States have right to tax industrial alcohol, rules SC

OPENING a major revenue source for state governments, the Supreme Court on Wednesday ruled that the regulatory power over the production, manufacture, and supply of industrial alcohol lies with states and not the Centre.

- Suchitra Kalyan Mohanty

In a 8:1 majority ruling, a nine-judge Constitution bench led by Chief Justice D Y Chandrachud held that industrial alcohol comes within the definition of 'intoxicating alcohol' under Entry 8 of the State List, so the state governments can regulate and tax it.