Veerabhadra Exports (P) LTD vs. The State Of Ap

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's order, which this Court followed, struck down G.O.Ms.No.7, dated 08.04.2022. 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 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 and 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. 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, but G.O.Ms.No.277, dated 09.12.1994, was permitted to remain in force, allowing licensees to recover duty at 6 paise per unit.

Facts

The petitioner, Veerabhadra Exports (P) Ltd., challenged G.O.Ms.No.7, dated 08.04.2022, issued by the State of Andhra Pradesh, which exorbitantly increased the levy of Electricity Duty from Rs.0.06 per unit to Rs.1.00 on energy sales to commercial and industrial consumers. The petitioner contended that this action was arbitrary, illegal, and violative of constitutional rights. The consequential action of the Andhra Pradesh Eastern Power Distribution Corporation Limited (APEPDCL) in levying Electricity Duty at the enhanced rate, reflected in High Tension (HT) bills from April 2022, was also challenged. The petitioner sought to set aside the impugned G.O. and the HT bills, and requested a refund or adjustment of excess electricity duty paid.

Key Issues

1. Whether the action of the 1st respondent in issuing G.O.Ms.No.7, dated 08.04.2022, by exorbitantly increasing the levy of Electricity Duty from Rs.0.06 per unit to Rs.1.00 on energy sales to commercial and industrial consumers is arbitrary, illegal, unjust, unfair, unreasonable, excessive, and violative of Fundamental and Constitutional Rights, Principles of Natural Justice, National Tariff Policy 2016, and the common order on Tariff for Retail Sale of Electricity for FY 2022-23, as argued by the petitioner. 2. Whether the consequential action of the 3rd respondent (APEPDCL) in levying Electricity Duty at the enhanced rate, inter alia, by raising HT bills from April 2022, is liable to be set aside, 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 was contrary to various policies and orders. The respondents' arguments are not explicitly recorded in the provided text, but their role as the issuing authority and levying body implies a defense of the G.O. and the subsequent bills.