M/S. Vital Paper Products Private Limited vs. The State Of Andhra Pradesh

Held

The High Court disposed of the writ petition in terms of a common order previously passed by a Division Bench of the same Court in W.P.No.29672 of 2023 & batch dated 26.06.2025. The Division Bench's order, which the present writ petition followed, struck down G.O.Ms.No.7, dated 08.04.2022. However, it clarified that the government was 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 was 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, amendments granting power to identify consumer categories for tariff fixing and amendments to Section 7 by Act 23 of 2024 were struck down. The proviso to Section 3 regarding a minimum duty of 6 paise per unit remained unaffected. 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.

Facts

The petitioner, M/s. Vital Paper Products 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 purportedly increased the levy of electricity duty from Re.0.06 per unit to Re.1.00 per unit. The petitioner contended that this action was arbitrary, unreasonable, excessive, and violative of Articles 14 and 21 of the Constitution, as well as contrary to the National Tariff Policy, 2016. The petitioner sought to set aside the said G.O. concerning its electricity consumption. The matter was listed before the High Court on 30.06.2025.

Key Issues

1. Whether G.O.Ms.No.7, Energy (Power-III) Department, dated 08.04.2022, which exorbitantly increased 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, as contended by the petitioner? Petitioner's Arguments: The petitioner argued that the increase in electricity duty by G.O.Ms.No.7 was arbitrary, unreasonable, excessive, and violated fundamental rights under Articles 14 and 21 of the Constitution. They also contended that it was contrary to the National Tariff Policy, 2016. The petitioner sought to have the G.O. set aside in so far as it affected them. Respondent's Arguments: The judgment does not record specific arguments made by the respondents. However, the context implies they would defend the validity of the Government Order and the State's power to levy electricity duty.