M/S. Daiki Aluminium Industry INDIA Private Limited vs. The State Of Andhra Pradesh

Held

The High Court disposed of the writ petition in terms of the common order passed by the 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 of publication of Act 10 of 2021 in the Gazette until the rate of duty is modified in accordance with law. The Division Bench also upheld the amendment to Section 3 of the Andhra Pradesh Electricity Duty Act, 1939, by Act 23 of 2024, to the extent of granting power to the government to fix the rate of duty between six paise to one rupee per unit. Conversely, it set aside the amendment to Section 3 by Act 10 of 2021 and Act 23 of 2024, regarding the power to identify categories of consumers for tariff fixing, and struck down amendments to Section 7 by Act 23 of 2024. The proviso to Section 3, stipulating a minimum duty of 6 paise per unit in the absence of notification, remained unaffected. G.O.Ms.No.22, dated 23.10.2024, was also struck down, but G.O.Ms.No.277, dated 09.12.1994, remained in force, permitting licensees to recover duty at 6 paise per unit, subject to exemptions.

Facts

The petitioner, M/s. Daiki Aluminium Industry India Private Limited, filed a writ petition challenging G.O.Ms.No.7, Energy (Power-III) Department, dated 08.04.2022, issued by the State of Andhra Pradesh. This Government Order (G.O.) purportedly increased the levy of electricity duty from Re.0.06 per unit to Re.1.00 per unit. The petitioner contended that this increase was arbitrary, unreasonable, excessive, and violative of Articles 14 and 21 of the Constitution of India, as well as contrary to the National Tariff Policy, 2016. The petitioner sought to set aside the said G.O. in so far as it affected them and sought interim suspension of its operation. The matter was listed before the High Court on 30.06.2025.

Key Issues

1. Whether the action of the first respondent in issuing G.O.Ms.No.7, Energy (Power-III) Department dated 08.04.2022, exorbitantly increasing the levy of 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, in exercise of powers conferred under Section 3(1) of the Andhra Pradesh Electricity Duty Act, 1939. Petitioner's Contention: The petitioner argued that the increase in electricity duty was arbitrary, unreasonable, excessive, and violated constitutional provisions and national policy. The petitioner relied on the affidavit filed with the writ petition. Revenue/State's Contention: The judgment records that learned counsel appearing on either side would submit that the issue involved in this writ petition is covered by a common order passed by the Division Bench of the High Court in W.P.No.29672 of 2023 & batch dated 26.06.2025. No specific arguments were recorded for the respondents beyond this submission.