In a pivotal legal discourse unfolding at the Supreme Court, a critical debate surrounds the jurisdictional control over industrial alcohol versus beverages. Under the guidance of Chief Justice Chandrachud, a nine-judge bench is currently deliberating whether the authority to regulate industrial alcohol should be vested in state governments, as contended by the Uttar Pradesh government and others, or if it falls within the purview of the central government.
During the recent hearing, senior advocate Dinesh Dwivedi, representing the Uttar Pradesh government, underscored the longstanding tradition of state governments being responsible for regulating alcohol, including industrial alcohol. He emphasized that historically, excise duties and regulations pertaining to alcohol and spirits have been managed at the state level, with no direct intervention from the central government in regulating industrial alcohol.
The crux of the matter stems from Section 18G of the Industries (Development and Regulation) Act of 1951, which empowers the central government to oversee the proper distribution and pricing of certain industrial products. The Supreme Court is tasked with determining whether the regulation of industrial alcohol falls under the jurisdiction of state governments and, subsequently, whether states possess the legal authority to regulate it. Additionally, the bench will assess whether the central government has enacted any legislation under Section 18G of the 1951 Act to specifically regulate industrial alcohol.
At the heart of the dispute lies the fact that both industrial alcohol and beverages originate from rectified spirit. While industrial alcohol undergoes denaturation, rendering it unsuitable for consumption, beverages are intended for human consumption. This longstanding issue has been pending in the Supreme Court for several decades. In 1997, a seven-judge bench ruled in favor of the central government’s authority to regulate industrial alcohol. Subsequently, the matter was referred to a nine-judge bench in 2010, leading to the ongoing proceedings.
