SOUTHERN SYNTHETICS LTD Vs. STATE OF TAMIL NADU

JUDGEMENT

(1.) The writ petition and the writ appeal arising from an order passed in an interlocutory petition (W.M.P. 5832 of 1979) in the writ petition before us, have been Posted before a Full Bench or, account of certain conflicting decisions on the question whether methyl alcohol is an intoxicating liquor coming within the scope of Entry 8 of List II of the Seventh Schedule to the Constitution of India, and whether a State Legislature has competence to legislate with reference to the possession, transport and storage of methvl alcohol and the issue of licences and imposition of licence fees. In the writ, petition the Constitutional validity of the Madras Denatured Spirit, Methyl Alcohol and Varnish (French Polish) Rules, 1959 (hereinafter referred to as the Madras Spirit Rules) is questioned in so far as the Rules provide for the levy and collection of licence fee and/or gallonage fee. The writ appeal is directed against the order of V. Raynaswami J. dismissing the petition, W.M.P. 5832 of 1979 for impleading respondents 2 to 4 as Parties to the petition on the ground of judicial expediency.

(2.) In the writ Petition, the Union of India has been impleaded as the second respondent pursuant to an application filed by the petitioner.

(3.) The petitioner company has been granted an industrial licence for establishing an industrial undertaking at Ranipet for manufacture of 6000 tonnes of formaldehyde arid other organic chemicals. Methyl alcohol or methanol is the main raw material required for the manufacture of formaldehyde. The Petitioner's factory would require annually 3000 metric tons equivalent to 37.50 lakhs litres by volume of methyl alcohol for the production of 6000 tonnes of formaldehyde. The Government of Tamil Nadu, in exercise of the powers conferred to, it by the provisions of the Madras Prohibition Act (Madras Act X of 1937), have framed the Madras Spirit Rules, 1959 and the Rules have been brought into force from 1-4-1959, In the said rules methyl alcohol is defined in Rule 2 (e) as under: