Sri Srinivasa 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, 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 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, referencing G.O.Ms.No.277, dated 09.12.1994. The amendments to Section 3, by Act 23 of 2024, granting power to the government to fix duty between six paise and one rupee per unit, were upheld, but the power to identify consumer categories for tariff fixing was set aside. The proviso for a minimum duty of 6 paise per unit was unaffected. Amendments to Section 7 by Act 23 of 2024 were struck down.

Facts

The petitioner, Sri Srinivasa Rice Mill, challenged G.O.M.S.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 for commercial and industrial consumers. The petitioner contended that this increase was arbitrary and illegal, and that the consequential action by the Andhra Pradesh Eastern Power Distribution Corporation Limited (APEPDCL) in levying electricity duty at the enhanced rate, reflected in High Tension (H.T.) bills from April 2022, was also illegal. 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, the 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 Arguments: The petitioner argued that the increase in electricity duty was excessive and illegal, violating various legal and policy frameworks. They contended that the G.O. was issued in colorable exercise of power under Section 3(1) of the Andhra Pradesh Electricity Duty Act, 1939. Respondent's Arguments: The judgment does not record specific arguments from the respondents. However, it notes that the issue was covered by a previous common order of the Division Bench.