M/S. Sri Vasavi Rice Mill vs. The State Of Andhra Pradesh

Held

The Court noted that a batch of writ appeals and writ petitions involving the same issue were pending before it, and an interim order was already in operation in those matters. The learned counsel for both sides acknowledged this and submitted that the issue in the present writ petition was identical to those pending cases. Consequently, the Court directed that the petitioners 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 decide the substantive issues raised in the writ petition but continued the interim arrangement based on pending similar matters.

Facts

The petitioners, several rice mills and industries in Nandyal District, Andhra Pradesh, filed a writ petition challenging G.O.Ms. No. 7 (Energy Power-III Department) dated 08.04.2022. This Government Order increased the electricity duty from Rs. 0.06 paise to Rs. 1/- per unit on energy sales to commercial and industrial consumers. The petitioners argued that this action by the State of Andhra Pradesh and the consequential levy by the Southern Power Distribution Company of Andhra Pradesh Limited (SPPDCL) were illegal, arbitrary, and discriminatory. They sought to set aside the G.O. and the enhanced electricity duty bills, and to recover excess duty paid since May 2022. An interim application sought to direct respondents to collect electricity duty at the old rate of Rs. 0.06 paise per KWH pending disposal of the writ petition.

Key Issues

1. Whether the action of the first respondent in issuing G.O.Ms. No. 7, dated 08.04.2022, increasing the levy of electricity duty from Rs. 0.06 paise to Rs. 1/- per unit on energy sales to commercial and industrial consumers, is a colourable exercise of powers conferred under Section 31 of the Andhra Pradesh Electricity Duty Act, 1939, and therefore illegal, arbitrary, irrational, unreasonable, and in violation of Article 14 of the Constitution. 2. Whether the consequential action of the second respondent in seeking to levy electricity duty at the enhanced rate is in violation of the principles of natural justice and contrary to the common order on Tariff for retail sale of electricity for the financial year 2022-2023, dated 30.03.2022. Petitioner's Contentions: The petitioners argued that the increase in electricity duty was a colourable exercise of power, illegal, arbitrary, irrational, unreasonable, and constituted hostile discrimination, violating Article 14 of the Constitution due to excessive delegation. They also contended it was contrary to the tariff order and principles of natural justice. Revenue/State's Contentions: The judgment records that learned counsel on either side submitted that a batch of writ appeals and petitions with the same issue were pending, and an interim order was in operation in those matters. No specific arguments were detailed for the respondents.