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Industrial Alcohol

Kartavya Desk Staff

Source: TH

Context: In a significant ruling, a nine-judge Constitution Bench of the Supreme Court upheld the right of State legislatures to regulate industrial alcohol as an “intoxicant” under the ambit of “intoxicating liquor” as mentioned in the State List of the Constitution’s Seventh Schedule.

• This judgment comes after multiple States challenged the Centre’s position that industrial alcohol fell under the exclusive control of the Union government, as per Entry 52 of the Union List.

About lists in news:

State List (Entry 8): Grants States the authority to regulate “intoxicating liquor” and activities like production, possession, transport, and sale. The Supreme Court extended this definition to include industrial alcohol, recognizing its potential for misuse affecting public health.

• The Supreme Court extended this definition to include industrial alcohol, recognizing its potential for misuse affecting public health.

Union List (Entry 52): Pertains to industries that require Union control in the public interest. The Centre argued that this gave it exclusive jurisdiction over industrial alcohol, but the Court ruled that the State’s authority under Entry 8 still stands.

• The Centre argued that this gave it exclusive jurisdiction over industrial alcohol, but the Court ruled that the State’s authority under Entry 8 still stands.

About industrial alcohol:

• Industrial alcohol refers to ethanol used primarily for industrial purposes, such as manufacturing, fuel production, or chemical applications.

• Unlike potable alcohol, industrial alcohol is denatured with toxic chemicals to make it unsuitable for human consumption.

• It plays a critical role in sectors like pharmaceuticals, cosmetics, and fuels.

Feature | Absolute Alcohol | Denatured Alcohol

Composition | Pure ethanol (minimal or no additives) | Ethanol with high concentration of toxic additives

Safety | Drinkable but highly dangerous in high amounts | Poisonous, unfit for consumption due to toxic additives

Additives | May contain trace impurities | Contains substances like methanol, rendering it toxic

Applications | Medical and laboratory use (sterilization, chemicals) | Industrial applications (fuel, cleaning solvents)

Smell & Taste | Characteristic alcoholic odor, slightly sweet taste | Foul odor, bitter taste due to additives

Taxation | Higher taxes due to its purity and potential for drinking | Lower or tax-exempt since it’s unsuitable for drinking

Cases and judgement:

ITC Ltd v. Agricultural Produce Market Committee (2002): The Supreme Court affirmed that states are not subordinate to the Centre, emphasizing the need to maintain a constitutional balance of powers between them.

• The Supreme Court affirmed that states are not subordinate to the Centre, emphasizing the need to maintain a constitutional balance of powers between them.

Synthetics & Chemicals Ltd v. State of Uttar Pradesh (1989): A 7-judge Bench ruled that states’ powers under Entry 8 of the State List are limited to regulating “intoxicating liquors,” leaving the regulation of industrial alcohol to the Centre.

• A 7-judge Bench ruled that states’ powers under Entry 8 of the State List are limited to regulating “intoxicating liquors,” leaving the regulation of industrial alcohol to the Centre.

Ch Tika Ramji v. State of UP (1956): The Court upheld a state law regulating the sugarcane industry, confirming that states can legislate in industries even when central laws exist, reinforcing federal principles.

• The Court upheld a state law regulating the sugarcane industry, confirming that states can legislate in industries even when central laws exist, reinforcing federal principles.

Insta links:

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