M/S. Shree Balaji Agro vs. The State Of Andhra Pradesh

Held

The High 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 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 under Section 3A of the Duty Act, referencing G.O.Ms.No.277, dated 09.12.1994. The amendment to Section 3 by Act 23 of 2024, granting power to the government to fix the rate between six paise and one rupee per unit, was upheld, but the power to identify consumer categories for tariff fixing was set aside. Amendments to Section 7 by Act 23 of 2024 were struck down.

Facts

The petitioner, M/s. Shree Balaji Agro, represented by its partner Ayushi Singhal, filed a writ petition challenging G.O.M.S.NO. 7, Energy (Power-III) Department, dated 08-04-2022. This Government Order (G.O.) 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 in Andhra Pradesh. The petitioner argued this was a colourable exercise of power under Section 3(1) of the Andhra Pradesh Electricity Duty Act, 1939. The consequential action of the second respondent, Andhra Pradesh Eastern Power Distribution Corporation Limited (APEPDCL), in levying this enhanced duty through H.T. bills from April 2022 onwards was also challenged. The petitioner sought to set aside the impugned G.O. and the bills, and to direct the refund or adjustment of excess duty paid.

Key Issues

1. Whether the action of the first respondent in issuing G.O.M.S.NO. 7, Energy (Power-III) Department, 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 in the State of Andhra Pradesh, is a colourable exercise of powers conferred under Section 3(1) of the Andhra Pradesh Electricity Duty Act, 1939, and consequently illegal, arbitrary, and violative of constitutional rights and principles of natural justice. Petitioner's contentions: The petitioner argued that the G.O. was arbitrary, illegal, unjust, unfair, unreasonable, excessive, and violative of fundamental and constitutional rights, principles of natural justice, the National Tariff Policy 2016, and the common order on Tariff for Retail Sale of Electricity for FY 2022-23 by the Andhra Pradesh Electricity Regulatory Commission. Revenue/State's contentions: The judgment does not record specific arguments made by the respondents. However, it notes that learned counsel appearing on either side submitted that the issue was covered by a common order of the Division Bench.