- The Supreme Court in a nine-judge bench judgement reversed an earlier seven-judge bench judgement, and upheld states’ right to regulate denatured spirit or industrial alcohol. Under List II of the Seventh Schedule of the Constitution, states are empowered to regulate the production, manufacture, possession, transport, purchase, and sale of intoxicating liquors.
- The Court was reviewing the division of power between the Union and states with respect to regulation and taxation of various types of alcohol. The Court examined whether the Union’s control of industries in public interest (Entry 52 of List I) overrides states’ right to regulate intoxicating liquors (Entry 8 of List II). The Court held that the Constitution empowers states to regulate intoxicating liquors from the stage of raw materials to its consumption. It further held that Parliament cannot enact a law to take control of the industry of intoxicating liquor. Doing so would lead to states losing their exclusive legislative competence to regulate such industry.
- Another question the Court examined was whether intoxicating liquors include alcohol other than potable alcohol. It held that intoxicating liquors under Entry 8 of List II covers all alcohol that could be used noxiously to the detriment of public health. This includes rectified spirits and industrial spirits (not fit for human consumption) used in the production of potable alcohol and other products.
18
Dec, 2024