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Report No. 158

2.2.3. Import of Synthetics case decision (supra) again considered by the Supreme Court.-

The question of states' power in the matter of regulating the manufacture, possession, sale and transport and its power to impose prohibition came up directly for consideration before a three Judge Bench of the Supreme Court in State of Andhra Pradesh v. McDowell & Co., (1996) 3 SCC 709. The said judgment sought to explain the decision of the Constitution Bench in Synthetics. It was explained that Entry 52 over-rides Entry 24 alone and does not over-ride any other Entry in List II.

Reliance was also placed on Entry 33 in List III which empowers both the Union and the States to make a law concerning "trade and commerce in, and the production, supply and distribution of the products 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". It was held that in so far as industries engaged in manufacture of intoxicating liquors are concerned, the States have the exclusive power to legislate. The other part of this decision has already been set out in the preceding paragraph while setting out the grounds of the judgment in Vam Organics.

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