Sri Vijaya Ganapathi Rice Mill vs. The State Of Ap

Held

The High Court disposed of the writ petition in terms of a common order dated June 26, 2025, passed by a Division Bench in W.P.No.29672 of 2023 & batch. The Division Bench's order had struck down G.O.Ms.No.7, dated 08.04.2022. However, it clarified 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 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 of the Act, granting power to the government to fix the rate of duty between six paise and one rupee per unit, was upheld, but the power to identify categories of consumers for fixing tariff rates was set aside. The proviso for a minimum duty of 6 paise per unit in the absence of a notified rate was unaffected. Amendments to Section 7 were struck down.

Facts

The petitioner, Sri Vijaya Ganapathi Rice Mill, challenged G.O.M.S.NO. 7, issued by the Energy Department 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 contended this was an arbitrary and illegal exercise of power under Section 3(1) of the Andhra Pradesh Electricity Duty Act, 1939. The consequential action by the respondent, Andhra Pradesh Eastern Power Distribution Corporation Limited (APEPDCL), was to levy electricity duty at the enhanced rate, reflected in High Tension (HT) bills issued from April 2022. 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 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. Petitioner's Arguments: The petitioner argued that the increase in electricity duty was excessive and arbitrary, violating constitutional rights and established policies. They relied on the National Tariff Policy 2016 and the Andhra Pradesh Electricity Regulatory Commission's common order for the financial year 2022-23. Respondent's Arguments: The judgment does not record specific arguments from the respondents. However, it notes that both parties submitted that the issue was covered by a previous common order of the Division Bench.