JUDGMENT

B.P. Jeevan Reddy, J.-Until the Commencement of the Constitution and for a few years thereafter, rectified spirit was mainly used for the purpose of manufacturing country liquor, Indian Made Foreign Liquors (I.M.F.L.) and other intoxicating drinks. Its use for industrial purposes was not significant. The rapid pace of industrialization from mid-fifties onwards brought into existence several industries, which required rectified spirit as one of their raw materials, with the result the demand of rectified spirit for industrial purposes went up substantially and has been going up. Evidently, in recognition of this fact, did the Union of India amend, in the year 1956, the Schedule to the Industries (Regulation and Development) Act, 1951 including the alcohol industry therein.

2. Notwithstanding the aforesaid amendment of the Schedule to the Industries (Regulation and Development Act, 1951, the establishment of a distillery, its working and the distribution and sale of the rectified spirit produced by it continued to be regulated by the States as before, under various enactments in force in those States. Similar was the position in the State of Bihar where the first petitioner-d