M/S Sai Balaji Metal Industry vs. The State Of Andra Pradesh

WP/10734/2025HC Andhra PradeshGSTCNR APHC01020512202529 June 2025Bench: SUBBA REDDY SATTI4 pages
AI SummaryRemanded

Held

The Court acknowledged that a batch of writ appeals and writ petitions involving the same issue were pending. It was also noted that an interim order granted in those batch matters was in operation. Consequently, the Court directed that the petitioner shall continue to pay the electricity duty collected at the rate of Rs.0.06 paise per unit (KWH) to the licensees, along with any arrears. The matter was then listed for further hearing after the Summer Vacation of 2025. The Court did not make a final determination on the validity of G.O.Ms.No.7 but continued the interim arrangement.

Facts

The writ petitioner, M/s. Sal Balaji Metal Industry, challenged the action of the 1st respondent (State of Andhra Pradesh) in issuing G.O.Ms.No.7 dated 08.04.2022. This Government Order purportedly increased the 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 Articles 14 and 21 of the Constitution of India, as well as contrary to the National Tariff Policy, 2016. The petitioner sought to set aside the said G.O. insofar as it affected them and also sought an interim suspension of its operation. The respondents are the State of Andhra Pradesh and its power distribution companies.

Key Issues

1. Whether the increase in electricity duty from Re.0.06 per unit to Re.1.00 per unit, as per G.O.Ms.No.7 dated 08.04.2022, is arbitrary, unreasonable, excessive, and violative of Articles 14 and 21 of the Constitution of India, and contrary to the National Tariff Policy, 2016, as contended by the writ petitioner? Petitioner's Arguments: The petitioner argued that the increase in electricity duty was a colorable exercise of power, arbitrary, unreasonable, excessive, and violated fundamental rights under Articles 14 and 21 of the Constitution. They also contended it was contrary to the National Tariff Policy, 2016. Revenue/State's Arguments: The judgment records that the learned counsel for the respondents submitted that the issue involved in this writ petition is the same as in a batch of pending writ appeals and writ petitions. They also noted that an interim order granted in those batch matters is in operation.

Sections Cited

Section 3(1) of the Andhra Pradesh Electricity Duty Act, 1939

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF ANDHRA PRADESH AT AMA (Special Original Jurisdiction) WEDNESDAY ,THE THIRTIETH DAY OF APRIL TWO THOUSAND AND TWENTY FIVE :PRESENT: THE HONOURABLE SRI JUSTICE SUBBA REDDY SATTI WRIT PETITION NO: 10734 OF 2025 Between: M/s. Sal Balaji Metal Industry, Floor, D No. 1-1-138/22 Chittoor District Andhra Pradesh Rep by Managing Venkata Ramanaia S R Nagar, Nagari, Partner Yamala ...Writ Petitioner AND 1. The State Of Andra Pradesh, Rep. by its Principle Secretary, Energy Department, Secretariat, Velagapudi, Amaravathi, Guntur District

2.

The Southern Power Distribution Company of Andhra Pradesh Srinivasapuram, Thiruchanur Road, Tirupati, Tirupati Dist. Chairman Managing Director.

3.

The Southern Power Distribution Company of Andhra Pradesh OP Circle, OP Circle, Tirupathi, Tirupathi Dist. Rep by Accounts Officer Limited, Rep by its Limited, its Senior ...Respondents Petition under Article 226 of the Constitution of India circumstances stated in the affidavit filed therewith, the High Court pleased to issue a writ, order or direction more particularly one in the nature of praying that in the may be / Writ of Mandamus to declare the action of the 1st respondent in issuin

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