Everest Ply And Veneers (P) LTD vs. The State Of Ap

Held

The Court disposed of the writ petition in terms of the common order passed by a Division Bench in W.P.No.29672 of 2023 & batch dated 26.06.2025. The Division Bench had 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 affirmed to remain in force. The Division Bench upheld the amendment to Section 3 of the Act by Act 23 of 2024, granting power to the government to fix duty rates between six paise and one rupee per unit, but set aside amendments granting power to identify consumer categories for tariff fixing. Amendments to Section 7 by Act 23 of 2024 were struck down. G.O.Ms.No.22, dated 23.10.2024, was also struck down, with G.O.Ms.No.277, dated 09.12.1994, remaining in force, permitting licensees to recover duty at 6 paise per unit.

Facts

The petitioner, Everest Ply and Veneers (P) Ltd., filed a writ petition challenging G.O.Ms.No.7, Energy (Power-III) Department, dated 08.04.2022, issued by the State of Andhra Pradesh. 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 that this increase was arbitrary and illegal. The consequential action of the second respondent, Andhra Pradesh Eastern Power Distribution Corporation Limited (APEPDCL), in levying electricity duty at the enhanced rate, including raising High Tension (HT) bills from April 2022, was also challenged. The petitioner sought to set aside the impugned G.O. and the bills, and to direct a refund or adjustment of excess duty paid.

Key Issues

1. Whether the action of the 1st respondent in issuing G.O.Ms.No.7, dated 08.04.2022, 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, is a question of law. Petitioner's arguments: The petitioner argued that the G.O. was issued in colorable exercise of powers conferred under Section 3(1) of the Andhra Pradesh Electricity Duty Act, 1939, and that the enhanced levy was contrary to various policies and orders. Respondent's arguments: The respondents sought to vacate the interim order and dismiss the writ petition, implying a defense of the G.O.'s validity, though specific arguments are not detailed in the provided text.