Asserting its right to regulate industrial alcohol, the Centre told the Supreme Court on April 4 that legislative power to levy excise duty on alcohol not fit for human consumption but meant for industrial use lies exclusively with Parliament.
Arguing before a nine-judge constitution Bench headed by Chief Justice D Y Chandrachud, Attorney General R Venkataramani submitted that a "conscious decision" was taken to treat alcoholic liquors fit for human consumption and alcoholic liquors not fit for human consumption separately, with the former falling within the domain of provincial legislatures and the latter within the ambit of the federal legislature.
"It is submitted that the legislative power in relation to levy excise duty upon non-potable liquor is exclusively with the Parliament, and upon potable liquor is exclusively with the Legislatures of the States," Mr. Venkataramani told the Bench, also comprising Justices Hrishikesh Roy, Abhay S Oka, B V Nagarathna, J B Pardiwala, Manoj Misra, Ujjal Bhuyan, Satish Chandra Sharma and Augustine George Masih.