Current Affair 1:

News:

A nine-judge Constitution Bench of the Supreme Court on Wednesday (October 23), held by 8:1 majority, held that the States have the power to regulate 'denatured spirit or industrial alcohol'.

First check what is Entry 8 of List II (State list) and Entry 52 in the Union List?

Entry 8 of List II of the Constitution of India's Seventh Schedule is about the production, manufacture, possession, transport, purchase, and sale of intoxicating liquors:

“Intoxicating liquors, including the production, manufacture, possession, transport, purchase, and sale of such liquors”.

Entry 52 of the Union List in the Seventh Schedule of the Constitution of India is about the industries that are under the control of the Union:

“Industries that the Union controls, as declared by Parliament to be in the public interest”

What was the primary questions referred to in the nine-judge bench?

The primary questions referred to in the nine-judge bench included whether Entry 52 in the Union List overrode Entry 8 of the State List and if the expression ‘intoxicating liquors’ in Entry 8 of List II included alcohol other than potable alcohol.

The crux of the case was the tussle between the Union and States over power to levy tax, manufacture and produce alcohol. The Centre had claimed that industrial alcohol was an ‘industry’ controlled by the Union government in public interest under a parliamentary law, Industries (Development and Regulation) Act of 1951. Such an industry was covered by Entry 52 of the Union List in the Seventh Schedule of the Constitution.

The Supreme Court held that Entry 8 was both an industry-based as well as a product-based entry in the State List. It covered the regulation of everything from the raw materials to the consumption of ‘intoxicating liquor’. “The Parliament cannot occupy the field of the entire industry merely by issuing a declaration under Entry 52 of List I.

The majority held that the term "intoxicating liquor" cannot be interpreted narrowly to include only alcohol which is fit for human consumption. It was held that liquids which contain alcohol which can be used or misused for human consumption can be included within the term "intoxicating liquor".

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