M/S.Satyanarayana Swamy Traders vs. State Of Andhra Pradesh

Held

The High Court disposed of the writ petition in terms of a common order passed by its Division Bench in W.P. No. 29672 of 2023 & batch dated June 26, 2025. The Division Bench's order held that the amendment to Section 3 of the relevant Act by Act 23 of 2024, granting power to the government to fix duty rates between six paise and one rupee per unit, was upheld. However, amendments to Section 3 by Act 10 of 2021 and Act 23 of 2024, allowing the government to identify consumer categories for tariff fixing, were 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 by Act 23 of 2024 were struck down. Crucially, G.O. Ms. No. 7, dated April 8, 2022, was struck down. The government was permitted to collect duty at the rate of 6 paise per unit from the date Act 10 of 2021 was published until the rate was modified lawfully. The exemption for agricultural consumers under G.O. Ms. No. 82 remained in force. G.O. Ms. No. 22, dated October 23, 2024, was also struck down, with G.O. Ms. No. 277, dated December 9, 1994, remaining in force, permitting licensees to recover duty at 6 paise per unit, subject to exemptions.

Facts

The petitioners, a group of commercial and industrial consumers, filed a writ petition challenging G.O. Ms. No. 7 Energy (Power-II) Department dated April 8, 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 old rate of Rs. 0.06 paise per unit, with any refundable amounts adjusted in future bills. They also sought an interim direction to prevent power disconnection for recovery of the increased duty.

Key Issues

1. Whether G.O. Ms. No. 7, dated April 8, 2022, which increased the electricity duty from Rs. 0.06 paise to Rs. 1.00 per unit for commercial and industrial consumers, is illegal, arbitrary, and contrary to law? Petitioner's argument: The petitioners contended that the increase in electricity duty by G.O. Ms. No. 7 was illegal and arbitrary. They sought to have the G.O. declared void and to continue paying duty at the previously established rate of Rs. 0.06 paise per unit. Revenue/State's argument: The judgment does not explicitly record arguments from the State or its agencies. However, it notes that the issue was covered by a previous Division Bench order.