M/S. Meenakshi Ice Plant Vs the State of Andhra Pradesh

M/S. MEENAKSHI ICE PLANT, 54-1-4, JAGANNAICKPUR, GOPIVARI STREET, KAKINADA, REP. BY ITS PROPRIETOR SMT. D.VEERAVENI W/O.SOMARAJU, AGED 53 YEARS, HINDU, BUSINESS, KAKINADA ELEC.S.C. NO.1451480306001366 L.T. III A INDUSTRIAL

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...PETITIONER

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AND

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THE STATE OF ANDHRA PRADESH, , ENERGY DEPARTMENT, SECRETARIAT, VELAGAPUDI, AMARAVATHI, GUNTUR DISTRICT , REP. BY ITS PRINCIPAL SECRETARY.

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THE ANDHRA PRADESH EASTERN POWER DISTRIBUTION CORPORATION LIMITED, REPRESENTED BY ITS CHAIRMAN AND MANAGING DIRECTOR, CORPORATE OFFICE, NEAR GURUDWARA, P AND T COLONY, SEETAMMADHARA, VISAKHAPATNAM. 530013.

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...RESPONDENT(S):

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Petition under Article 226 of the Constitution of India praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to issue a Writ, Order or Direction, more particularly one in the nature of Writ of Mandamus under Article 226 of Constitution of India by declaring the action of the 1st respondent in issuing G.O.M.S.NO. 7 , Energy (Power III) Department, dt 08-4-2022 by exorbitantly increasing the levy of Electricity Duty from Rs.0.06 per unit to Rs.1.00 on the energy sales made to the commercial and industrial consumers in the state of A.P in colorable exercise of the powers conferred under Sec. 3 (1) of the Andhra Pradesh Electricity Duty Act 1939 as revised from time to time , and the consequential action of

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the 2nd respondent in levying Electricity Duty at the enhanced rate interalia, by raising the L.T bills from April 2022 payable on 05th of every month and continuously to all the L.T Industrial consumers including petitioner's L.T industry., as arbitrary, illegal, unjust, unfair, unreasonable, excessive, violative of Fundamental and Constitutional Rights guaranteed under constitution of India, violative of Principles of Natural Justice, contrary to National Tariff Policy 2016, contrary to common order on Tariff for Retail sale of Electricity during the financial year 2022-23, passed by the Andhra Pradesh Electricity Regulatory Commission and contrary to law and thus to , consequently set aside the impugned G.O.M.S.NO.7 Energy (Power-III) Department dt 08-42022, as well as the aforesaid L.T. Electricity Bills issued to petitioner's M/s. Meenakshi Ice plant, situated at Jagannaickpur, Gopivari Street, Kakinada, E.G. District, from April 2022 and continuously as on this date to the extent of enhanced Electricity Duty by directing the 2nd respondent to refund/adjust the excess electricity duty paid by petitioner's L.T. S.C. No.1451480306001366 from the month of April 2022 as on this date and not to levy Electricity Duty at the enhanced rate immediately for all future electricity charges payable by their industry to the 2nd respondent and to pass

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IA NO: 1 OF 2024

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Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to suspend the operation of GOMS NO 7 Energy (Power -III) Departmental dt 08-04-2022 issued by the 1^st respondent pending disposal of the main writ petition and to pass

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IA NO: 2 OF 2024

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Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to vacate the interim order passed dated 22-01-2024 in WP no. 1335 of 2024 and dismiss the writ petition and pass

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Counsel for the Petitioner:

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1.P NARASIMHA RAO

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Counsel for the Respondent(S):

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1.V V SATISH (SC for APEPDCL)

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2.GP FOR ENERGY (AP)

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The Court made the following ORDER:

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Challenging the G.O.Ms.No.7 Energy (Power-III) Department dated 08.04.2022, the above writ petition has been filed.

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Today, when the matter is taken up for consideration, learned counsel appearing on either side would submit that the issue involved in this writ petition is covered by the common order dated 26.06.2025 passed by the Division Bench of this Court in W.P.No.29672 of 2023 & batch.

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The Division Bench of this Court in W.P.No.29672 of 2023 & batch dated 26.06.2025, observed as follows:

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“92. As can be seen from the above extract, this G.O. has been issued for permitting licensees to collect, from consumers, the Duty fixed under G.O.Ms.No.7. Since G.O.Ms.No.7, has been struck down, the question of granting sanction to collect Duty, fixed under G.O.Ms.No.7, would not arise. Accordingly, G.O.Ms.No.22 is also struck down. As this G.O. has been struck down, on this ground, this court is not going into the other contentions raised against this G.O.

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…

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For the aforesaid reasons, all the cases are disposed of in terms of the following order:

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The amendment to Section 3, 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 is upheld.

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The amendment to Section 3, by Act 10 of 2021 and Act 23 of 2024, to the extent of granting power to the government to identify categories of consumers, for purposes of fixing the rate of tariff is set aside.

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The proviso, to Section 3, stipulating that, in the absence of the rate of duty notified by the state government for different consumer categories at any given time, a minimum duty of 6 paise (Rs. 0.06) per unit of energy shall be levied, shall remain unaffected.

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The amendments to Section 7, by Act 23 of 2024, are struck down.

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G.O.Ms.No.7, dated 08.04.2022 is struck down. However, the government is entitled to collect Duty at the rate of 6 paise per unit, throughout the period from the date when Act 10 of 2021 was published in the Gazette till such time as the rate of duty is modified, in accordance with law. Further, the exemption granted to agricultural consumers under G.O.Ms.No.82, dated 07.07.2003, remains in force.

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G.O.Ms.No.22, dated 23.10.2024, is struck down. However, G.O.Ms.No.277, dated 09.12.1994, remains in force throughout the disputed period and the Licensees are permitted to recover Duty, at the rate of 6 paise per unit, from the consumers, subject to any exemption that may have been granted, or would be granted, under section 3A of the Duty Act.”

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Given the same, the Writ Petition is disposed of in terms of the common order dated 26.06.2025 passed by the Division Bench of this Court in W.P.No.29672 of 2023 & batch. No order as to costs.

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The Registry is directed to annex the copy of the common order dated 26.06.2025 passed by the Division Bench of this Court in W.P.No.29672 of 2023 & batch to this order.

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As a sequel, pending miscellaneous petitions, if any, shall stand closed.

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___________________________ JUSTICE SUBBA REDDY SATTI

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Dated: 03.07.2025 SNI

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307

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THE HON’BLE SRI JUSTICE SUBBA REDDY SATTI