{"id":210289,"date":"2008-02-13T00:00:00","date_gmt":"2008-02-12T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/ms-amrut-distillerites-ltd-vs-swami-nandagopalan-ors-on-13-february-2008"},"modified":"2017-05-06T14:29:44","modified_gmt":"2017-05-06T08:59:44","slug":"ms-amrut-distillerites-ltd-vs-swami-nandagopalan-ors-on-13-february-2008","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/ms-amrut-distillerites-ltd-vs-swami-nandagopalan-ors-on-13-february-2008","title":{"rendered":"M\/S Amrut Distillerites Ltd vs Swami Nandagopalan &amp; Ors on 13 February, 2008"},"content":{"rendered":"<div class=\"docsource_main\">Supreme Court of India<\/div>\n<div class=\"doc_title\">M\/S Amrut Distillerites Ltd vs Swami Nandagopalan &amp; Ors on 13 February, 2008<\/div>\n<div class=\"doc_bench\">Bench: H.K. Sema, Makandey Katju<\/div>\n<pre>           CASE NO.:\nAppeal (civil)  8105-8107 of 2001\n\nPETITIONER:\nM\/S AMRUT DISTILLERITES LTD\n\nRESPONDENT:\nSWAMI NANDAGOPALAN &amp; ORS\n\nDATE OF JUDGMENT: 13\/02\/2008\n\nBENCH:\nH.K. SEMA &amp; MAKANDEY KATJU\n\nJUDGMENT:\n<\/pre>\n<p>JUDGMENT<\/p>\n<p>O R D E R<br \/>\nCIVIL APPEAL NOS. 8105-8107 OF 2001<br \/>\nWITH<br \/>\nCIVIL APPEAL NOS. 8110-8111 OF 2001 &amp; 2185 OF 2002<\/p>\n<p>\tWe have heard the parties at length.\n<\/p>\n<p>\tThe questions involved for determination in this batch of appeals are (1) as to<br \/>\nwhether the manufacture of potable  alcohol is vested in the State Government or the<br \/>\nUnion Government;  and if so, (2) whether a license is required under Section 11 of the<br \/>\nIndustries (Development and Regulation) Act, 1951, for manufacture of potable alcohol.<br \/>\n\tThe Division Bench of the High Court followed the judgment rendered by a<br \/>\nConstitution Bench of this Court in Synthetic &amp; Chemicals Ltd. &amp; Others Vs. State of<br \/>\nU.P. &amp; Others (1990 1 SCC 109) and held that for the manufacture of potable alcohol an<br \/>\nadditional license under Section 11 of the Act would also be required.  While saying so,<br \/>\nthe Division Bench of the High Court relied on a sentence  that has crept in to paragraph<br \/>\n85  of  the   aforesaid   decision   of  this   Court   through <\/p>\n<p>inadvertence or clerical error in the judgment. The sentence read as &#8220;Thereafter, licences<br \/>\nto manufacture both potable and non-potable alcohol is vested in the Central<br \/>\nGovernment&#8221;.  Obviously the aforesaid sentence crept in paragraph 85 of the judgment<br \/>\nthrough inadvertence or clerical error.  We say so because under the Constitutional<br \/>\nscheme regulation of manufacture and sale etc. of potable alcohol is vested with the State<br \/>\nGovernment, whereas the regulation of manufacture and sale etc. of Industrial alcohol is<br \/>\nvested with the Union of India.\n<\/p>\n<p>\tThe aforesaid sentence in paragraph 85 of the Constitution Bench in Synthetic&#8217;s<br \/>\ncase (supra) has been noticed by the Division Bench of this Court in para 11 of Bihar<br \/>\nDistillery and Another Vs. Union of India &amp; Others [1997 (2) SCC 727].  After noticing<br \/>\nthe sentence appearing in paragraph 85 of the Constitution Bench judgment, this Court<br \/>\nclarified in paragraph 12 of the Bihar Distillery&#8217;s judgment (supra) as under:<br \/>\n\t&#8220;It is obvious that the words &#8220;both potable and&#8221; occur here as a result of some<br \/>\naccidental or typographical error.  The entire preceding discussion in the judgment<br \/>\nrepeatedly affirms that so far as potable alcohols are concerned, they are governed<br \/>\nby Entry 8 and are within the exclusive domain of the States.  The aforesaid words<br \/>\ncannot fit in with the said repeatedly affirmed reasoning.  We are, therefore, of the<br \/>\nopinion that the said passage cannot be understood as holding that even in respect<br \/>\nof the industries engaged in the manufacture or production of potable liquors, the<br \/>\ncontrol is vested in the union by virtue of Item 26 of the First Schedule to the IDR<br \/>\nAct.  In view of the express language of Entry 8  as has been clearly explained in<br \/>\nMcDowell  so far as potable liquors are concerned, their manufacture, production,<br \/>\npossession, transport, purchase and sale is within the exclusive domain of the States<br \/>\nand the Union of India has no say in the matter.  For a similar clarification with<br \/>\nrespect to the power of the State to levy sales tax on industrial alcohol, reference<br \/>\nmay be had to State of U.P. Vs. Synthetics and Chemicals Ltd.&#8217;<br \/>\n\tIn  our  view,  the  aforesaid   sentence  crept  in in<br \/>\nparagraph 85 of the Constitution Bench judgment in Syntehetic&#8217;s case (supra) was clearly<br \/>\ndue to a clerical error which has been rightly clarified by the subsequent judgment in<br \/>\nBihar Distillery&#8217;s case (supra).\n<\/p>\n<p>\tWe also noticed the High Court&#8217;s reference to Article 47 of the Constitution which<br \/>\nis a Directive Principle of State Policy and hence not enforceable.<br \/>\n\tIn that view of the matter, the Division Bench of the High Court fell in error in<br \/>\nfollowing the sentence which crept in inadvertently in paragraph 85 of the Synthetic&#8217;s case<br \/>\n(supra) judgment.\n<\/p>\n<p>\tIn the result, the appeals are allowed.  The judgment of the Division Bench of the<br \/>\nHigh Court is set aside.  The matter is remitted to the High Court to consider the matter<br \/>\nafresh in terms of the judgment rendered by this Court in Bihar Distillery&#8217;s case.<br \/>\n\tThe High Court may consider making Union of India as party respondent.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Supreme Court of India M\/S Amrut Distillerites Ltd vs Swami Nandagopalan &amp; Ors on 13 February, 2008 Bench: H.K. Sema, Makandey Katju CASE NO.: Appeal (civil) 8105-8107 of 2001 PETITIONER: M\/S AMRUT DISTILLERITES LTD RESPONDENT: SWAMI NANDAGOPALAN &amp; ORS DATE OF JUDGMENT: 13\/02\/2008 BENCH: H.K. SEMA &amp; MAKANDEY KATJU JUDGMENT: JUDGMENT O R D E [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[30],"tags":[],"class_list":["post-210289","post","type-post","status-publish","format-standard","hentry","category-supreme-court-of-india"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>M\/S Amrut Distillerites Ltd vs Swami Nandagopalan &amp; Ors on 13 February, 2008 - Free Judgements of Supreme Court &amp; High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/ms-amrut-distillerites-ltd-vs-swami-nandagopalan-ors-on-13-february-2008\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"M\/S Amrut Distillerites Ltd vs Swami Nandagopalan &amp; 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