In State of U.P. vs. M/S. Lalta Prasad Vaish case, SC held that the term "intoxicating liquor" in Entry 8 of List II (State List) of the Seventh Schedule of the Constitution will include industrial alcohol.
- It also overruled a 1990 judgment (Synthetics & Chemicals Ltd. v. State of U.P. case) which had said that “intoxicating liquor” refers only to potable alcohol and that States cannot tax industrial alcohol.
Brief Background
- Currently, Union regulates industrial alcohol under the Industries (Development and Regulation) Act, of 1951.
- Union defended this law on the basis power it receives from Entry 52 (Union List), and Entry 33 (Concurrent List).
- Entry 52- Industries
- Entry 33 - Trade and commerce in, and the production, supply and distribution
- Union defended this law on the basis power it receives from Entry 52 (Union List), and Entry 33 (Concurrent List).
- States Argument: Industrial alcohol can be misused to produce consumable alcohol illegally, which required them to enact legislation.
About Industrial Alcohol
- It is a one of the major type of Alcohol, other one is Usable alcohol.
- Usable alcohol predominantly refers to ethyl alcohol (ethanol), intended for human consumption.
- It typically refers to isopropyl alcohol (isopropanol) or denatured alcohol (ethanol with additives).
- It is made unfit for drinking by adding substances that make it poisonous or unpleasant to taste.
