SITARAM Vs. STATE OF RAJASTHAN

JUDGEMENT

(1.) The appeals arise from Writ Petition No. 1808 of 1988 and batch dated 18-8-89 of the Division Bench of the Rajasthan High Court following its earlier judgment dated May 17, 1989 in Writ Petition No. 1340 of 1986 and batch. In the High Court, S. 17A and class Molasses added to S.41 (2) (d) of the Rajasthan Excise. Act, 1950 as amended by the Rajasthan Excise Amendment Act 8, 1985 were impugned. The Division Bench after exhaustive consideration of all the controversies declared that the Amendment Act 8 of 1985 was enacted by the State Legislature under Entry 33 (a) of List III (concurrent list) of the 7th Schedule of the Constitution of India. Therefore, the State Legislature was competent to enact the said Amendment Act except the Condition No. 3(1) (II) and 3(2) of the licenses in Form M-1 as repugnant to the provisions of clauses (3), (4) and (7) of the Molasses Control Order. The State did nor prefer any appeal as regards the declaration of the said aforesaid provision to be ultra vires of the State Legislature. But being dissatisfied with the judgment of the Division Bench the appellants had sought leave and this court granted leave under Article. 136 of the Constitution.

(2.) It was contended by Mr. Makwana, learned counsel for the appellant that exercising the power under Entry 52 of List I (Union List), the Industrial Development Regulation Act, 1951 was enacted by the Parliament, Item 25 of the Schedule relates to the sugar industry. Molasses is a by product of the mother liquor of sugar. It is also controlled by the Molasses Control Order, 1961 made by the Central Government exercising the power under S. 18G of the Industries (Development and Regulation) Act, 1951 and that therefore the State Legislature is devoid of competency to enact the Amendment Act. We find no force in the contention. Entry 52 of list I (Union List) of the 7th Schedule to the Constitution envisages to enact law relating to industries the control of which by the Union is declared by Parliament by law to be expedient in the public interest. Undoubtedly, Act 65 of 1951 was enacted in exercise of this power and S. 18G gives power to the Central Government to regulate the items of industries enumerated in the Act 65 of 1951. However, Entry 24 and Entry 8 of the State List of the 7th Schedule gives power to the State Legislature to make law relating to intoxicating liquors, that is to say, the production, the manufacture, possession, transport, purchase and sale of intoxicating liquors. Entry 24 is the reserve power of the State Legislature subject to Entry 7 and Entry 52 of List I to enact the law relating to the industries. Entry 33 of the concurrent list gives power to the Parliament as well as the State Legislature to enact law regulating trade and commerce in and the production, supply and distribution. of (a) the production of any industry where the control of such industry by the Union is declared by Parliament by law to be expedient in the public interest and imported goods of the same kind as such products. Therefore, the Parliament as well as the State Legislature have been given the power to enact a law regulating trade and commerce in and the production, supply and distribution of "the products of any industry" obviously dealt with under Entry 52 of Union List. Section 17 A of the Amendment Act defines Molasses, thus:

(3.) Section 4 of the Amendment Act provides that in clause (d) of sub-sec. (2) of S. 41 of the Principal Act after the expression "excisable article" the expression "or Molass es" shall be added. Section 17 of the Rajasthan Excise Act deals with establishment and licensing of distilleries and warehouses subject to certain restrictions contained therein. As seen S. 17A merely defines the Molasses without any further consequences. Section 41 gives power to the State Government to make rules for the purpose of carrying out the provisions of the Rajasthan Excise Act or other law for the time being in force relating to excise revenue (b) liquidating the import, export, transport or possession of any excisable article. By virtue of S.4 of the Amendment Act " or Molasses" has also been added to clause (d) of sub-sec. (2) of S.41.