Supreme Court Upholds Federal Balance on Alcohol Control

• The Supreme Court of India has clarified the scope of Entry 8 in the State List under the Seventh Schedule in the Constitution to cover both ‘potable alcohol’ and alcohol used for industrial purposes.

• The entry includes activities involving the production, sale, and distribution of alcohol products, including rectified spirit, extra neutral alcohol, and denatured alcohol.

• The ruling has boosted the federal principle behind the distribution of powers between the Centre and the States.

• The Industries (Development and Regulation) Act (IDRA), 1951, listed ‘fermentation industries’ as a scheduled subject for the Union government to control.

• The majority ruling excludes the industry of ‘intoxicating liquor’ from the purview of the IDRA, stating that Parliament lacks legislative competence to control the entire industry. • The Supreme Court’s ruling is the second major verdict upholding federal principles, following a ruling that states can tax mineral rights and mineral-bearing lands