Atchuta Laboratories PVT. LTD. vs. State Of Andhra Pradesh

Held

The High Court disposed of the writ petition in terms of a 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 clarified 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 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 also struck down G.O.Ms.No.22, dated 23.10.2024, but held that G.O.Ms.No.277, dated 09.12.1994, remained in force, permitting licensees to recover duty at 6 paise per unit, subject to exemptions. The amendment to Section 3 by Act 23 of 2024, granting power to fix duty between six paise and one rupee per unit, was upheld, but the power to identify consumer categories for tariff fixing was set aside. Amendments to Section 7 by Act 23 of 2024 were struck down.

Facts

The petitioners, six private limited companies involved in pharmaceutical manufacturing, filed a writ petition challenging G.O.Ms.No.7 Energy (Power-III) Department dated 08.04.2022, which increased the electricity duty from Rs.0.06 paise per unit to Rs.1.00 paise on energy sales to commercial and industrial consumers. They sought a declaration that this action was illegal and arbitrary, and requested that the increased duty be adjusted against future bills, with duty levied only at the original rate of Rs.0.06 paise per unit. Interim applications were also filed seeking to prevent power disconnection for non-payment of the enhanced duty and to vacate interim orders. The writ petition was filed before the High Court of Andhra Pradesh.

Key Issues

1. Whether the action of the Respondents in issuing G.O.Ms.No.7 Energy (Power-III) Department dated 08.04.2022, increasing electricity duty from Rs.0.06 paise to Rs.1.00 paise per unit for commercial and industrial consumers, is illegal, arbitrary, and contrary to law? Petitioner's contention: The petitioners argued that the increase in electricity duty was illegal and arbitrary. They sought a direction to levy duty only at the original rate of Rs.0.06 paise per unit and to adjust any refundable amounts against future bills. They also sought to prevent disconnection of power supply for non-payment of the enhanced duty. Respondent's contention: The judgment does not explicitly record any specific arguments made by the respondents. However, it notes that learned counsel appearing on either side submitted that the issue was covered by a common order of the Division Bench.