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2025 DAILYLAW 22228 (AP)

M/s. Nero Steels Pvt. Ltd. v. THE STATE OF ANDHRA PRADESH

WP/15628/2025 · 2025-07-02

Subba Reddy Satti

body2025

Judgment text

Extracted from the PDF above. The PDF is authoritative.

APHC010312592025 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) [3331] THURSDAY,THE THIRD DAY OF JULY TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SRI JUSTICE SUBBA REDDY SATTI WRIT PETITION NO: 15628/2025 Between: 1. M/S. NERO STEELS PVT. LTD., REP. BY ITS CHAIRMAN RAHUL KOTA AGED ABOUT 28 YEARS, REG. OFC. FIRST FLOOR, 76-18-45, PLOT NO. 45, IRON COMPLEX, KRISHNA, VIJAYAWADA, ANDHRA PRADESH - 520012. CONSUMER NO. VJA4773 ...PETITIONER AND 1. THE STATE OF ANDHRA PRADESH, REP. BY IT'S PRINCIPAL SECRETARY, ENERGY DEPARTMENT AP SECRETARIAT, AMARAVATHI, GUNTUR DISTRICT. 2. THE CENTRAL POWER DISTRIBUTION COMPANY OF ANDHRA PRADESH LTD, REP BY ITS CHAIRMAN AND MANAGING DIRECTOR APCPDCL CORPORATE OFFICE, BESIDE POLYTECHNIC COLLEGE VIJAYAWADA KRISHNA DISTRICT. 520008 3. SUPERINTENDENT ENGINEER, OPERATION CIRCLE, VIJAYAWADA APCPDCL CORPORATE OFFICE, BESIDE POLYTECHNIC COLLEGE VIJAYAWADA KRISHNA DISTRICT. 520008 ...RESPONDENT(S): 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 writ, order, direction more particularly in the nature of writ of mandamus by declaring the action of respondents in levying the electricity duty on the petitioner at the rate of Rs.1/- per unit pursuant to the G.O.Ms.No. 7, Energy Power III Department, dt. 08-04-2022 without any prior sanction of the state government as mandated under section 7(1) of APED Act, 1939 as 2 illegal. arbitrary, exorbitant, unconstitutional and in violation of principles of natural justice, article 19,21 of the Indian constitution and against the orders passed by this hon'ble court in W.P.No.29987 of 2023 and batch and consequently direct the respondent no.2 to refund the excess amount paid by the petitioner in the name of electricity duty at the rate of Rs.1/- per unit for property of the Petitioner in which he is conducting its activities of business situated at,Ground Floor, Survey No. 144/3, near Agiripalli Road, Surampalle, Krishna, Vijayawada, Andhra Pradeshbearing HT Consumer No. VJA4773, and to pass IA NO: 1 OF 2025 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 direct respondent no.2 to levy electricity duty as per old rate of 0.06 paise per unit instead of Rs. 1/- per unit for property of the Petitioner in which he is conducting its activities of business situated at,Ground Floor, Survey No. 144/3, near Agiripalli Road, Surampalle,Krishna, Vijayawada, Andhra Pradeshbearing HT Consumer No. VJA4773pending disposal of the above writ petition and to pass Counsel for the Petitioner: 1. HETHU VSD SHRUTHIK MATURI Counsel for the Respondent(S): 1. GP FOR ENERGY The Court made the following ORDER: Challenging the G.O.Ms.No.7 Energy (Power-III) Department dated 08.04.2022, the above writ petition has been filed. 2. 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. 3. The Division Bench of this Court in W.P.No.29672 of 2023 & batch dated 26.06.2025, observed as follows: “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 3 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. 93. … 94. For the aforesaid reasons, all the cases are disposed of in terms of the following order: 1. 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. 2. 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. 3. 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. 4. The amendments to Section 7, by Act 23 of 2024, are struck down. 5. 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. 6. 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.” 4. 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. 4 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. As a sequel, pending miscellaneous petitions, if any, shall stand closed. ___________________________ JUSTICE SUBBA REDDY SATTI Dated: 03.07.2025 SNI 5 324 THE HON’BLE SRI JUSTICE SUBBA REDDY SATTI WRIT PETITION No.15628/2025 Dated: 03.07.2025 SNI