M/S Venkateshwara Swamy Silky Rice Industries 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 had struck down G.O.Ms.No.7, dated 08.04.2022, which had increased the electricity duty. However, the government was permitted to collect duty at the rate of 6 paise per unit from the date Act 10 of 2021 was published in the Gazette until the rate was modified according to law. The Division Bench also upheld the amendment to Section 3 of the relevant Act, granting the government power to fix duty rates between six paise and one rupee per unit, but set aside amendments allowing the government to identify consumer categories for tariff fixing. The proviso for a minimum duty of 6 paise per unit in the absence of notification was left unaffected. 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 petitioners, various rice industries and traders, filed a writ petition challenging G.O. Ms.No. 7 Energy (Power - II) Department dated 08-04-2022. This Government Order (G.O.) increased the electricity duty from Rs. 0.06 Paise per unit to Rs. 1.00 per unit on energy sales to commercial and industrial consumers. The petitioners sought a declaration that this G.O. was illegal and arbitrary, and requested that the electricity duty be levied at the original rate of Rs. 0.06 Paise per unit. They also sought an adjustment of refundable amounts in future bills and interim relief to prevent power disconnection for recovery of the increased duty.

Key Issues

1. Whether G.O. Ms.No. 7 Energy (Power - II) Department dated 08-04-2022, which increased electricity duty from Rs. 0.06 Paise per unit to Rs. 1.00 per unit for commercial and industrial consumers, is illegal, arbitrary, and contrary to law. The petitioners argued that the increased electricity duty was illegal and arbitrary. They sought to have the G.O. declared void and requested that the duty be levied at the previous rate of Rs. 0.06 Paise per unit. The respondents, including the State of Andhra Pradesh and the power distribution company, did not present specific arguments in this judgment, as the matter was disposed of based on a previous Division Bench order.