Mor Alloys PVT LTD vs. The State Of Ap

Held

The Court held that the issue in the present writ petition is covered by the common order passed by the Division Bench of this Court in W.P.No.29672 of 2023 & batch dated 26.06.2025. The Division Bench, in its order, struck down G.O.Ms.No.7, dated 08.04.2022, and G.O.Ms.No.22, dated 23.10.2024. 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 Division Bench also upheld the amendment to Section 3 of the Duty Act by Act 23 of 2024, to the extent of granting power to the government to fix the rate of Duty between six paise to one rupee per unit, but set aside the power to identify categories of consumers for fixing tariff rates. The proviso to Section 3, stipulating a minimum duty of 6 paise per unit in the absence of notified rates, remains unaffected. The amendments to Section 7 by Act 23 of 2024 were struck down. The present writ petition was disposed of in terms of this common order.

Facts

The petitioner, MOR ALLOYS PVT LTD, filed a writ petition challenging G.O.Ms.No.7 Energy (Power-III) Department dated 08.04.2022. The petitioner sought a direction for the refund or adjustment of excess electricity duty of 94 paisa per unit levied and collected for the period April 2022 to September 2023. This action was alleged to be arbitrary, illegal, and contrary to a previous common order dated 15.09.2023 in WP No 16619 of 2022 and batch. The petitioner also submitted representations on 19.09.2023 and 06.10.2023 for the refund/adjustment, which were not considered. The respondents are the State of AP, Energy Department, and various entities of Eastern Power Distribution Company of Andhra Pradesh Ltd.

Key Issues

1. Whether the action of the respondents in not refunding the excess electricity duty of 94 paisa per unit levied and collected from the petitioner for the period April 2022 to September 2023, despite this Court's common order dated 15.09.2023 in WP No 16619 of 2022 and batch, is arbitrary, illegal, and unjust, violating the petitioner's rights under Articles 14 and 19(1)(a) of the Constitution? Petitioner's contentions: The petitioner argued that the respondents' failure to refund or adjust the excess electricity duty collected is contrary to the directions issued by this Court in a previous common order and is therefore illegal and arbitrary. The petitioner relied on the common order dated 15.09.2023 in WP No 16619 of 2022 and batch. Respondents' contentions: The judgment records that learned counsel appearing on either side submitted that the issue involved in this writ petition is covered by the common order passed by the Division Bench of this Court in W.P.No.29672 of 2023 & batch dated 26.06.2025. No specific arguments were recorded for the respondents beyond this submission.