Today, On 23rd October, the Supreme Court ruled that state governments can tax and regulate industrial alcohol, with Justice BV Nagarathna dissenting. She argued that such authority undermines uniform development and emphasized that only the Union government can legislate on this issue. The majority found industrial alcohol included under “intoxicating liquor.”
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Today,18th April,The Supreme Court postponed its ruling on industrial alcohol regulation, causing uncertainty in the industry. The decision revolves around the overlapping powers of the Centre and states. The nine-judge bench is reviewing the matter, which stems from conflicting interpretations of legislative competence. The final judgment’s implications for the industry remain pending.
On 4th April: Attorney General R. Venketaramani stressed the precedence of Union List’s Entry 52 over State List’s Entry 24 in regulating industrial alcohol for national welfare. The 9-judge bench continued hearing arguments on state regulation of industrial alcohol. Key points included state governments’ authority and the interpretation of “intoxicating liquor” under the Constitution’s provisions, with the next hearing set for April 9, 2024.
