State Of Punjab And Anr vs M/S. Devans Modern Brewaries And Anr

The Supreme Court addressed the applicability of Article 301 of the Constitution concerning the imposition of import duties on potable liquor by the States of Punjab and Kerala. The Court held that the States possess the authority to levy such taxes under the Punjab Excise Act, 1914, and the Abkari Act, 1077, as they regulate trade in liquor, which is considered res extra commercium. The judgments of the Punjab and Haryana High Court and Kerala High Court were analyzed, with the former being quashed for denying the State's power to impose the tax, while the latter upheld the imposition as regulatory, thus not infringing Article 301.