BIHAR DISTILLERY vs U O I

The Supreme Court ruled that the regulation of distilleries and the licensing for manufacturing rectified spirit falls under the jurisdiction of the States as per the Seventh Schedule of the Constitution, specifically Article 246. The Court held that despite the amendment of the Industries (Development and Regulation) Act, 1951, which included alcohol industries, the States retain the authority to regulate the establishment and operation of distilleries. The petitioner's claim that the Union Government exclusively controls licensing was rejected, affirming the State's role in this regulatory framework.