Aktinos Pharma PVT LTD vs. The State Of Ap

Held

The High Court disposed of the writ petition in terms of the common order passed by a Division Bench of the same Court in W.P.No.29672 of 2023 & batch dated 26.06.2025. The Division Bench's order, as referenced in this judgment, struck down G.O.Ms.No.7, dated 08.04.2022. However, it clarified that 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, 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 permitted licensees to recover duty at the rate of 6 paise per unit from consumers, subject to any exemptions. The amendment to Section 3 of the Duty Act by Act 23 of 2024, granting power to the government 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. The proviso to Section 3, stipulating a minimum duty of 6 paise per unit in the absence of notified rates, remained unaffected.

Facts

The petitioners, Aktinos Pharma Pvt Ltd and five other private limited companies, filed a writ petition challenging G.O.Ms.No.7 Energy (Power-III) Department dated 08.04.2022. This Government Order (G.O.) increased the electricity duty on energy sales to commercial and industrial consumers from Rs.0.06 paise per unit to Rs.1.00 paise per unit. The petitioners contended that this action was illegal, arbitrary, and contrary to law. They sought directions to adjust refundable amounts in future bills, levy electricity duty at the original rate of Rs.0.06 paise per unit, and prevent disconnection of power supply for recovery of the increased duty. The writ petition was filed under Article 226 of the Constitution of India.

Key Issues

1. Whether the action of the Respondents in issuing G.O.Ms.No.7 Energy (Power - III) Department dated 08.04.2022, which increased electricity duty from Rs.0.06 paise per unit to Rs.1.00 paise per unit on energy sales to commercial and industrial consumers, is illegal, arbitrary, and contrary to law? (Question of law, turning on the Andhra Pradesh Electricity Duty Act, 1939, as amended). Petitioner's arguments: The petitioners argued that the increase in electricity duty was illegal and arbitrary. They sought to have the G.O. struck down and to be allowed to pay duty at the previously established rate of Rs.0.06 paise per unit. They also sought consequential relief regarding adjustments and prevention of power disconnection. Respondent's arguments: The judgment does not explicitly record arguments from the respondents. However, it notes that the issue was covered by a common order of the Division Bench in a batch of writ petitions.