Supreme Court holds 'industrial alcohol' is 'intoxicating liquor', can be regulated by States

The Supreme Court ruled that ‘industrial alcohol’ falls under the definition of ‘intoxicating liquor’ and can be taxed by states. This decision, delivered by a nine-judge bench, overturns a 1990 judgment that restricted states from taxing industrial alcohol. The court emphasized that the term ‘intoxicating liquor’ includes all types of alcohol that can affect public health, not just potable alcohol. The ruling allows states to regulate and tax industrial alcohol under Entry 8 of the State List, while acknowledging potential overlaps with the Union List. The court’s decision aims to reconcile these overlaps without rendering any legislative entries redundant. This judgment underscores the broad interpretation of legislative lists and the importance of state powers in regulating substances that impact public health1.