LexSYNTHETICS & CHEMICALS LTD. ETC. versus STATE OF U.P. AND ORS.
Open in Lexace · Ask the AI about this caseJudgment (excerpt)
SYNTHETICS & CHEMICALS LTD. ETC.
A
v.
STATE OF U.P. AND ORS.
OCTOBER 25, 1989
[E.S. VENKATARAMIAH, CJ., SABYASACHI MUKHARJI,
B
RANGANATH MISRA, G.L. OZA, B.C. RAY, K.N. SINGH
AND S. NATARAJAN, JJ.]
CONSTITUTION OF INDIA, l<J50: Articles I9{1)(g), 2I, 32,
47, 245, 246, 265, 277, Seventh Schedule, List I Entries], 52, 5Y, /54 96;
97, List II Entries 8, 24, 26, 27, 51, 52, 56 and List III Entries 19 and C
13-Vend Fees and imposts levied under various State Acts-Constitu-
tional validity of.
Preamble-Sovereignty-Conception and meaning of.
Articles 19( l)(g) and 265-Arbitrary and excessive imposts by D
State-Whether a great disincentive for development of industries
rendering units unviable and sick.
Articles 19( l)(g), 21, 47 and 265-Right to trade in goods obno-
xious and injurious to health and dangerous to life-Whether State can
claim privilege of-Whether violates fundamental rights.
E
Article 141-Precedent-When can be deviated.
Article 245, 246 and 265 and Part JV-Levy/fee in furtherance of
directive principles-Whether empowers imposition, if otherwise ultra
vires Constitution or laws.
F
Article 265-Fee-Whether iustified if imposed for regulation of
any activity-Where the revenue earned is substanual.
Article 277-Pre-Constitutional levy-Saving proviswn for-·
Whether ceases to be effective on amendment or addition to the levy G
after commencement of Constitution-Doctrine of privilege-Whether
...
vests in any of the functionaries of State-Whether State can claim·
privilege for trading in goods obnoxious and injurious to health-
Whether violative of Articles 21 and 47.
Police Power of State: Whether recognised as independent power-
H
623
A
B
0
624
SUPREME COURT REPORTS
(1989] Supp. 1 S:C.R.
Whether same as sovereign power-Whether tax or levy justified on the
theory ofpolice power alone.
Andhra Pradesh Excise Act, 1968/Andhra Pradesh Distillery Rules,
1970/Bombay Prohibition Act, 1949: Section 49/Bombay Rectified
. Spirit (Transport in Bond) Rules 1951/Tamil Nadu Prohibition Act, 19J7:
Levy of vend fee or duty in respect of industrial alcohol-Legality of.
U.P. Excise Act. 1910/U.P. Excise Rules, 1972: Sections 24A,
24$ and 40/Rule 17(2)-Right of State to levy vend fee or duties in
respect of industrial alcohol-Legality of.
industries (Development and Regulation) Act, 1951: Sections 2
and 18G-Powers of State to legislate in respect of alcohol.
Statutory Interpretation: Constitution-Entries in legislative lists
-Exclusionary clause-To be strictly and narrowly construed-Rulf of
harmonious construction of-Reiterated.
D
Words and Phrases: 'Human consumption':.__'lntoxicating liquor'
-'Rectified spirit' -Meaning of
Writ Petitions/Civil appeals challenging the notification dated
31st May, 1979 which substituted a new rule 17(2) of U.P. Excise Rules
and provided for a vend fee, the amendment to section 49 of the Bombay
E
Prohibition Act, 1949 treating exclusive privilege for State in liquor
trade and imposing a transport fee, the Bombay Prohibition Act, 1949 as
amended from time to time along with ordinance No. 15of1981 amend-
ing the Bombay Prohibition Act, 1949 and Section 49 added by reason
of which the State was granted exclusive privilege of importing, export-
ing, transporting, manufacturing, bottling, selling, buying, processing
F . or using any intoxicant; and seeking a declaration that alcohol plant of
the petitioner-company was not covered by the A.P. Excise Act, 1968,
\A.P. DistiIIery Rules, 1970, and A.P. Rectified Spirit Rules, 1971 and that
alcohol plant of the company was not a 'distillery' within the meaning of
the said expression under the A.P. Distillery Rules and, therefore, the
Distillery Rules had no application thereto and seeking an order to
G
restrain.from interfering with and/or regulating and controlling pro-
duction, distribution, movement and supply of alcohol from the plant·of
the company and the Tamil Nadn Prohibition Act, were filed in this
Court.
H
Review Petitions against the judgment and order of this Court
dated 19th December, 1979 in State of U. P. etc. v. Synthetics. and
Chemicals Ltd. and Ors. etc., (1980] 2 SCR 531 re-agitating challenge
SYNIHETICS-CHEMICALS v. STA"l'E OF U:P:
6"25·
to sections 24A and 248 of the U.P. Excise Act, 1910 as amended in 1972 A
and 1976, declaring exclusive privilege of the Government for
, manufacture and -sale of foreii:n liquor as defined, which included
denatured spirit and iExcerpt shown. Read the full judgment & AI analysis in Lexace.