the government to fix duty between six paise and one rupee per unit, was upheld, but the power to identify consumer categories 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 notification, remained unaffected. Amendments to Section 7 by Act 23 of 2024 were struck down.

Facts

The petitioners, M/s UNO FEEDS and others, filed a writ petition challenging G.O. Ms. No. 7 Energy (Power-II) Department dated 08.04.2022, which increased the electricity duty from Rs. 0.06 per unit to Rs. 1.00 per unit on energy sales to commercial and industrial consumers. They sought a declaration that this levy was illegal and arbitrary, and requested that the increased duty be adjusted against refundable amounts or that duty be levied only at the rate of Rs. 0.06 per unit. Interim applications were filed seeking to prevent power disconnection for non-payment of the enhanced duty and to vacate previous interim orders. The respondents are the State of Andhra Pradesh and the Eastern Power Distribution Company of Andhra Pradesh Limited (APEPDCL).

Key Issues

1. Whether the action of the respondents in issuing G.O. Ms. No. 7 Energy (Power-II) Department dated 08.04.2022, increasing the electricity duty from Rs. 0.06 per unit to Rs. 1.00 per unit on energy sales to commercial and industrial consumers, is illegal, arbitrary, and contrary to law? Petitioner's contention: The petitioners argued that the levy of electricity duty at the increased rate was illegal and arbitrary. They sought to have the G.O. declared void and to have the duty levied at the original rate of Rs. 0.06 per unit. Respondent's contention: The judgment does not explicitly record arguments from the respondents. However, the context implies they were defending the G.O. and the increased levy.