STATE OF PUNJAB vs M/S DEVANS MODERN BREWARIES LTD.

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 imposition of such duties does not violate Article 301, as the States possess the exclusive privilege to regulate the trade of liquor. The Punjab and Haryana High Court's ruling that the State lacked the power to impose such a tax was overturned, affirming the validity of the import duty under the Punjab Excise Act, 1914, and the Abkari Act, 1077, respectively.