GUJCHEM DISTILLERS INDIA LTD. vs STATE OF GUJARAT AND ANR.

The Supreme Court upheld the validity of Section 58(A) of the Bombay Prohibition Act, affirming that states possess the authority to regulate alcohol use, including preventing industrial alcohol from being misused as intoxicating alcohol. The Court clarified that Section 58(A) imposes a statutory duty of supervision on manufacturers, ensuring that industrial alcohol is not diverted for potable use. The appeal was dismissed, confirming that there was sufficient quid pro quo between the impost and services rendered to the manufacturers.