Rvp Industries vs. The State Of Andhra Pradesh

Held

The High Court disposed of the writ petition in terms of the common order passed by a Division Bench in W.P. No. 29672 of 2023 & batch dated 26.06.2025. The Division Bench had struck down G.O. Ms. No. 7, dated 08.04.2022. 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 according to law. The proviso to Section 3, stipulating a minimum duty of 6 paise per unit in the absence of a notified rate, was upheld. 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 6 paise per unit, subject to exemptions. The amendment to Section 3 by Act 23 of 2024, granting power to the government to fix duty between six paise and one rupee, 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.

Facts

The petitioner, RVP Industries, challenged G.O. Ms. No. 7 Energy (Power-II) Department dated 08-04-2022, which increased electricity duty from Rs. 0.06 per unit to Rs. 1/- on energy sales to commercial and industrial consumers. The petitioner sought to prevent the levy of duty at the enhanced rate from their service connections and requested adjustment of any refundable amount. The respondents are the State of Andhra Pradesh and the Andhra Pradesh Southern Power Distribution Company Limited (APSPDCL) and its Superintending Engineer. The petitioner also sought interim relief to prevent power disconnection for non-payment of the enhanced duty. The present writ petition was filed in 2025.

Key Issues

1. Whether the action of the respondents in issuing G.O. Ms. No. 7 Energy (Power-II) Department dated 08-04-2022, increasing electricity duty from Rs. 0.06 to Rs. 1/- per unit for commercial and industrial consumers, is illegal, arbitrary, and contrary to statutory provisions. (Question of law) 2. Whether the respondents can levy electricity duty at the enhanced rate from the petitioner's service connections. (Question of mixed law and fact) Petitioner's contentions: The petitioner argued that the increased levy of electricity duty was illegal, arbitrary, and contrary to statutory provisions. They sought a direction to levy duty at the original rate of Rs. 0.06 per unit and to adjust any refundable amount. They also sought interim protection against power disconnection. Revenue/State's contentions: The judgment does not record specific contentions from the respondents. However, it notes that the issue was covered by a previous common order of the Division Bench.