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        Central Excise

        1987 (10) TMI 346 - SC - Central Excise

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        State regulation of alcoholic medicinal preparations may stand when needed to prevent misuse and support prohibition The order examines whether the State may regulate the transport, possession and consumption of ayurvedic preparations containing alcohol under the U.P. ...
                        Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.

                            State regulation of alcoholic medicinal preparations may stand when needed to prevent misuse and support prohibition

                            The order examines whether the State may regulate the transport, possession and consumption of ayurvedic preparations containing alcohol under the U.P. Excise Act, 1910, and whether Article 47 requires such medicinal preparations to be excluded from prohibition laws. It accepts that where a preparation contains a substantial alcohol content and can be misused as an intoxicating drink, State regulation of possession and consumption may be sustained to support prohibition and public health. The order does not finally resolve the matter on merits and notes that it was placed before a Constitution Bench for further disposal.




                            Issues: Whether the State Government had power under the U.P. Excise Act, 1910 to regulate the transport, possession and consumption of ayurvedic preparations containing alcohol, and whether Article 47 of the Constitution required such medicinal preparations to be excluded from the operation of prohibition laws.

                            Analysis: The order considered the validity of notifications issued under the U.P. Excise Act, 1910 treating certain ayurvedic preparations as liquor for the purposes of transport, possession and sale, and framed the controversy around the scope of the State's regulatory power. It contrasted an earlier view that medicinal and toilet preparations containing alcohol could not be brought within prohibition measures merely because of possible misuse, with the view taken in the present order that Article 47 does not compel exclusion of such preparations where they contain a substantial percentage of alcohol. The order reasoned that, for the effectiveness of prohibition and the protection of public health, the State may regulate possession and consumption of such preparations to prevent their misuse as alcoholic beverages.

                            Conclusion: The order accepted that the State has power to regulate the possession and consumption of medicinal preparations containing alcohol under the excise law and did not accept the contention that Article 47 bars such regulation.

                            Final Conclusion: The matter was not finally resolved on merits in this order and was placed before a Constitution Bench for further disposal.

                            Ratio Decidendi: Where medicinal preparations contain a high alcohol content and can be misused as intoxicating drinks, the State may regulate their possession and consumption under excise law consistently with Article 47 to advance prohibition and public health.


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