SH. BILESHWAR KHAND UDYOG KHEDUTSAHAKARI MANDALI LTD vs STATE OF GUJARAT AND ANR.

The Supreme Court upheld the constitutional validity of Section 58A of the Bombay Prohibition Act, affirming that the State has the legislative competence to regulate industrial alcohol under Entry 33 of List III of the Seventh Schedule. The Court clarified that while the Central Government has the power to levy tax on industrial alcohol, the State can enact regulations to prevent misuse of non-potable alcohol. The appeal was dismissed, confirming that the conditions for licensing under Rule 2 of the Bombay Prohibition (Manufacture of Spirit) (Gujarat) Rules, 1963, including the cost of supervision, are valid and enforceable.