A.P. Textile Mills Association v. State of Andhra Pradesh & Ors

#1. SRICHARAN TELAPROLU Counsel for the Respondent(S):

#1. VENKATA RAMA RAO KOTA SC FOR APSPDCL

#2. GP FOR ENERGY

#3. V V SATISH (SC for APEPDCL)

#4. METTA CHENDRA SEKHAR RAO 9 HCJ & RRR,J W.P.No.29672 of 2023 & batch Court made the following Common Judgment: (per Hon’ble Sri Justice R.Raghunandan Rao) All these matters are being disposed of by way of this common order as common issues are raised.

#2. Heard Sri B. Adinarayana Rao, learned Senior Counsel, Sri A. Ravinder, learned Senior Counsel, Sri K. Gopal Chowdary, Sri Sricharan Tellaprolu, Sri P. Narasimha Rao, Sri Challa Gunaranjan, learned counsel appearing for the petitioners, and learned Advocate General appearing for the respondents.

#3. The A.P. Electricity Duty Act, 1939 (hereinafter referred to as ―the Duty Act‖) was enacted for levying duty on the sale of electrical energy by ―licensees‖. The term Licensee was originally defined to mean any person licensed under the Indian Electricity Act, 1910 to supply energy or any person who was authorized under section 28 of the same Act to supply energy. This definition was amended to mean a person who has been granted a licence under section 14 of the Electricity Act, 2003. Prior to the impugned amendments, Duty, at the rate of 6 paise per unit, was levied on the Licensees, under Section 3 of the Duty Act. Under section 7, the Government, by way of previous sanction, could permit the licensees to pass on the Duty, to the consumers. Section 3A, empowered the Government to exempt payment of Duty. Section 3, prior to the amendments, which are under challenge, in the present batch of cases, reads as follows: 10 HCJ & RRR,J W.P.No.29672 of 2023 & batch

#3. Levy of a duty in certain sales of electrical energy. (1) Save as otherwise provided in sub-section (2), every licensee in the State of Andhra Pradesh shall pay every month to the State Government in the prescribed manner, a duty calculated at the rate of six paise per unit of energy, on and in respect of all sales of energy except sales to the Government of India for consumption by that Government or sales to the Government of India or a railway company operating any railway for consumption in the construction, maintenance or operation of the railway effected by the licensee during the previous month at a price of more than Twelve paise per unit and on and in respect to all energy which was consumed by the licensee during the previous months for purposes other than those connected with the construction, maintenance and operation of his electrical undertaking and which, if sold to a private consumer under like conditions, would have fetched a price of more than Twelve paise per unit. Provided that no duty under this sub-section shall be payable on and in respect of sale of energy effected – (a) by the Andhra Pradesh State Electricity Board to any other licensee; (b) by the National Thermal Power Corporation to the Andhra Pradesh State Electricity Board. (2) A licensee shall be exempt from duty under sub-section (1) in any month if in the previous month the total sales of energy effected by him at whatever price together with the energy consumed by him for purposes other than those connected with the construction, maintenance and operation of his electrical undertaking, did not exceed 16,666 units: together with Provided that if at the end of any financial year, it is found that in such year the total sales of energy effected by the licensee at whatever price the energy consumed by him for purposes other than those connected with the construction, maintenance and operation of his electrical undertaking, were not less than 2,00,000 units, the licensee shall pay the duty in respect of any month or months comprised in such year in which the total of the sales and of the consumption as aforesaid did not exceed 16,666 units. (3) Where a licensee holds more than one licence duty shall be calculated and levied under this section separately in respect of each licence. (4) Where a licensee who is liable to pay duty under this section sells energy the Government of India 11 HCJ & RRR,J W.P.No.29672 of 2023 & batch consumption by that Government or to a railway company operating any railway for consumption, in the construction, maintenance or operation of that railway, the price charged on such sales shall be less by the amount of the duty than the price charged to other consumers of a substantial quantity of energy, provided the price last mentioned is more than twelve paisa per unit. In this sub-section, the expression 'price charged to other consumers' shall include the duty, if any, recoverable from the consumer under sub-section (1) of Section 7. Explanation. - The expression 'railway' in this section and in Section 9 shall have the meaning assigned to it in clause (20) of Article 366 of the Constitution.‖

#4. Sections 2 and 3 of the Duty Act were amended by Act 10/2021. These amendments were as follows:

#1. xxxx

#2. In the Andhra Pradesh Electricity Duty Act, 1939 (hereinafter referred to as the Principal Act), in Section 2, for sub-clause (i) of clause (b), the following shall be substituted, namely, (Amendment of Section 2. Act No.5 of 1939, Central Act No.36 of 2003). ―(i) a person who has been granted a license under Section 14 of the Electricity Act, 2003‖

#3. (Amendment of Section 3) ―3. In Section 3 of the Principal Act, in sub-section (1), for the words ―a duty calculated at the rate of six paise per unit of energy‖, the words ―a duty calculated at the rate notified by the State Government from time to time for different consumer categories‖, shall be substituted.‖

#5. After this amendment, the Government of A.P. issued G.O.Ms.No.7, dated 08.04.2022, which reads as follows: GOVERNMENT OF ANDHRA PRADESH ABSTRACT 12 HCJ & RRR,J W.P.No.29672 of 2023 & batch Andhra Pradesh Electricity Duty Act, 1939 – Levy of duty on certain sales of energy under Section 3(1) of the A.P. Electricity Duty Act, 1939 – Notification – Issued. ______________________________________________ ENERGY (POWER-iii) DEPARTMENT G.O.MS.No.7 Date:08.04.2022

#1. Andhra Pradesh Electricity Duty (Amendment) Act, 2003 (A.P. Act No.14 of 2003)

#2. The Electricity Act, 2003

#3. Act 10 of 2021, Andhra Pradesh Electricity Duty Amendment) Act, 2020. **** ORDER: Whereas State Government levied electricity duty @6 paise per unit on all the sales of electrical energy from the year 1994, except to the exempted categories; and whereas, sub section (1) of Section 3 of Electricity Duty Act 1939 as amended by Act 10 of 2021, empowered the State Government to notify the rate of electricity duty from time to time to be paid by different consumer categories Consumers on energy sales.

#2. Whereas, in other States like Maharashtra, Madhya Pradesh, Karnataka, Odisha, Tamil Nadu, West Bengal, Gujarat and Kerala the electricity duty is as a percentage of consumption charges. Precisely, in the States of Gujarat, Karnataka, Madhya Pradesh, Maharashtra, Himachal Pradesh, Kerala Manipur, Punjab, West Bengal and Jammu & Kashmir the rate of duty is from 14 paise to 180 paise per unit sale of energy, whereas in the State of Andhra Pradesh, electricity duty is being levied @6 paise per unit only on all the sales of 13 HCJ & RRR,J W.P.No.29672 of 2023 & batch electrical energy from the year 1994 except the exempted categories.

#3. Whereas, post bifurcation of the erstwhile State of Andhra Pradesh, the successor State remained a predominantly agrarian one, with the agriculture sector contributing to 35.47% as per the advance estimates of GVA for the financial year 2021-22. Owning to the requirement of providing the necessary support to the agriculture sector, the State exchequer is having to endure a huge burden, in the form of agriculture subsidy to the State Distribution Utilities.

#4. Whereas, the gap between the ARR (Average Revenue Realization) and COS (Average Cost of Supply) has widened significantly over the years increasing the subsidy requirement from Rs.2,607 crores in financial year 2014-15 to Rs.11,123 crores in financial year 2022-23. The Average Cost of Supplying power approved by the Andhra Pradesh Electricity Regulatory Commission, has increased by 29.26% over the last seven years. A key reason that has primarily contributed to this increase in cost of service is the substantial increase in debt of the State public sector undertakings in power sector, over the period 2014-19. Inadequate release of subsidy during the period 2024-19 has also resulted in the Distribution utilities and AP GENCO availing huge working capital liabilities to sustain operations. Cost associated with servicing of this debt was partly allowed by APERC while determining the tariff and this has contributed to an increase in the subsidy component. If the disallowed portion is also taken into consideration, the subsidy requirement Government is higher. 14 HCJ & RRR,J W.P.No.29672 of 2023 & batch

#5. Whereas, the economic recovery from the Covid – 19 pandemic led disruptions has resulted in a steep rise in the demand for power and the coal production in the Country is not adequate to meet the higher requirements of the thermal power plants, leading to increase in cost of power available in power exchanges. Added to this, the geopolitical tensions have resulted in an unprecedented surge in the costs of import coal and also the crude oil prices, indirectly impacting the mining costs of coal. Owing to these reasons, the subsidy burden on the Government is likely to be higher than what is anticipated. In view of the above, there is imperative need for the State Government to augment revenue by tapping all available sources.

#6. Whereas, due to the above compelling reasons, State Government have inevitable need enhance the electricity duty.

#7. Now, therefore, the Government have decided to revise electricity duty on energy sales for different categories of Consumers in exercise of the powers conferred by Sub-Section (1) of Section 3 of the Andhra Pradesh Electricity Duty Act, 1939.

#8. Accordingly, the following notification will be published in the extraordinary issue of Andhra Pradesh Gazette: NOTIFICATION In exercise of the powers conferred by sub-section (1) Section 3 of the Andhra Pradesh Electricity Duty Act, 1939, the Government of Andhra Pradesh hereby levy an electricity duty of 1 (one) rupee per kWh (unit) on energy sales for the Commercial and Industrial Consumers as indicated in the relevant yearly Retail Supply Tariff Order issued by Hon’ble APERC. For Domestic Consumers, the 15 HCJ & RRR,J W.P.No.29672 of 2023 & batch existing electricity duty of 6 paise per KWh (unit) shall continue to be levied, while Agriculture consumers shall be exempted from levy of any such duty.

#9. The notification shall come force with immediate effect. (BY ORDER AND IN THE NAME OF THE GOVERNOR OF ANDHRA PRADESH) Sd/- B. Sreedhar Secretary to Government‖

#6. By virtue of the aforesaid Amendment Act and G.O.Ms.No.7 dated 08.04.2022, the rate of electricity duty, payable by the licensee, on the sales made to commercial and industrial consumers, had been increased from six paise per unit to Rs.1 per unit. The rate of duty remained at six paise per unit for domestic consumers and the sales made to agricultural consumers were exempted from levy of any duty. It may also be noted that even earlier, electricity sold to agricultural consumers had already been exempted from Duty, by way of G.O.Ms.No.82 dated 08.04.2003. The licensees sought to collect the enhanced duty from the consumers. Aggrieved by this increase of duty, and the attempts of the licensees, to collect this enhanced duty, various commercial and industrial category consumers filed writ petitions before this Court (for ease of reference, the petitioners, in this batch and the various other consumers who have subsequently joined the litigation, by way of fresh writ petitions are hereinafter referred to, compendiously, as petitioners) All these writ petitions came to be disposed of by a learned Single Judge of this Court, by his order, dated 15.09.2023, in W.P.No.16619 of 2022 and batch. 16 HCJ & RRR,J W.P.No.29672 of 2023 & batch

#7. The petitioners had raised various contentions, before the learned single judge. The primary contentions, which are relevant for the purposes of this batch of cases, were: A) There is hostile discrimination against commercial and industrial consumers, as they are being singled out for additional taxation, though they are in the same category of consumers. B) There is no reasonable differentia to exempt domestic and agricultural consumers, from payment of duty. C) The fixation of tariff, by the Andhra Pradesh Electricity Regulatory Commission, (herein after referred to as APERC), under the provisions of the Electricity Act, 2003 takes in to account the question of subsidy and cross subsidy. The tariff order, of 30.03.2022, passed by APERC had taken in to account these issues and consequently the government could not have issued G.O.Ms.No.7, on 08.04.2022, increasing the rate of duty, for the purposes of subsidizing sale of power to agricultural consumers. D) The Appellate Tribunal, under the Electricity Act, 2003 had stipulated that the upper limit of cross subsidy, between different consumers, cannot cross 120% of the cost of supply and the present increase takes the cost of supply beyond this limit. 17 HCJ & RRR,J W.P.No.29672 of 2023 & batch E) The Licensees cannot collect the duty from the consumers, beyond 6 paise per unit, as there is no previous sanction, under Section 7 of the Duty Act.

#8. The learned Single Judge, after hearing both sides, formulated the following, as the issues which arise for consideration: A. Whether G.O.Ms.No.7, Energy (Power-III) Department, dated 08.04.2022, deserves to be quashed on the grounds of - (1) Colourable exercise of power; (2) Violating Article 14 of the Constitution of India by imposing duty on industrial and commercial consumers of electricity, but granting exemption to agricultural consumers as also for the rte of duty being unreasonable and excessive; B. Whether the licensees can recover the duty imposed on them, from the petitioners / consumers, under Section 7 of the APED Act? C. Whether the petitioners / Alloy Industries have to pay the same duty? D. Whether the petitioners / cold storage industries are agriculture consumers and exempted from payment of duty?

#9. The learned Single Judge, after considering these issues, had observed that there was no challenge to Act 10 of 2021 or the amended or un- amended provisions of Section 3 of the Duty Act and to the classification of 18 HCJ & RRR,J W.P.No.29672 of 2023 & batch electricity energy consumers, and that the challenge was only to G.O.Ms.No.7 dated 08.04.2022.

#10. The learned Single Judge, after considering the submissions made by both sides, had summarized his findings and decided the issues formulated by him, in the following manner:

#189. Accordingly, this Court holds as under: (a) Point No.A (1) and (2): The G.O.Ms.No.7, dated 08.04.2022, does not suffer from vice of colourable exercise of power, nor violative of Article 14 of the Constitution of India. (b) Point No.B: The licencees can recover duty from the petitioners / consumers only @ 6 paisa kWh under the sanction order under G.O.Ms.No.277, dated 09.12.1994, and not in excess thereof. There is no other previous sanction of the State Government for any amount of duty now imposed on licensees, in excess of 6 paisa kWh. (c) Point No.C: The petitioners / Alloy Industries have to pay the same duty as in Point No.B (supra), unless they are granted exemption under the statutory provisions. (d) Point No.D: The petitioners / Cold Storage industries failed to establish that they are agricultural consumers. Consequently, they are not exempted from payment of duty, in terms of Point B (supra).

#190. In the result, 19 HCJ & RRR,J W.P.No.29672 of 2023 & batch i. The challenge impugned G.O.Ms.No.7, Energy (Power-III) Department, dated 08.04.2022, fails. The writ petitions are dismissed to that effect. ii. The demand notices by licensees to the petitioners in excess of @6 paise kWh, to the extent of excess, cannot be enforced. iii. It is clarified that the petitioners shall have to pay duty @6 paise kWh, subject to any other previous sanction of State Government under Section 7 of APED Act for the rate of duty in excess of 6 paisa kWh. iv. The petitioners / consumers are granted liberty to file applications before their respective licensees for refund or adjustment of the excess amount of the duty, if paid by them, in excess of 6 paise kWh, upon which, the respective licensees shall proceed accordingly. v. All the writ petitions are allowed in part in the aforesaid terms.

#11. The learned single judge had held that Duty to the extent of 6 paise per unit, could be passed on to the consumers on account of G.O.Ms.No.277, dated 09.12.2024, which reads: ―2. After careful examination of the above issue and in exercise of the powers under sub-section (1) of Section 7 of the Andhra Pradesh Electricity Duty Act, 1939, as amended from time to time the Government hereby accord permission to Andhra Pradesh State Electricity Board to recover the Electricity Duty from any consumer or class of consumers, to whom energy is sold at a price of more than 12 paise per unit 20 HCJ & RRR,J W.P.No.29672 of 2023 & batch and who fall under the durable categories, except consumers using Low Tension Electrical energy for agricultural purposes, at an effective tariff rate, presently below twelve paise per unit the duty, which falls to be paid the Board with effect from 01.12.1993, at the rate of six paise per unit on the energy sold, subject to the following conditions:- ….‖

#12. Aggrieved by this judgment, both the petitioners as well as the State preferred appeals before this Court. During the pendency of the writ appeals, the government, apparently to get over the finding of the learned single judge that, on account of absence of previous sanction, the duty of one rupee per unit, levied on the licensees, cannot be collected, beyond 6 paise per unit, had issued G.O.Ms.No.22, dated 23.10.2023, according permission licensees to recover electricity duty, at the rates notified G.O.Ms.No.7, dated 08.04.2022 from the consumers / class of consumers against whom such rates had been notified. This G.O., as well as G.O.Ms.No.7 and the amendment, to Section 3(1) of the Duty Act, brought in by Act 10 of 2021, came to be challenged by way of W.P.No.29672 of 2023 and batch.

#13. The petitioners, in W.P.No.29672 of 2023 and batch, apart from assailing G.O.Ms.No.7, Act 10 of 2021 and, G.O.Ms.No.22, dated 23.10.2023, on various grounds, had also contended that Act 10 of 2021 had never been notified and as such never came into effect. Consequently, G.O.Ms.No.7, which is based on Act 10 of 2021, would also fail. The petitioners also contended that G.O.Ms.No.22, which empowered the licensees to collect the 21 HCJ & RRR,J W.P.No.29672 of 2023 & batch duty levied on them, from the consumers, would at best, only operate prospectively, from 23.10.2023 and there can be no collection of duty, beyond 6 paise per unit till 23.10.2023.

#14. While the batch of writ appeals and W.P.No.29672 of 2023 and batch were pending, Act 10 of 2024 was enacted to give retrospective effect to Act 10 of 2021, to take away the complaint that Act 10 of 2021 was not notified. The Duty Act was again amended, by way of Act No.23 of 2024, with retrospective effect from 26.08.2021, to answer the contentions that there was no previous sanction for collection of electricity duty up to 23.10.2023. This Act amended Section 3(1) as well as Section 7(1) of the Electricity Duty Act.

#15. As can be seen from the legislative developments, the objections being raised by the petitioners, to each of the impugned Amendment Acts, as well as G.Os were sought to be rectified by way of fresh amendments and G.Os. These amendments have culminated in Act 23 of 2024, which has effectively subsumed all the earlier amendments. Act No. 23 of 2024 has been challenged by way of W.P.No.3017 of 2025 and batch.

#16. The issues that arise, on the basis of the submissions made by either side, for the consideration of this court, are:

#1. Whether the amendment to Section 3 of the Duty Act, by Act 23 of 2024 is valid and within the limits of delegated legislation and whether Act 10 of 2021, as validated by Act 10 of 2024 needs to be gone into? 22 HCJ & RRR,J W.P.No.29672 of 2023 & batch

#2. Whether the amendments, to Section 7 of the Duty Act, by Act 23 of 2024 is valid?

#3. Whether G.O.Ms.No.7, dated 08.04.2022 is valid?

#4. Whether G.O.Ms.No.22, dated 23.10.2024 is valid? ISSUE NO.1 Whether the amendment to Section 3 of the Duty Act, by Act 23 of 2024 is valid and within the limits of delegated legislation and whether the validity of Act 10 of 2021, as validated by Act 10 of 2024 needs to be gone into?

#17. The changes brought in by the two amendment Acts in Section 3(1) read as follows: Section 3(1) prior to its amendment) (As stood Section 3(1) (as amended by Act No.10 of 2021) Section 3(1) (as amended by Act No.23 of 2024) otherwise Save in sub-section provided (2), every licensee in the State of Andhra Pradesh shall pay every month to the State Government in the prescribed manner, a duty calculated at the rate of (six paise) per unit of energy, on and in respect of all sales of energy except sales to the Government of India for consumption Government or sales to the Government of India or company a operating any railway for consumption construction, maintenance or operation of the railway) effected by the licensee railway Save otherwise provided in sub-section (2) every licensee in the State of Andhra Pradesh shall pay every month to the State Government in the prescribed manner, a duty calculated at the rate the State notified by Government from time for different consumer categories, on and in respect of all sales of energy except sales to the Government of India for consumption by that Government or sales to the Government of India or a company operating any railway for consumption construction, maintenance railway Save as otherwise provided (2) every in sub-section licensee the State of Andhra Pradesh shall pay every month to the State Government prescribed manner, a duty calculated at the State notified by Government from time to different consumer categories which shall not be less than 6 paise (Rs.0.06) per unit of energy and not be than 100 Paise, (Rs.1.00 rupee) per unit of energy, on and in respect of all sales of energy except sales to the Government of India for consumption by that Government or sales to during the previous month at a price of more than (Twelve paise) per unit (and on and in respect to all energy which was consumed by the licensee during previous months for purposes other than those connected with construction, maintenance operation of his electrical undertaking and which, if sold to a private consumer conditions, would have fetched a price (Twelve of more paise) per unit. Provided that no duty sub-section shall be payable on and in respect of sale of energy effected (a) by the Andhra Pradesh State Electricity Board licensee; (b) National Thermal Power Corporation to the Andhra Pradesh State Electricity Board. 23 HCJ & RRR,J W.P.No.29672 of 2023 & batch or operation of the railway) effected by the licensee during the previous month at a price of more than (Twelve paise) per unit (and on and in respect to all energy which was consumed by the licensee during previous months for purposes other than those connected with construction, maintenance operation of his electrical undertaking and which, if sold to a private consumer conditions, would have fetched a price of more (Twelve paise) per unit. that no duty Provided sub-section shall be payable on and in respect of sale of energy effected (a) by the Andhra Pradesh State Electricity Board licensee; (b) National Thermal Power Corporation to the Andhra Pradesh State Electricity Board. the Government of India or a railway company operating any railway for consumption construction, maintenance or operation of the railway) effected by the licensee during the previous month at a price of more than (Twelve paise) per unit (and on and in respect to all energy consumed by the licensee during the previous months for purposes other those connected with construction, maintenance electrical undertaking and which, if sold to a private consumer conditions, would fetched a price of more than (Twelve paise) per unit. operation Provided that no duty under this sub-section shall be payable on and in respect of sale of energy effected (a) the Andhra Pradesh State Electricity Board any other licensee; (b) by the National Thermal Power Corporation to the Andhra Pradesh State Electricity Board. Provided further that in the absence of any rate of duty notified by the State Government for different consumer categories at a minimum duty of 6 paise (Rs.0.06) per unit of energy shall be levied. time, 24 HCJ & RRR,J W.P.No.29672 of 2023 & batch

#18. By virtue of Act 10 of 2021, the fixed rate of duty of 6 paise per unit was changed to a rate of duty which would be fixed by the Government. Further, the Government could also fix different rates of Duty for electricity sold to different categories of consumers, with complete discretion being given to the Government to decide the basis on which consumers are to be categorized.

#19. This amendment is challenged, by the petitioners, on the following grounds: A) The levy of duty on sale of electricity, which is in the nature of a Tax, can be done only by the State legislature, under Entry 53 of List II of the VII Schedule to the Constitution of India. It would also be open to the legislature to delegate certain parts of this exercise, after laying down guidelines, to the discretion of the executive. However, there are limitations on the extent to which such discretion can be delegated. The ratio laid down by the Hon'ble Supreme Court, in a series of judgments, is to the effect that essential legislative functions cannot be delegated and any delegation would have to meet the test of whether such delegation has been made after laying down guidelines and limits. Failure to lay down such guidelines and limits would render such delegation invalid and void. B) The guidelines and limits have to be discernible in the Legislation itself and such guidelines and limits cannot be imported from any other source. There is nothing, either in the preamble or the scheme of the Duty 25 HCJ & RRR,J W.P.No.29672 of 2023 & batch Act, to discern any policy or guidelines, for exercise of discretion by the executive. C) The delegation of fixing the rate of tax, without prescribing a maximum limit, and the delegation of discretion, in determining categories of consumers, without prescribing the basis on which such categories are to be determined, is beyond the valid limits of delegation. This would amount to delegation of essential legislative powers. Hence, all the amendments are invalid and have to be struck down. D) The Amendment, to Section 3 of the Duty Act, by Amendment Act 10 of 2021, is still born as the amendment Act was not notified. E) Section 12 (4) of the Andhra Pradesh Electricity Reforms Act, 1998, casts a duty on the Government to consult the APERC, before enacting any law relating to the field of electricity. No such consultation was carried out, before Act 10 of 2021 or Act 23 of 2024, were enacted. This lack of consultation is sufficient to invalidate the Amendment Acts. Reliance is placed on M.P. Cement Manufacturers Association vs. State of M.P.1 Further, the slight difference in the phraseology of the Madhya Pradesh Act, which was under consideration in the above judgment, and the language of the A.P. Reforms Act, does not make any difference for the application of the said judgment to the present case. 1 (2004) 2 SCC 249 26 HCJ & RRR,J W.P.No.29672 of 2023 & batch F) The levy of additional duty, is a form of cross subsidy and has to be set aside on the ground that such cross subsidy is violative of the requirement of the national tariff policy of 2016, capping the tariff at 120% of the cost of supply.

#20. The learned Advocate General, appearing for the State, at the stage of challenge to Act 10 of 2021, Act and G.O.Ms.No.7 and G.O.Ms.No.22 had sought to defend Act 10 of 2021 on the following grounds: A) Section 3 (1) of the Duty Act, is not bereft of legislative guidelines as it sets out the taxable event, the person who is to be taxed, the measure of tax, that is the duty on a per unit basis and consequently there is no excessive delegation. Reliance is placed on Union of India and another vs. Mohit Minerals Private Limited2 and Vivek Narayan Sharma and others vs. Union of India3. B) The objects and reasons in the Bill introduced for Act 10 of 2021, set out the reason for increase of electricity duty and the same is a sufficient guideline. C) The circumstances which prevailed, at the time the law was made, can be looked into for ascertaining the guidelines. The circumstances have been set out in the objects and reasons in the Bill and they provide sufficient guidelines. Reliance is placed in Shashikant Laxman Kale and