Rama Biomarine vs. The State Of Andhra Pradesh

Held

The High Court disposed of the writ petition in terms of a common order passed by a Division Bench in W.P.No.29672 of 2023 & batch dated 26.06.2025. 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 according to law. The exemption granted to agricultural consumers under G.O.Ms.No.82, dated 07.07.2003, was also affirmed to remain in force. The Division Bench upheld the amendment to Section 3 of the Act, by Act 23 of 2024, to the extent of granting power to the government to fix the rate of duty between six paise and one rupee per unit. Conversely, amendments granting power to identify consumer categories for fixing tariff rates were set aside. Amendments to Section 7 were struck down. The proviso to Section 3, stipulating a minimum duty of 6 paise per unit in the absence of notified rates, remained unaffected. The Court also struck down G.O.Ms.No.22, dated 23.10.2024, but permitted licensees to recover duty at 6 paise per unit under G.O.Ms.No.277, dated 09.12.1994, subject to exemptions.

Facts

The petitioner, Rama Biomarine, filed a writ petition challenging G.O.Ms.No.7, issued by the Energy Department of the State of Andhra Pradesh on April 8, 2022. This Government Order (G.O.) purportedly increased the electricity duty from Rs. 0.06 per unit to Rs. 1.00 per unit on energy sales to commercial and industrial consumers. The petitioner argued that this increase was exorbitant and illegal, violating their fundamental and constitutional rights, principles of natural justice, and national policies. The consequential action by the second respondent, Andhra Pradesh Eastern Power Distribution Corporation Limited (APEPDCL), was to levy electricity duty at the enhanced rate, reflected in bills issued from April 2022 onwards. The petitioner sought to set aside the G.O. and the enhanced electricity bills, and to refund or adjust excess duty paid.

Key Issues

1. Whether the action of the first 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, and thus liable to be set aside. Petitioner's Contentions: The petitioner contended that the G.O. was issued in colourable exercise of powers conferred under Section 3(1) of the Andhra Pradesh Electricity Duty Act, 1939. They argued it was contrary to established policies and principles, leading to excessive and unfair levying of electricity duty. Respondent's Contentions: The judgment does not explicitly record arguments from the respondents. However, the context implies they defended the G.O. and the subsequent levying of duty.