SC grants full control over alcohol operations to states In a landmark judgment The Supreme Court of India has ruled that states have complete legislative control over the production and trade of liquor, including the power to tax industrial alcohol such as denatured spirit and ENA. By Spiritz Desk 24 Oct 2024 in Alert New Update In a landmark judgment The Supreme Court of India has ruled that states have complete legislative control over the production and trade of liquor, including the power to tax industrial alcohol such as denatured spirit and ENA. The judgment, delivered by a nine-judge bench led by Chief Justice of India D.Y. Chandrachud and passed with an 8-1 majority, broadened the meaning of ‘intoxicating liquor’ under Entry 8 of the State List, restricting the scope of Entry 52 of the Union List, which pertains to control of industries in the public interest. The judgment also includes legislative control over raw materials like sugarcane molasses and grains used to produce alcohol, clarifying that these fall under the purview of the states. The Union government had argued that parliamentary control over ENA was necessary, citing its critical role in producing hand sanitizers during the Covid-19 pandemic, but the court dismissed this argument. The judgment emphasizes that legislative entries should be interpreted broadly, ensuring that both alcohol production and the raw materials used in it remain under state authority. This ruling enhances the fiscal autonomy of states and ensures they gain greater revenue from alcohol-related industries. You May Also like Read the Next Article