M/S. Sameera Agro Industries 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's order held that the amendment to Section 3 of the Andhra Pradesh Electricity Duty Act, 1939, by Act 23 of 2024, granting power to the government to fix the rate of duty between six paise and one rupee per unit, is upheld. However, 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 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. Crucially, G.O.Ms.No.7, dated 08.04.2022, was struck down. The government was permitted to collect duty at the rate of 6 paise per unit from the date Act 10 of 2021 was gazetted until the rate was modified lawfully. G.O.Ms.No.22, dated 23.10.2024, was also struck down, but G.O.Ms.No.277, dated 09.12.1994, remained in force, allowing licensees to recover duty at 6 paise per unit, subject to exemptions.

Facts

The petitioner, M/s. Sameera Agro Industries, filed a writ petition challenging G.O.M.S.NO. 7, dated 08-4-2022, issued by the Energy Department of the State of Andhra Pradesh. This Government Order (G.O.) purportedly increased the levy of Electricity Duty from Rs. 0.06 per unit to Rs. 1.00 per unit on energy sales to commercial and industrial consumers. The petitioner contended that this increase was arbitrary and illegal. The consequential action of the 2nd respondent, Andhra Pradesh Eastern Power Distribution Corporation Limited (APEPDCL), in levying electricity duty at the enhanced rate, as reflected in High Tension (H.T.) bills from April 2022, was also challenged. The petitioner sought to set aside the G.O. and the enhanced electricity bills, and requested a refund or adjustment of excess duty paid.

Key Issues

1. Whether the action of the 1st respondent in issuing G.O.M.S.NO. 7, dated 08-4-2022, 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 passed by the Andhra Pradesh Electricity Regulatory Commission. Petitioner's Contention: The petitioner argued that the increase in electricity duty was a colourable exercise of power under Section 3(1) of the Andhra Pradesh Electricity Duty Act, 1939, and violated various legal and policy frameworks. Revenue/State's Contention: The judgment does not explicitly record arguments from the respondent(s) regarding the validity of G.O.M.S.NO. 7. Instead, it notes that learned counsel for both sides submitted that the issue is covered by a common order passed by a Division Bench of the High Court.