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The Supreme Court of India has delivered a landmark judgment, asserting the right of state governments to legislate on the sale of 'industrial alcohol', also known as 'denatured spirits'. This decision, announced on Wednesday, overturns a 34-year-old ruling in the Synthetics and Chemicals Pvt Ltd vs State of Uttar Pradesh case and grants states the authority to include 'industrial alcohol' under the category of 'intoxicating liquor' within their respective State Lists.
The nine-judge Constitution Bench, led by Chief Justice DY Chandrachud, ruled in favor of the petitioning states, including Uttar Pradesh, Maharashtra, Bengal, and Kerala. The majority decision argued that the term 'intoxicating liquor' encompasses all liquids containing alcohol, regardless of their intended use. This interpretation extends the states' power to regulate such substances, even if they are not meant for human consumption.
Justice BV Nagarathna, the lone dissenting judge, countered this view, emphasizing that 'industrial alcohol' is specifically designed for industrial purposes and not intended for human consumption. She argued that the state legislatures lack the competence to regulate such substances. Justice Nagarathna maintained that the original decision in the Synthetics case was correctly decided.
The court's decision was reached after a six-day hearing where the petitioners argued that granting the central government control over 'industrial alcohol' would hinder their ability to address the issue of illegal consumption of such substances. The dissenting opinion, however, countered that argument, emphasizing the need to avoid stretching the scope of the State List simply because 'industrial alcohol' could be consumed illegally.
The verdict has significant implications for the distribution and regulation of alcohol in India. The ruling essentially cedes more power to state governments, allowing them to control the trade and production of 'industrial alcohol' within their jurisdictions. This decision could lead to a more localized approach to alcohol regulations, potentially shaping the way different states handle alcohol-related issues, including taxation and public health concerns.
The legal battle surrounding the regulation of 'industrial alcohol' highlights the ongoing debate about the balance of power between the central government and state governments in India. The Supreme Court's decision in this case reaffirms the federal structure of the Indian government, while also recognizing the need for states to have authority over matters that directly impact their citizens.
Source: In Landmark Verdict, Top Court Says States Can Rule On 'Industrial Liquor'