Supreme Court Upholds State’s Power to Regulate Industrial Alcohol

Supreme Court Upholds State’s Power to Regulate Industrial Alcohol

Sub : Polity

Sec: Federalism

Why in News

The Supreme Court of India, in a landmark ruling, upheld the authority of State legislatures to regulate industrial alcohol. A Constitution Bench comprising nine judges delivered this judgment, which has significant implications for the federal structure of governance in India, especially regarding the regulation of industrial and potable alcohol.

Majority Judgment by the Supreme Court:

An 8:1 majority judgment was delivered by a Constitution Bench.

Chief Justice, authoring the majority opinion, held that industrial alcohol falls under the category of “intoxicating liquor” as defined in Entry 8 of the State List under the Seventh Schedule of the Indian Constitution.

This ruling confirms that States have the authority to regulate the production, possession, transport, and sale of industrial alcohol.

Entry 8 of the State List:

• Entry 8 gives States the power to regulate the production and sale of intoxicating liquor.
• The Supreme Court interpreted “intoxicating liquor” to include industrial alcohol that can be used in products like rectified spirit, extra neutral alcohol (ENA), and denatured spirit, all of which are raw materials for the production of potable alcohol.
• The Court held that this broad definition helps prevent the misuse of alcohol that could harm public health.
• Subject Matter of Entry 8 of the State List: Pertains to the production, manufacture, possession, transport, purchase, and sale of intoxicating liquor. States have the authority to regulate intoxicating liquors within their jurisdiction.
• Includes both potable alcohol and alcohol that could be used noxiously, such as industrial alcohol and rectified spirit.

Entry 52 of the Union List:

• Grants the Union exclusive legislative power over industries declared by law to be under its control.
• The Parliament must declare by law that Union control is necessary for public interest. Once declared, Union control overrides the State’s power to legislate under Entry 24.
• Generally, applies to industries of significant national importance, requiring uniform regulation across the country.
• The Centre had argued that it holds exclusive control over industrial alcohol based on Entry 52 of the Union List, which refers to industries regulated in public interest by Parliament.
• The Court clarified that Entry 52 of the Union List cannot override Entry 8 of the State List.
• The Union government claimed that regulating industrial alcohol was essential for national interests and public policy. The judgment stated that Parliament could not claim control over the entire alcohol industry by invoking Entry 52.

Seventh Schedule of the Indian Constitution

• Article 246stands as the architect of the 7th Schedule, outlining the Union List, State List, and Concurrent List.
• The Union List,comprising 100 subjects, vests exclusive legislative authority in the Parliament.
• The State List, encompassing 61 subjects, confers power upon state legislatures for independent decision-making.
• The Concurrent List, housing 52 subjects, illustrates the shared jurisdiction between the Center and the States.