Alivira Animal Health LTD. vs. State Of Andhra Pradesh

Held

The High Court, in its order dated 30.06.2025, disposed of the writ petition in terms of a common order passed by a Division Bench on 26.06.2025 in W.P.No.29672 of 2023 & batch. The Division Bench held that G.O.Ms.No.7, dated 08.04.2022, is struck down. However, 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 exemption granted to agricultural consumers under G.O.Ms.No.82 remains 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, remains in force, permitting licensees to recover duty at the rate of 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, was upheld, but the power to identify consumer categories for tariff fixing was set aside. The proviso to Section 3, stipulating a minimum duty of 6 paise, was unaffected. Amendments to Section 7 by Act 23 of 2024 were struck down.

Facts

The petitioners, Alivira Animal Health Ltd. and others, filed a writ petition challenging G.O.Ms.No.7, dated 08.04.2022, issued by the Energy Department of the State of Andhra Pradesh. This G.O. increased the Electricity Duty on energy sales to commercial and industrial consumers from Rs. 0.06 per unit to Rs. 1.00 per unit. The petitioners sought a declaration that this action was illegal and arbitrary, and requested an adjustment of refundable amounts in their future bills, with Electricity Duty levied only at the rate of Rs. 0.06 per unit. They also sought interim directions to prevent power disconnection for recovery of the increased duty.

Key Issues

1. Whether G.O.Ms.No.7, dated 08.04.2022, which increased the Electricity Duty on energy sales to commercial and industrial consumers from Rs. 0.06 to Rs. 1.00 per unit, is illegal, arbitrary, and contrary to law, as argued by the petitioners. The petitioners contended that the action was illegal and arbitrary. The respondents' specific arguments are not detailed in the provided text, but they are represented by the Principal Secretary, Energy Department, and the Eastern Power Distribution Company of Andhra Pradesh Ltd. 2. Whether the amendments to Section 3 and Section 7 of the Andhra Pradesh Electricity Duty Act, 1939, by Act 23 of 2024, and Act 10 of 2021, are valid, particularly concerning the government's power to fix duty rates and identify consumer categories.