Supreme Court overturned 34 years old decision on liquor, CJI said – cannot snatch the power of the state

On October 23, a nine-judge constitutional bench of the Supreme Court abolished the Centre's authority over industrial liquor by a ratio of 8:1. The Supreme Court said that the state has the right to make laws on industrial liquor because the Center does not have regulatory power.

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In 1990, the Supreme Court had given its verdict in favor of the Center in the Synthetics and Chemicals case. The Constitutional Bench said that states cannot claim to regulate industrial liquor even under the Concurrent List.

The Supreme Court said that states also have the right to make laws regarding the production and supply of industrial alcohol, hence “the power of the state cannot be taken away”.

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CJI DY Chandrachud, Justices Hrishikesh Roy, AS Oka, JB Pardiwala, Ujjwal Bhuyan, Manoj Mishra, SC Sharma and AG Masih delivered the majority judgment that states have the right to regulate consumer liquor.

The petitioners had reached the Supreme Court after the introduction of GST.

At the same time, Justice BV Nagarathna disagreed with this decision and said that only the Center will have the legislative authority to control industrial liquor. In this case, the petitioners said that after the implementation of GST, the right to impose tax on industrial alcohol has become very important.

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