Isuzu Motors INDIA Private Limited 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 in W.P.No.29672 of 2023 & batch dated 26.06.2025. The Division Bench's order upheld the amendment to Section 3 of the Andhra Pradesh Electricity Duty Act, 1939, by Act 23 of 2024, to the extent it granted the government power to fix the duty rate between six paise and one rupee per unit. However, it struck down amendments to Section 3 by Act 10 of 2021 and Act 23 of 2024 concerning the power to identify consumer categories for tariff fixing. The proviso to Section 3, mandating a minimum duty of 6 paise per unit in the absence of notified rates, was left unaffected. Crucially, G.O.Ms.No.7 dated 08.04.2022 was struck down. The government was permitted to collect duty at 6 paise per unit from the date Act 10 of 2021 was published until the rate was modified lawfully. Amendments to Section 7 by Act 23 of 2024 were also struck down. G.O.Ms.No.22 dated 23.10.2024 was struck down, with G.O.Ms.No.277 dated 09.12.1994 remaining in force, allowing licensees to recover duty at 6 paise per unit, subject to exemptions.

Facts

The petitioner, ISUZU MOTORS INDIA PRIVATE LIMITED, filed a writ petition challenging G.O.Ms.No.7 Energy (Power-Ill) Department dated 08.04.2022, issued by the State of Andhra Pradesh. This G.O. purportedly increased the levy of electricity duty from Re.0.06 per unit to Re. 1.00 per unit. The petitioner contended that this increase was arbitrary, unreasonable, excessive, and violative of constitutional provisions, the National Tariff Policy 2016, and the powers conferred under Section 3(1) of the Andhra Pradesh Electricity Duty Act, 1939. The writ petition sought to set aside the said G.O. in so far as it affected the petitioner and to suspend its operation.

Key Issues

1. Whether the action of the 1st respondent in issuing G.O.Ms.No.7 Energy (Power-Ill) Department dated 08.04.2022, exorbitantly increasing the levy of electricity duty from Re.0.06 per unit to Re. 1.00 per unit, is arbitrary, unreasonable, excessive, and violative of Articles 14 and 21 of the Constitution of India, and contrary to the National Tariff Policy, 2016, in exercise of powers conferred under Section 3(1) of the Andhra Pradesh Electricity Duty Act, 1939. Petitioner's Contention: The petitioner argued that the increase in electricity duty by G.O.Ms.No.7 was arbitrary, unreasonable, excessive, and violated constitutional provisions (Articles 14 and 21) and the National Tariff Policy, 2016, stemming from a colorable 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 contentions from the respondents. However, the court's decision references a common order by a Division Bench that dealt with similar issues.