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2025 DAILYLAW 34759 (AP)

Facor Alloys Limited, v. The State of Andhra Pradesh,

WP/27957/2023 · 2025-07-02

Subba Reddy Satti

body2025

Judgment text

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APHC010542102023 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: 27957/2023 Between: 1. FACOR ALLOYS LIMITED,, A COMPANY ESTABLISHED UNDER COMPANIES ACT 1956 HAVING ITS REGISTERED OFFICE AND UNIT AT GARIVIDI, SRIRAM NAGAR, VIZIANAGARAM DISTRICT REPRESENTED BY ITS LIAISON OFFICER, SRI. MUKKAVILLI VENKAT RAM WITH SERVICE CONNECTION NO.VZMO35 ...PETITIONER AND 1. THE STATE OF ANDHRA PRADESH, REPRESENTED BY ITS PRINCIPAL SECRETARY, DEPARTMENT OF ENERGY, SECRETARIAT, VELAGAPUDI, GUNTUR DISTRICT. 2. EASTERN POWER DISTRIBUTION COMPANY OF ANDHRA PRADESH LTD, REPRESENTED BY ITS CHAIRMAN AND MANAGING DIRECTOR, PANDT COLONY, SEETHAMMADHARA, VISAKHAPATNAM. 3. SUPERINTENDING ENGINEER, OPERATION CIRCLE, EASTERN POWER DISTRIBUTION CO. OF ANDHRA PRADESH LTD., V IZIANAGARAM. 4. SENIOR ACCOUNTS OFFICER, EASTERN POWER DISTRIBUTION CO. OF ANDHRA PRADESH LTD., VIZIANAGARAM. ...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 2 pleased topleased to issue an appropriate Writ, Order or Direction, more particularly in the nature of a mandamus declaring the action of the respondents in not refunding the excess electricity duty of 0.94 paisa per unit levied and collected from the petitioner for the period April, 2022 to August, 2023 as directed by this Hon'ble Court vide Common Order dated 15.09.2023 in W.P.No.16619 of 2022 and batch and further insisting the petitioner to pay the instalments of C.C. dues and other arrears against the Service Connection No. VZMO35 of the Petitioner Unit without considering the representation of the petitioner dated 18.09.2023 for adjusting the same from the excess electricity duty paid as arbitrary, illegal, unjust, contrary to being violative of the petitioners rights guaranteed under Article 14 and 19(1)(g) of the Constitution of India IA NO: 1 OF 2023 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 pleased to direct the respondents not to take any coercive measures including that of disconnection of petitioner's service connection number VZMO35 on account of non¬payment of C.C. arrears without refunding the excess electricity duty collected from the petitioner for the period April, 2022 to August, 2023 Counsel for the Petitioner: 1. S.V.S.S.SIVA RAM Counsel for the Respondent(S): 1. GP FOR ENERGY 2. V V SATISH (SC for APEPDCL) 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 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 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 4 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. 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 5 292 THE HON’BLE SRI JUSTICE SUBBA REDDY SATTI WRIT PETITION No.27957/2023 Dated: 03.07.2025 SNI