State’s power to make laws on industrial alcohol can’t be taken away: Supreme Court

PTC News Desk: The Supreme Court's nine-judge Constitution panel ruled 8:1 in favour of states' ability to regulate industrial alcohol.

The Supreme Court reversed a 1990 seven-judge bench decision in the Synthetics and Chemicals case, which found otherwise and ruled in favour of the Centre, holding that states cannot claim to regulate industrial alcohol even under the Concurrent List.

The majority verdict was made by CJI DY Chandrachud, Justices Hrishikesh Roy, AS Oka, JB Pardiwala, Ujjal Bhuyan, Manoj Misra, SC Sharma, and AG Masih.

Justice BV Nagarathna wrote the dissenting opinion, arguing that only the Centre has the legislative authority to control industrial alcohol.

The Bench, led by Chief Justice of India D Y Chandrachud, began hearing arguments on April 2 on whether state governments have the authority to regulate and control the sale, distribution, pricing, and other aspects of 'industrial' alcohol. Industrial alcohol is a raw ingredient used to manufacture other products and is not intended for human use.

Excise duty on alcohol is a significant source of revenue for states, and states often impose additional excise duty on alcohol consumption to boost revenue.

Previously, in 1989, a 7-judge Constitution Bench ruled that states' powers under Entry 8 of the State List were confined to the regulation of "intoxicating liquors," which are different from industrial alcohol.