Sri Vijaya Lakshmi Raw And Boiled Rice Mill vs. The State Of Ap

Held

The High 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 June 26, 2025. The Division Bench's order, which this Court followed, upheld the amendment to Section 3 of the Andhra Pradesh Electricity Duty Act, 1939, by Act 23 of 2024, to the extent of granting power to the government to fix the rate of duty between six paise and one rupee per unit. However, it set aside the amendments to Section 3 by Act 10 of 2021 and Act 23 of 2024 concerning the government's power to identify consumer categories for fixing tariff rates. The proviso to Section 3, stipulating a minimum duty of 6 paise per unit in the absence of notified rates, remained unaffected. 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 legally. 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 petitioner, Sri Vijaya Lakshmi Raw and Boiled Rice Mill, represented by its proprietor G. Harinadha Reddy, filed a writ petition challenging G.O.Ms.No.7, Energy (Power-III) Department, dated 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 in Andhra Pradesh. The petitioner contended that this increase was arbitrary, illegal, and violative of various rights and policies. 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 (HT) bills from April 2022, was also challenged. The petitioner sought to set aside the impugned G.O. and the bills, and to direct the refund or adjustment of excess electricity duty paid.

Key Issues

1. Whether the action of the 1st respondent in issuing G.O.Ms.No.7, Energy (Power-III) Department, dated April 8, 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 a colourable exercise of powers conferred under Section 3(1) of the Andhra Pradesh Electricity Duty Act, 1939, and consequently illegal, arbitrary, and violative of constitutional rights. 2. Whether the consequential action of the 2nd respondent in levying Electricity Duty at the enhanced rate, as reflected in the HT bills issued to the petitioner from April 2022, is liable to be set aside. Petitioner's arguments: The petitioner argued that the increase in electricity duty was 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 passed by the Andhra Pradesh Electricity Regulatory Commission. The petitioner contended that the G.O. was a colourable exercise of power under Section 3(1) of the Andhra Pradesh Electricity Duty Act, 1939. Revenue/State's arguments: The judgment does not record specific arguments made by the respondents. However, it notes that the issue was covered by a common order passed by a Division Bench of the High Court.