Tirupati Veneers (P) 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 June 26, 2025. The Division Bench's order struck down G.O.Ms.No.7, dated April 8, 2022. However, it held 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 July 7, 2003, remains in force. The Division Bench also upheld the amendment to Section 3 by Act 23 of 2024, granting power to the government to fix the rate of duty between six paise to one rupee per unit, but set aside amendments granting power to identify categories of consumers for fixing tariff rates. Amendments to Section 7 by Act 23 of 2024 were struck down. G.O.Ms.No.22, dated October 23, 2024, was also struck down, with G.O.Ms.No.277, dated December 9, 1994, remaining in force, permitting licensees to recover duty at 6 paise per unit.

Facts

The petitioner, Tirupati Veneers (P) Ltd., filed a writ petition challenging G.O.Ms.No.7, Energy (Power-III) Department, dated April 8, 2022, which exorbitantly increased the levy of Electricity Duty from Rs.0.06 per unit to Rs.1.00 on energy sales to commercial and industrial consumers in Andhra Pradesh. The petitioner contended that this action was arbitrary, illegal, and violative of constitutional rights, principles of natural justice, and national policies. The consequential action of the second respondent, Andhra Pradesh Eastern Power Distribution Corporation Limited (APEPDCL), in levying Electricity Duty at the enhanced rate through High Tension (HT) bills from April 2022 onwards was also challenged. The petitioner sought to set aside the impugned G.O. and the enhanced electricity bills, and to direct the refund or adjustment of excess duty paid.

Key Issues

1. Whether the action of the first respondent in issuing G.O.Ms.No.7, dated April 8, 2022, by exorbitantly increasing the levy of Electricity Duty from Rs.0.06 per unit to Rs.1.00 on energy sales to commercial and industrial consumers is arbitrary, illegal, unjust, unfair, unreasonable, excessive, and violative of Fundamental and Constitutional Rights, Principles of Natural Justice, 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, turning on Section 3(1) of the Andhra Pradesh Electricity Duty Act, 1939. Petitioner's Contentions: The petitioner argued that the increase in electricity duty was colorable exercise of power, arbitrary, illegal, and violative of various legal and policy frameworks. They relied on the Andhra Pradesh Electricity Duty Act, 1939, National Tariff Policy 2016, and the orders of the Andhra Pradesh Electricity Regulatory Commission. Respondent's Contentions: The respondents sought to vacate the interim order and dismiss the writ petition. Their specific arguments are not detailed in the provided text, but they would likely defend the validity of the G.O. and the enhanced levy.