•Federal Principle: SC ruling reinforces distribution of powers between the Centre and the States, preserving state authority over alcohol regulation.
•Constitutional Context: The dispute centers on two overlapping entries in the Seventh Schedule of the Constitution.
•Entry 8 (State List): Grants states authority to regulate production, manufacture, possession, transport, purchase & sale of intoxicating liquor
•Entry 52 (Union List): Allows the Centre to regulate industries, including fermentation industries, to a certain extent.
•Centre’s Argument: The Central government claimed it “occupied the field” regarding industrial alcohol.
•States‘ Argument: States contended that industrial alcohol poses a risk of being misused to produce illegal consumable alcohol, necessitating their legislative power to regulate the matter.
•Previous Verdict: This is the second major ruling upholding federal principles, following a July decision allowing States to tax mineral rights.