STATE OF U.P. vs SYNTHETICS AND CHEMICALS

The Supreme Court dismissed the Special Leave Petition, affirming the High Court's recognition of the State Government's authority to regulate the manufacture of industrial alcohol and prevent its diversion for human consumption. The Court reiterated that the licensing power for industrial alcohol lies solely with the Union of India, while the State retains legislative power over potable liquor under Entry 6 of List II. The Court held that the High Court's direction does not compel the Government to act contrary to the Molasses Control Order or any relevant laws governing molasses supply.