| Schedule 7 List Entry 8 in the State List: Intoxicating liquors, that is to say, the production, manufacture, possession, transport, purchase, and sale of intoxicating liquors. Entry 52 in the Union List: Industries, the control of which by the Union is declared by Parliament by law to be expedient in the public interest. |
- A nine-judge Constitution Bench ruled in an 8:1 majority that State legislatures have the right to regulate industrial alcohol.
- Scope of ‘Intoxicating Liquor’ under Entry 8: The majority held that “intoxicating liquor” in Entry 8 includes industrial alcohol, permitting States to regulate its production, manufacture, possession, transport, purchase, and sale.
- Entry 8, grounded in public interest, was interpreted to cover alcohol harmful to health including-
- Rectified spirit
- Extra neutral alcohol (ENA)
- Denatured spirit
- The term “intoxicating liquor” should be broadly interpreted to include all alcoholic substances potentially harmful to health.
- Entry 52 of the Union List provides the Centre control over industries where Parliament declares such regulation in the public interest.
- The Court clarified that Parliament cannot assume full control of the alcohol industry by invoking Entry 52, preserving State authority over industrial alcohol under Entry 8.
Dig Deeper: Read Supreme Court judgement inn favour of states on power to tax mineral rights.
