M/S. Gayathri Beverages 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's order held that the amendment to Section 3 of the Andhra Pradesh Electricity Duty Act, 1939, by Act 23 of 2024, granting power to the government to fix duty rates between six paise and one rupee per unit, is upheld. However, amendments by Act 10 of 2021 and Act 23 of 2024, granting power to identify consumer categories for tariff fixing, were set aside. The proviso for a minimum duty of 6 paise per unit in the absence of notification was 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 published until the rate was modified legally. G.O.Ms.No.22, dated 23.10.2024, was also struck down, with G.O.Ms.No.277, dated 09.12.1994, remaining in force, permitting licensees to recover duty at 6 paise per unit, subject to exemptions.

Facts

The petitioner, M/s. Gayatri Beverages, filed a writ petition challenging G.O.Ms.No.7, Energy (Power-III) Department, dated 08.04.2022, which exorbitantly increased the electricity duty from Rs.0.06 to Rs.1.00 per unit for commercial and industrial consumers. The petitioner contended that this action was arbitrary, illegal, and violative of constitutional rights, national policies, and regulatory commission orders. The respondent, Andhra Pradesh Eastern Power Distribution Corporation Limited (APEPDCL), consequently levied electricity duty at the enhanced rate, impacting the petitioner's electricity bills from November 2023. The petitioner sought to set aside the G.O. and the consequential bills, and to refund or adjust the excess duty paid since April 2022.

Key Issues

1. Whether the action of the 1st 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, in colourable exercise of powers under Section 3(1) of the Andhra Pradesh Electricity Duty Act, 1939? Petitioner's contention: The petitioner argued that the increased electricity duty was illegal and arbitrary, violating various legal and policy frameworks. They relied on the Andhra Pradesh Electricity Duty Act, 1939, National Tariff Policy 2016, and orders of the Andhra Pradesh Electricity Regulatory Commission. Respondent's contention: The respondent's arguments are not explicitly detailed in the provided text, but their action of levying the enhanced duty implies a defense of the G.O. and the underlying statutory powers.