9911796707
TMI Blog2004 (2) TMI 744X X X X Extracts X X X X X X X X Extracts X X X X ..... involved in these two writ petitions. Therefore, the law has already been declared by this Court. The fee which is being demanded in the States of West Bengal and Uttar Pradesh is under challenge in these petitions and the validity thereof can appropriately be considered by the respective High Courts and we do not propose to entertain these petitions under Article 32 of the Constitution. For convenience, we direct Writ Petition No. 363 of 1990 to be transferred to the High Court of Allahabad and Writ Petition No. 364 of 1990 to the High Court of Calcutta where these two petitions shall be disposed of in accordance with law. 2. Heard learned Counsel for the parties. 3. The prayer in the writ petition is for a writ of certiorari to quash the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ossession of Denatured Spirit (14th Amendment) Rules, 1989 were framed. Rule 10(1) provide for export pass fee of 0.50 paise per bulk litre for the quantity of denatured spirit or special denatured spirit. 7. The Petitioner has challenged the validity of the notification dated 23.11.1989 levying export pass fee as above on the transportation of the above goods. Until the export pass fee is deposited in the Government Treasury the goods are not allowed to be transported from U.P. by the Respondent. 8. In paras 37 and 45 of the counter-affidavit of Amar Ahmad it has been admitted that the Petitioner purchases specially denatured spirit. 9. In para 50 of the counter-affidavit it is stated by the Respondent that the production, distribution, ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tate Government is competent to levy fee for the purpose of ensuring that industrial alcohol is not surreptitiously converted into potable alcohol so that the State s deprived of revenue on the sale of such potable alcohol and the public is protected from consuming such illicit liquor. But this power stops with the denaturation of the industrial alcohol. Denatured spirit has been held in Vam Organics I, to be outside the seisin of the State Legislature. Assuming that denatured spirit may by whatever process be renatured, (a proposition which is seriously disputed by the Respondent) and then converted into potable liquor this would not give the State the power to regulate it. Even according to the demarcation of the fields of legislative com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he impugned legislation, we are definitely of the opinion that these levies cannot be treated as part of regulatory measures. The State has not produced any material to show that it was incurring any additional cost for any further regulation of denatured spirit. Any trace of a lingering doubt as to the propriety of the levy under Rule 3(a) must be taken to have been noted off effectively with the order passed by three Judges of this Court in the writ petition filed by Synthetics challenging the same levy as we have noted earlier. That order has resulted in granting Synthetics and Chemicals Ltd. relief from payment under Rule 3(a). The only distinction between the present Respondent' cases and Synthetics was that the Respondent chose to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ol which is unfit for human consumption. Rectified spirit by itself is unfit for human consumption since its alcoholic level is very high. However, by the mere process of adding water into it, it can be made fit for human consumption. Rectified spirit, being unfit for human consumption, is not within the scope of legislative powers of the State Legislature. Once, however, water is put into it in sufficient quantity to make it fit for human consumption, it comes within the legislative competence of the State Legislature. However, where denaturants are added to rectified spirit it becomes denatured or specially denatured spirit and becomes unfit for human consumption as it becomes toxic. Hence denatured and specially denatured spirit are outs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the alcohol used by the Petitioner unfit for human consumption a chemical known as Croton Aldehyde is added to the alcohol. This is tested by the Alcohol Technologist, Government of U.P. These allegations are not denied in the counter-affidavit. What is alleged in para 21A of the supplementary counter-affidavit is that denatured spirit can be renatured. This contention has been dealt with by the Supreme Court in the 2nd Vam Organic case whose relevant observation has been quoted above. 20. In a recent short order of the Supreme Court in Civil Appeal No. 324 of 1981, Hindustan Sugar Mills Ltd. v. State of U.P., decided on 19.7.2001, the Supreme Court observed that the levy of export pass fee on industrial alcohol was not permissible. 21. As ..... X X X X Extracts X X X X X X X X Extracts X X X X
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