BIHAR DISTILLERY AND ANR. versus UNION OF INDIA AND ORS.

Citation: [1997] 1 S.C.R. 680 · Decided: 20-01-1997 · Supreme Court of India · Bench: B.P. JEEVAN REDDY, SUJATA V. MANOHAR · Disposal: Disposed off
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Judgment (excerpt)

A 
BIHAR DISTILLERY AND ANR. 
+,; 
v. 
UNION OF INDIA AND ORS. 
~ 
JANUARY 20, 1997 
B 
[B.P. JEEVAN REDDY AND SUJATA V. MANOHAR, JJ.] 
Constitution of India, 1950 : Articles 246, 254 and Schedule VII List I 
-,. 
Entry 52, 84, List II Entry 6, 8, 24, 51 and List III Entry 33. 
c 
Alcohol-Rectified spirit--lndustries engaged in production, supply and 
distlibution of-Respective spheres of control of Union and State Govern-
ments Scope of relevant legislative entries-Held: industlies engaged in the 
manufacture of rectified spirit exclusively for obtaining or manufacturing 
potable liquors shall be under total and exclusive control of State Govern-
• 
ments from the moment it was cleared/removed for that purpose from the 
• 
D distille1y - those engaged in manufacture of rectified spirit exclusively for 
_., 
supply to industries which were not engaged in obtaining or manufacturing of 
potable liquor shall be under total and exclusive control of Union-But in 
case of industries engaged in manufacture of rectified spirit for obtaining or 
manufacturing potable liquor as well as supplying it to industries, excise duty 
on rectified spirit, removed/cleared for the fonner purposes shall be levied by 
E State Government concerned, while that for the latter shall be levied by the · 
Union-How ever, the power to permit establishment and regulation of 
functioning of the distillery shall be exclusively vested in the Union-The 
power to take necessary steps to ensure against misuse or diversion of rectified 
spilit meant for industrial pwposes to potable purposes shall vest in the State 
~ 
- Industries (Regulation and Development) Act, 1951-Bihar and Orissa 
F Excise Ac~ 1915. 
Words and Phrases: 
''Alcoholic liquors for human consumption"-Meaning of--ln the con-
text of Ent1y 84 List I of the Seventh Schedule of the Constitution of India, 
G 1950. 
"Intoxicating liquors''-Meaning of-In the context of Entry 8 List II of 
)... 
the Seventh Schedule to the Constitution of India, 1950. 
.. -
The petitioner was a distillery licensed to manufacture industrial 
H alcohol and was getting its licence renewed under the provisions of the 
680 
BIHAR DISTILLERYv. U.O.I. 
681 
> ;... 
Bihar and Orissa Excise Act, 1915. The authorities of the State proposed A 
to cancel the petitioner's license for certain reasons assigned by them. The 
petitioner objected to it on the ground that the grant and cancellation of 
licence in respect of a distillery manufacturing rectified spirit was within 
the exclusive province of the Central Government and that the State 
Government had no say in the matter. With this contention the petitioner B 
. filed the present writ petition before this Court saying that it was licensed 
to manufacture and manufactured only 'industrial alcohol' and no other 
alcohol or liquors. 
Disposing of the petition, this Court 
c 
HELD : 1.1. Entry 51 in List II and Entry 84 in List I of the Seventh 
Schedule to the Constitution of India, 1950 compliment each other. The 
relevant expression is "alcoholic liquors for human consumption" which is 
included in Entry 84 in List I. The words employed denote that there may 
be alcoholic liquors meant for human consumption as well as for other D 
., 
..> 
purposes. Entry 8 in List II employs the expression "intoxicating liquors" 
which express.ion is, of course, not. qualified by words "for human con-
sumption". Entry 8, it is necessary to emphasize, places all aspects of 
intoxicating liquors within the State's sphere; production, manufacture, 
possession, transport, purchase and sale of intoxicating liquors is placed 
E 
within the exclusive domain of the States. Entry 6, which inter alia speaks 
of "public health", is relevant only for the reason that it furnishes a ground 
for prohibiting consumption of intoxicating liquors. Regarding Entry 33 
in List III, the language of clause (a) thereof is significant. Even though 
-i 
~· 
control of certain industries may have been taken over by the Union by 
virtue of a declaration made by Parliament in terms of Entry 52 in List I, F 
yet the "trade, commerce in, and the production, supply and distribution 
of the products" of such industry is placed in the concurrent field, which 
in the present context means that though the control of alcohol industry 
is taken over by the Union, trade, commerce in and the production, supply 
and distribution of the products of alcohol industry can be regulated both 
G 
by the Union and the States subject,
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