AIR 1997 SUPREME COURT 1208 ::1997 AIR SCW 1240 ::(1998) 44 KantLJ(Trib) 18 ::1997 (2) SCC 727 ::(1997) 2 RecCivR 136 ::(1997) 1 Scale 573 ::1997 (2) All WC 879 ::(1997) 2 Pat LJR 92 ::(1997) 1 SCR 680 (SC) ::1997 (1) SCR 680 ::(1997) 3 Supreme 711 ::(1997) 2 JT 20 (SC)

Supreme Court Of India

Hon'ble Judge(s): B. P. Jeevan Reddy, Sujata Manohar , JJ

Constitution of India , Sch.VII List I Entry 7, Sch.VII List I Entry 52, Sch.VII List II Entry 8, Sch.VII List II Entry 24, Sch.VII List III Entry 33— Rectified spirit - Demarcation of control over it, between Union of India and States, stated. So far as demarcation of control between States and Union of India in all respects such as setting up of distillery, manufacture, transport, distribution etc. over rectified spirit is concerned, following position emerges :- (1) So far as industries engaged in manufacturing rectified spirit meant exclusively for supply to industries (industries other than those engaged in obtaining or manufacture of potable liquors), whether after denaturing it or without denaturing it, are concerned, they shall be under the total and exclusive control of the Union and be governed by the Industrial (Development Regulation) Act and the rules and regulations made thereunder. In other words, where the entire rectified spirit is supplied for such industrial purpose, or to the extent it is so supplied, as the case may be, the levy of excise duties and all other control including establishment of distillery shall be that of the Union. The power of the States in the case of such an industry is only to see and ensure that rectified spirit, whether in the course of its manufacture or after its manufacture, it (is?) not diverted ....