M/S Naga Hanuman Fish Packers Unit I vs. The State Of Andhra Pradesh

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 26.06.2025. The Division Bench had struck down G.O.Ms.No.7, dated 08.04.2022. However, it permitted the government 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 was modified in accordance with law. The exemption granted to agricultural consumers under G.O.Ms.No.82, dated 07.07.2003, was also stated to remain in force. The Division Bench upheld the amendment to Section 3 by Act 23 of 2024, granting power to the government to fix the duty rate between six paise and one rupee per unit, but struck down amendments granting power to identify consumer categories for tariff fixing and amendments to Section 7 by Act 23 of 2024.

Facts

The petitioner, M/s. Naga Hanuman Fish Packers Unit I, challenged G.O.Ms.No.7 dated 08.04.2022, issued by the Energy Department of the State of Andhra Pradesh, which exorbitantly increased the electricity duty from Rs.0.06 to Rs.1.00 per unit for commercial and industrial consumers. The petitioner argued this was an arbitrary and illegal exercise of power under Section 3(1) of the Andhra Pradesh Electricity Duty Act, 1939. The consequential action by the Andhra Pradesh Eastern Power Distribution Corporation Limited (APEPDCL) in levying this enhanced duty through High Tension (HT) bills from April 2022 onwards was also challenged. The petitioner sought to set aside the G.O. and the impugned 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.Ms.No.7, dated 08.04.2022, 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, National Tariff Policy 2016, and the common order on Tariff for Retail Sale of Electricity for FY 2022-23, turning on Section 3(1) of the Andhra Pradesh Electricity Duty Act, 1939. Petitioner's contentions: The G.O. was issued in colourable exercise of power, violating constitutional rights and principles of natural justice. It was contrary to national policies and regulatory commission orders. Respondent's contentions: Not recorded in the judgment.