The Supreme Court said that the right to make laws on industrial liquor belongs to the states, it cannot be taken away. The bench of 9 judges overturned the decision of the bench of 7 judges, which had said that the Center has the right to regulate industrial liquor.
In the year 2010, this case was transferred to a bench of 9 judges. This case was heard continuously for 6 days in April this year. After this the Supreme Court had reserved the decision. Today a bench of 9 judges gave the verdict with a majority of 8:1. Justice BV Nagarathna opposed the decision.
Industrial alcohol is an impure form of ethanol. It is generally used as a solvent. This is not for people to drink. To avoid unauthorized consumption, industrial alcohol is also sold with nausea inducing substances added to it.
What case did SC have?
The case was whether state governments have the power to regulate and control the sales, distribution and pricing of industrial alcohol or not. Industrial alcohol is used in the manufacturing of pharmaceuticals, disinfectants, chemicals and even biofuels.
Supreme Court said – State has the right to tax industrial liquor
Industrial liquor falls under the definition of intoxicating liquor under Entry 8 of List II of the Constitution, which empowers states to regulate and tax its production. The power of the State to make laws on industrial liquor cannot be taken away.
Petitioners said- power to tax industrial liquor is necessary
The petitioners had argued that the power to impose tax on industrial liquor is important after GST. This is an important source of income for the states. He also argued that if the power to regulate industrial liquor goes to the Centre, their hands will be tied in terms of dealing with illegal consumption of industrial liquor.
The petitioners also tried to convince the court through the technical process of industrial liquor production that all liquor is 'intoxicating' whether potable or not.
Center said- Center has the power to regulate industrial liquor
The Center argued that the power to regulate industrial liquor has always been theirs. Entry 8 of the State List has nothing to do with liquor which is not potable.
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