M/S. Mohan Gandhi American Kidney Institute 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 of the same Court in W.P.No.29672 of 2023 & batch dated 26.06.2025. The Division Bench's order 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 also struck down G.O.Ms.No.22, dated 23.10.2024, but permitted licensees to recover duty at the rate of 6 paise per unit from consumers, subject to any exemptions. The High Court directed that the present writ petition be disposed of in line with this common order, without any order as to costs.

Facts

The petitioner, M/s. Mohan Gandhi American Kidney Institute, filed a writ petition challenging G.O.M.S.NO. 7, Energy (Power-III) Department, dated 08.04.2022, which exorbitantly increased the electricity duty from Rs. 0.06 per unit to Rs. 1.00 on energy sales to commercial and industrial consumers. The petitioner argued this action was arbitrary, illegal, and violative of constitutional rights, national policies, and regulatory commission orders. The consequential action of the 2nd respondent (Andhra Pradesh Eastern Power Distribution Corporation Limited) in levying electricity duty at the enhanced rate, reflected in High Tension (HT) bills issued from April 2022, was also challenged. The petitioner sought to set aside the G.O. and the enhanced 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.M.S.NO. 7, Energy (Power-III) Department, 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 passed by the Andhra Pradesh Electricity Regulatory Commission, thereby constituting a colourable exercise of power under Section 3(1) of the Andhra Pradesh Electricity Duty Act, 1939. Petitioner's Contention: The petitioner argued that the G.O. was arbitrary, illegal, unjust, unfair, unreasonable, excessive, and violative of constitutional rights, principles of natural justice, the National Tariff Policy 2016, and the common order of the Andhra Pradesh Electricity Regulatory Commission. They contended it was a colourable exercise of power under Section 3(1) of the Andhra Pradesh Electricity Duty Act, 1939. Revenue/State's Contention: The judgment does not record specific arguments from the revenue or state respondents regarding the merits of the G.O. Instead, it notes that counsel for both sides submitted that the issue was covered by a common order of the Division Bench.