M/S. Godavari Enterprises vs. The State Of Andhra Pradesh

Held

The High Court disposed of the writ petition in terms of a common order passed by a Division Bench of the same Court in W.P.No.29672 of 2023 & batch, dated June 26, 2025. The Division Bench's order, which was annexed to the present order, had previously struck down G.O.Ms.No.7, dated April 8, 2022. However, the Division Bench held that the government was entitled to collect duty at the rate of 6 paise per unit throughout the period from the date Act 10 of 2021 was published until the rate of duty was modified in accordance with law. The Division Bench also upheld the amendment to Section 3 of the Act, granting the government power to fix the duty rate between six paise and one rupee per unit, but set aside the power to identify categories of consumers for fixing tariff rates. The proviso stipulating a minimum duty of 6 paise per unit in the absence of a notified rate was left unaffected. The amendments to Section 7 by Act 23 of 2024 were struck down. G.O.Ms.No.22, dated October 23, 2024, was also struck down, but G.O.Ms.No.277, dated December 9, 1994, remained in force, permitting licensees to recover duty at 6 paise per unit.

Facts

The petitioner, M/s. Godavari Enterprises, operating as DVSSN Raju Rice Mill, 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 on energy sales to commercial and industrial consumers in Andhra Pradesh. The petitioner contended that this action was arbitrary and illegal, violating their constitutional rights and relevant policies. The consequential action by the second respondent, Andhra Pradesh Eastern Power Distribution Corporation Limited (APEPDCL), in levying electricity duty at the enhanced rate through L.T. bills from February 2023 onwards, was also challenged. The petitioner sought to set aside the impugned G.O. and the L.T. bills, and to recover excess duty paid.

Key Issues

1. Whether the action of the first respondent in issuing G.O.Ms.No.7, dated April 8, 2022, by exorbitantly increasing the levy of Electricity Duty from Rs.0.06 to Rs.1.00 per unit 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, as contended by the petitioner? 2. Whether the consequential action of the second respondent in levying Electricity Duty at the enhanced rate is liable to be set aside, and if the excess duty paid by the petitioner is liable to be refunded or adjusted, as prayed for by the petitioner? Petitioner's Contentions: The petitioner argued that G.O.Ms.No.7 was an arbitrary and illegal exercise of power under Section 3(1) of the Andhra Pradesh Electricity Duty Act, 1939. They asserted it violated constitutional rights, principles of natural justice, the National Tariff Policy 2016, and the common order of the Andhra Pradesh Electricity Regulatory Commission (APERC) for FY 2022-23. The petitioner sought to quash the G.O. and consequential bills, and for a refund of excess duty paid. Respondent's Contentions: The respondents sought to vacate the interim order and dismiss the writ petition, implying they defended the validity of the G.O. and the consequential levy of electricity duty.