Supreme Court nine judge bench led by CJI DY Chandrachud will hear the dispute regarding the license fee imposed in 1999. A distributor challenged the 1999 license fee under the U.P. Excise Act, 2010, arguing state overreach in regulating “denatured spirits,” a domain reserved for the Union under the 1951 Industries Act. The Allahabad High Court ruled in favour in 2004, but the Supreme Court noted irregularities in a 1990 judgment, leading to conflicting views among benches. The issue reached a stalemate until December 2010 when the Supreme Court referred it to a nine-judge bench for resolution.
The petitioner contended that despite Section 18-G of the Industries Act, Entry 33 of List III suggested shared jurisdiction. The court grappled with establishing legislative competence, given the conflicting interpretations of previous judgments. The ongoing discord highlighted the need for clarity in delineating the Union and state governments’ powers, particularly regarding oil distribution regulation.
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