KEKULE PHARMA LIMITED,, SY. N0.38 v. THE STATE OF ANDHRA PRADESH

1. KEKULE PHARMA LIMITED,, SY. N0.38P, 39P, 48P, 49P AND SOP, (M), PLOT NO.24F, LALAM KODURU VILLAGE, RAMBILLI ATCHUTPURAM, ANAKAPALLI - 531061, REP. BY ITS GM - OPERATIONS, MR. RAMESH KUMAR. SERVICE CONNECTION NO.VSP2400. ...PETITIONER AND

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

EASTERN POWER DISTRIBUTION COMPANY OF ANDHRA ITS CHAIRMAN AND MANAGING SEETHAMMADHARA, T COLONY, PRADESH LTD, REP. BY DIRECTOR, VISAKHAPATNAM. AND P ...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 topleased to issue a Writ, Order or Direction more particularly one in the nature of Writ of Mandamus declaring the action of Respondents in issuing G.O.Ms.No.7 Energy (Power - III) Department dated 08.04.2022 where under the levy of Electricity Duty was increased from Rs.0.06 Raise per unit to Rs.1.00 Raise on the energy sales made to the commercial and industrial consumers as illegal, arbitrary, and contrary to law and consequently direct the Respondents and their subordinates to adjust the refundable amount in the future consumption bills of the Petitioners and to levy Electricity Duty @ Rs.0.06 Raise only from the Petitioners service connections 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 pleased to DIRECT the Respondents and their subordinates not to disconnect the power supply to the service connections of the Petitioners for recovery of Electricity Duty @ Rs.1/- per unit in pursuance of G.O.Ms.No.7 Energy (Power - III) Department dated 08.04.2022, pending disposal of the Writ Petition and Counsel for the Petitioner:

1. HARIKA PUNNAMI PINNAMANENI 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 passed by the Division Bench of this Court in W.P.No.29672 of 2023 & batch dated 26.06.2025.

The Division Bench of this Court inW.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.

…

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.

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

G.O.Ms.No.7, dated 08.04.2022 is struck down. However, 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.

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.”