The B

PUBLI

(NO.PATNA 245) PA

Prohibi

No. 12/muk-50/17-662

Vaishali (Grain based Distiller

license for manufacturing ind

applicant has applied for the re

03.05.2017 by the Hon’ble Hig

CWJC No.1713 of 2017 and o

Supreme Court of India in the m

Distillers and Bottlers Pvt. Ltd a

2. The Hon’ble High C

CWJC No.1713 of 2017 and oth

“Once from the materials avail

that ENA, an industrial alcoho

under Entry 52 of Schedule I,

manufacturer. The only power

the Constitution Bench in the ca

lay down regulations to ensure

misused as a substitute for pota

is not permissible in law, and in

this Court cannot permit the St

or a product, which is within

permissible and to that extent, r

3. The Hon’ble High C

the aforesaid findings, the act

REGISTERED

Bihar Gazett

XTRA ORDINARY

SHED BY AUTHORITY

25 PHALGUN 1939(S)

ATNA, FRIDAY, 16TH MARCH 2

ition, Excise & Registration Department

————

ORDER

The 26^th February 2018

2—The Globus Spirits ltd.,Dhandua, Jandaha, H

y, manufacturer of industrial alcohol) has applied

dustrial alcohol (ENA) from Grain for the year

enewal of the said license in the light of the judgm

gh Court of Patna in the matter of SCI India Ltd Vs

others and in the light of the interim order passed b

matter of SLP (CIVIL)-16828-16831/2017; State of B

and Others.

Court of Patna in the matter of SCI India Ltd Vs S

hers observed in the para 68 of the judgment dated 0

lable on record and a complete reading of the IDR

ol, not fit for human consumption, is a material or

I, the State Government is denuded of its power

available to the State Government as detailed and

ase of Synthetics and Chemicals Ltd. (supra) is that

that non-potable alcohol, like industrial alcohol is n

able alcohol. The State cannot be permitted to do som

n the garb of regulating in furtherance to the policy

tate to enact a law totally prohibiting the manufactu

n the exclusive domain of the Central Governmen

relief has to be granted to the petitioners.”

Court of Patna further observed in para 71 that “In th

t of the State Government in issuing the Notificati

NO. PT.-40

tetetete

2018

Hajipur, Dist-

for renewal of

2017-18. The

ment passed on

State of Bihar;

by the Hon’ble

Bihar Vs Bihar

State of Bihar;

03.05.2017 that

Act, it is clear

r item covered

to prohibit its

d laid down by

t the State may

not diverted or

mething, which

of prohibition,

urer of an item

nt. This is not

he backdrop of

ion dated 24th

BIHAR GAZETTE (EXTRA) 16TH MARCH 2018

January, 2017 and the provisions contained therein with regard to denying renewal of license so

far as the production of ENA from grain based industries are concerned, to that extent and

limited to the denial of license or its renewal to production of ENA has to be quashed and is,

accordingly, quashed. Remaining part of the Notification which does not affect the right of the

petitioners to carry on production and manufacturing of ENA need not be struck down by

this Court.”

4. In para 72 of the aforesaid judgment the Hon’ble High Court of Patna has observed

that “The impugned legislation was thereafter being tried to be supported or legitimized by

pointing out that it has been implemented in furtherance to the food grains policy of the Union, to

prevent misuse of the ENA, which is potential of being converted into potable liquor. It is, in fact,

a preventive measure in furtherance to the prohibition policy as if this is not done, the entire

prohibition policy of the State may be adversely affected. These submissions may give justifiable

reasonableness for the act of the State or may be good enough for substantially holding that the

State has acted in a reasonable manner, but even for doing so, the State has to function within the

four corners of the Constitutional powers available to it in the matter of legislative competence

and once we have held on due analysis of various factors that the State of Bihar lacks legislative

competence to do so, we cannot uphold the action on the principles of upholding certain policies

of the Union or steps taken in furtherance to bringing into effect the prohibition policy in the

State of Bihar in its letter and spirit and to prevent misuse of any product, which may adversely

affect the prohibition policy. If the State feels that they have to prevent misuse of the product from

being converted to a potable alcohol and thereby adversely affecting the prohibition policy in the

State, the State under the law and the Constitution can use preventive and deterrent methods, but

in the garb of prevention, a complete stoppage of the industry is not permissible.”

5. Against the judgment dated 03.05.2017 passed by Hon’ble High Court of Patna in the

matter of CWJC 1713 of 2017, the State Government has preferred SLP( C ) 16828-16831/2017

before the Supreme Court of India wherein the Hon’ble Supreme Court has passed the following

interim order on 14.07.2017 :

“In the meantime, as undertaken by the learned Counsel for the Respondents, they shall

neither manufacture the potable alcohol, nor convert the industrial alcohol to potable alcohol.

Additionally, they will not submit any application for renewal of potable alcohol,that does not

debar them to apply for renewal of license for industrial alcohol.”

6. Since the Hon’ble High Court in the aforesaid judgment has held that the State

Government is denuded of its power to prohibit the manufacturer of industrial alcohol . The only

power available to the State Government as detailed and laid down by the Constitution Bench in

the case of Synthetics and Chemicals Ltd. (supra) is that the State may lay down regulations to

ensure that non-potable alcohol, like industrial alcohol is not diverted or misused as a substitute

for potable alcohol.

7. However, in compliance of the judgment passed by the Hon’ble High Court of Patna

in the matter of CWJC 1737/2017 and Interim order passed by the Hon’ble Supreme Court of

India on 14.07.2017 in the matter of SLP(CIVIL)-16828-16831/2017; State of Bihar Vs Bihar

Distillers and Bottlers Pvt. Ltd and Others and orders passed in MJC No. 3420 of 2017; M/s

Globus Spirits Limited Vs State of Bihar, in order to prevent the misuse of industrial alcohol for

consumption as potable alcohol, it is hereby directed that if the applicant manufacture

industrial alcohol (ENA) within the State Of Bihar, then such manufacturer of industrial alcohol

( ENA) will be subject to the following conditions and will have to abide by the same—

(i)

The manufacturer company/distillery shall not act in any manner prejudicial to

the interest of the Government policy.

(ii)

The distillery shall neither manufacture the potable alcohol nor convert the

industrial alcohol (ENA) to potable alcohol.

(iii)

The Industrial alcohol (ENA) if produced shall entirely be exported outside the

State of Bihar.

(iv)

All the consignments, be it raw material or the final product entering in and

exiting out of the distillery premises, shall be transported in digitally locked GPS

enabled containers.

BIHAR GAZETTE (EXTRA), 16TH MARCH 2018

(v)

The Commissioner shall appoint such officers and establishment as he thinks fit

to the charge of the distillery for inspection and regulation in view of the

conditions laid herein as well as the provisions of the Bihar Prohibition and

Excise Act,2016 and rules made there under.

(vi)

The operation of the distillery shall be under CCTV surveillance round the clock

and the data of the same will be stored so that the same can be viewed by the

inspecting authority as and when required.

(vii)

The manufacturer company shall be bound by all general or special order which

may be issued by the Excise Commissioner from time to time.

(viii) The industrial alcohol if produced by manufacturer company/Distillery shall be

subject to periodical analysis by or under the orders of Collector/Deputy

Commissioner or the Excise Commissioner, and the manufacturer company shall

take steps to remedy any defects in the quality thereof which the Excise

Commissioner may consider material.

(ix)

The manufacturer company shall be bound to make such arrangements as may be

prescribed in writing by the Collector/Deputy Commissioner for the disposal of

effluents, waste matter and refuse and shall be bound to comply with the

provisions contained in Water (Prevention and Control of Pollution) Act, 1974,

The Air (Prevention and Control of Pollution) Act, 1981 and the Environment

(Protection) Act, 1986.

(x)

The Commissioner shall appoint such officers and establishment as he thinks fit

to the charge of the distillery for the inspection and regulation of the conditions

laid herein as well as the provisions of the Bihar Prohibition and Excise Act,

2016 and rules made there under.

(xi)

The Government shall not be held responsible for the destruction, loss or damage

by fire, theft or any other cause whatsoever, occurring to any industrial alcohol

stored in the distillery or in gauging, weighment or proof. In case of fire or other

accident the officer in charge of the distillery shall immediately attend to open it

at any hour by day or night.

(xii)

The distiller shall keep accurate and regular daily accounts showing

(a)

The quantity and description of materials used.

(b)

quantity of wash and Industrial alcohol manufactured.

(c)

quantity of wash used.

(d)

quantity of Industrial alcohol passed out

(e)

quantities of wash and Industrial alcohol in store.

(f)

quantities of by product like impure spirit in store.

(g)

quantity of denaturants used and in store.

(xiii) The manufacturer company shall be bound by the undertaking tendered before

the Hon’ble Supreme Court and recorded in the order dated 14.07.2017 in the

SLP ( C ) 16828-16831/2017.

(xiv)

The breach, non-performance or non-observance by the manufacturer

company/distillery or his agent of any of the conditions specified herein or any

provision of the Bihar Prohibition and Excise Act, 2016 or rules framed

thereunder, so far as they relate to the manufacture/production of Industrial

alcohol (ENA), shall be liable for penal action as per the provisions of the Bihar

Prohibition and Excise Act,2016 .

By Order,

(Sd) Illegible,

Excise Commissioner Bihar.

⁴

BIHAR GAZETTE (EXTRA) 16TH MARCH 2018

COUNTER AGREEMENT

I....................................................................the

above

named

manufacturer

company/distillery for myself and my heirs, legal representatives and assignees, hereby agree to

all the terms and conditions hereinbefore written and expressed.

Dated...........................20.....

Witnesses

Signature

————

PUBLISHED AND PRINTED BY THE SUPERINTENDENT,

BIHAR SECRETARIAT PRESS, PATNA.

Bihar Gazette (Extra) 245—571+10—Egazette

Website: http://egazette.bih.nic.in