M/S. Ns Instruments INDIA Private Limited Tpt vs. The State Of Andhra Pradesh

Held

The Court disposed of the writ petition in terms of the common order passed by the Division Bench of the High Court in W.P.No.29672 of 2023 & batch dated 26.06.2025. The Division Bench's order, as extracted in the present judgment, held the following: (1) The amendment to Section 3 of the Andhra Pradesh Electricity Duty Act, 1939, by Act 23 of 2024, granting power to the government to fix duty rates between six paise and one rupee per unit, is upheld. (2) Amendments to Section 3 by Act 10 of 2021 and Act 23 of 2024, granting power to identify consumer categories for tariff fixing, are set aside. (3) The proviso to Section 3, stipulating a minimum duty of 6 paise per unit in the absence of notified rates, remains unaffected. (4) Amendments to Section 7 by Act 23 of 2024 are struck down. (5) G.O.Ms.No.7 dated 08.04.2022 is struck down, but the government is entitled to collect duty at the rate of 6 paise per unit from the date Act 10 of 2021 was published until the rate is modified lawfully. Exemption for agricultural consumers under G.O.Ms.No.82 remains in force. (6) G.O.Ms.No.22 dated 23.10.2024 is struck down, but G.O.Ms.No.277 dated 09.12.1994 remains in force, permitting licensees to recover duty at 6 paise per unit, subject to exemptions. The ratio is that while the government has the power to fix electricity duty rates within a prescribed range, the arbitrary fixation of rates and the manner of collection through specific G.Os. can be struck down if found to be contrary to law or constitutional principles. The operative direction is to dispose of the writ petition in terms of the Division Bench's common order.

Facts

The petitioner, M/s. NS Instruments India Private Limited, filed a writ petition challenging G.O.Ms.No.7 Energy (Power-III) Department dated 08.04.2022, which allegedly exorbitantly increased the levy of electricity duty from Re.0.06 per unit to Re.1.00 per unit. The petitioner contended that this action by the 1st respondent (State of Andhra Pradesh, Energy Department) was arbitrary, unreasonable, excessive, and violative of Articles 14 and 21 of the Constitution, as well as contrary to the National Tariff Policy, 2016. The petition sought to set aside the said G.O. in so far as it affected the writ petitioner. The matter was listed for hearing on 30.06.2025.

Key Issues

1. Whether the action of the 1st respondent in issuing G.O.Ms.No.7 dated 08.04.2022, increasing the 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, as contended by the petitioner. Petitioner's arguments: The petitioner argued that the increase in electricity duty was exorbitant, arbitrary, unreasonable, and excessive, violating constitutional provisions and national policy. The petitioner sought to set aside the G.O. in its entirety concerning their liability. Respondent's arguments: The judgment does not record specific arguments from the respondents. However, the court's decision refers to a common order passed by a Division Bench in a batch of writ petitions, including W.P.No.29672 of 2023, which dealt with similar challenges to G.O.Ms.No.7 and related G.Os.