M/S. Vital Hatcheries (P) LTD vs. The State Of Andhra Pradesh

Held

The High Court, by referring to a common order passed by a Division Bench in W.P.No.29672 of 2023 & batch dated 26.06.2025, disposed of the present writ petition. The Division Bench had struck down G.O.Ms.No.7, dated 08.04.2022, finding that the power to fix different rates of duty for different categories of consumers had been struck down. Consequently, the fixation of different rates of duty for different categories identified by the government had to be set aside. However, the proviso to Section 3, fixing a minimum duty of 6 paise (Rs. 0.06) per unit, was upheld. The Court also upheld the amendment to Section 3 by Act 23 of 2024, granting the government power to fix duty rates between six paise and one rupee per unit. The amendments to Section 3 by Act 10 of 2021 and Act 23 of 2024, granting power to identify consumer categories for tariff fixing, were set aside. G.O.Ms.No.22, dated 23.10.2024, was also struck down, but G.O.Ms.No.277, dated 09.12.1994, remained in force. The government was entitled to collect duty at 6 paise per unit throughout the disputed period, and licensees were permitted to recover duty at 6 paise per unit from consumers.

Facts

M/s. Vital Hatcheries (P) Ltd. (Petitioner) filed a writ petition challenging G.O.M.S.No. 7, Energy (Power-III) Department, dated 08-04-2022, issued by the State of Andhra Pradesh (Respondent No. 1). This G.O. purportedly increased the Electricity Duty from Rs. 0.06 per unit to Rs. 1.00 per unit for commercial and industrial consumers. The petitioner argued this was an arbitrary and illegal exercise of power under Section 3(1) of the Andhra Pradesh Electricity Duty Act, 1939. The consequential action by APEPDCL (Respondent No. 2) in levying this enhanced duty through bills from April 2022, payable on March 1, 2023, and continuously thereafter, was also challenged. The petitioner sought to set aside the G.O. and the bills, and to refund or adjust excess duty paid since December 2024.

Key Issues

1. Whether the action of the 1st respondent in issuing G.O.M.S.No. 7, dated 08-04-2022, exorbitantly increasing the Electricity Duty from Rs. 0.06 to Rs. 1.00 per unit for commercial and industrial consumers, is arbitrary, illegal, unjust, unfair, unreasonable, excessive, and violative of Fundamental and Constitutional Rights, Principles of Natural Justice, the 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, contrary to law. Petitioner's Contention: The G.O. represents a colourable exercise of power under Section 3(1) of the Andhra Pradesh Electricity Duty Act, 1939, and is contrary to various policies and principles. Revenue's Contention: Not recorded in the judgment excerpt provided.