Vision Drugs (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 26.06.2025. The Division Bench order upheld the amendment to Section 3 of the Act by Act 23 of 2024, granting the government power to fix the duty rate between six paise and one rupee per unit. However, it set aside amendments by Act 10 of 2021 and Act 23 of 2024 to the extent they granted power to identify consumer categories for fixing tariff rates. The proviso for a minimum duty of 6 paise per unit in the absence of notification remained unaffected. Amendments to Section 7 by Act 23 of 2024 were struck down. Crucially, G.O.Ms.No.7, dated 08.04.2022, was struck down. The government was entitled to collect duty at 6 paise per unit from the date Act 10 of 2021 was gazetted until the rate was modified according to law. Exemptions for agricultural consumers under G.O.Ms.No.82 remained in force. G.O.Ms.No.22 was also struck down, but G.O.Ms.No.277 remained in force, permitting licensees to recover duty at 6 paise per unit.

Facts

The petitioner, Vision Drugs (P) Ltd., challenged G.O.Ms.No.7, Energy (Power-III) Department, dated April 8, 2022, issued by the State of Andhra Pradesh. This Government Order (G.O.) purportedly increased the electricity duty from Rs. 0.06 per unit to Rs. 1.00 per unit on energy sales to commercial and industrial consumers. The petitioner argued this was an arbitrary and illegal exercise of power under Section 3(1) of the Andhra Pradesh Electricity Duty Act, 1939. 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 May 2023 onwards was also challenged. The petitioner sought to set aside the G.O. and the bills, and to direct the refund or adjustment of excess duty paid since April 2022.

Key Issues

1. Whether the action of the first respondent in issuing G.O.Ms.No.7, dated 08.04.2022, 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, under Section 3(1) of the Andhra Pradesh Electricity Duty Act, 1939. Petitioner's Contention: The petitioner argued that the G.O. was an arbitrary, illegal, unjust, unfair, unreasonable, and excessive exercise of power, violating constitutional rights, principles of natural justice, and relevant policies and regulatory orders. Revenue/State's Contention: The judgment does not record specific arguments from the respondents. However, it notes that learned counsel for both sides submitted that the issue was covered by a common order of the Division Bench in W.P.No.29672 of 2023 & batch dated 26.06.2025.