Headline
The Supreme Court of India under entry 8 permits states to regulate and tax industrial alcohol.
Summary
A 9 judge Constitution Bench stated that industrial alcohol falls under the definition of “intoxicating liquor” of the State List under Entry 8, permitting states to regulate and tax it. This ruling overrules the 1990 Synthetics & Chemicals Ltd. case, which restricted the definition to potable alcohol.
Key Facts
- Case Name: State of Uttar Pradesh and ors vs. Lalta Prasad Vaish
- Judges Name: Chief Justice DY Chandrachud, Justice Hrishikesh Roy, Justice Abhay S Oka, Justice BV Nagarathna (dissenting), Justice JB Pardiwala, Justice Manoj Misra, Justice Ujjal Bhuyan, Justice Satish Chandra Sharma, Justice Augustine George Masih
- The issue is whether industrial alcohol falls under “intoxicating liquor” for state regulation under Entry 8.
Legal Insights
The Supreme Court of India ruled that “intoxicating liquor” encompasses all types of alcohol that can harm public health, enlarging the scope beyond potable alcohol. It reconciled state and central powers, stating possible overlaps but emphasizing broad interpretation.
Impact
States can now regulate and tax industrial alcohol, affecting industries and increasing state revenue, especially in the post-GST era.
Why it Matters
It strengthens powers of the state in regulating alcohol, by ensuring public health protection and clearer tax authority over industrial alcohol.
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