( 1 ) IN these writ petitions the basic question pertains to the power of the state government to fix the price of rectified spirit to be sold to the manufacturers of arrack. This question is sought to be projected by reference to several rules made under the Provisions of the Karnataka Excise Act, 1965 ('the act' for short ). Petitioners primarily rely on the decision of the Supreme Court in synthetics and chemicals ltd. , etc. V state of U. P. and others (hereinafter referred as the 'second synthetics case' ). Rectified spirit is manufactured out of molasses by a process of fermentation. It is not fit for human consumption and it is not potable alcohol. Therefore, according to the petitioner it is not an 'intoxicant' or 'liquor' in the ordinary sense of the term. Rectified spirit is also called industrial alcohol which is the raw material for the use in many chemical and drug industries. It is also a raw material in the manufacture of potable alcohol including arrack and other liquors such as whisky, brandy, etc. Commonly referred as Indian made foreign liquors ('imfl' for short ). In view of the insistence on the part of the respondents, petitioners have obtained licences in respect of the distillery units under sections 13 to 15 of the act and the rules framed thereunder. Thus the licences according to the petitioners are limited to regulate the activities of the distilleries to prevent diversion and misuse of rectified spirit for the purpose of illicit manufacture of potable alcohol. It is stated that ethyl alcohol grade-i is the raw material used in the pharmaceutical industries, imfl and arrack manufacturers as well as in chemical industries. This is 66 op (over proof ). Ethyl alcohol below the said degree cannot be used as a raw material in the manufacture of the articles referred just now. When this grade-i ethyl alcohol is treated with certain chemicals it is converted into "de-natured spirit", used for chemical purposes. It cannot be used for the manufacture of the arrack, imfl, etc. A small quantity of ethyl alcohol manufactured by the petitioners is permitted to be converted into de-natured spirit. Earlier, industry engaged in the manufacture or production of alcohol and other products of fermentation industries were brought under the first schedule to the industries (development and regulation) Act, 1951 (hereinafter referred as 'idr act' ). In the exercise of the powers vested in the central government under this Act, ethyl alcohol price control Order, 1971, as well as molasses control Order, 1961, were issued which regulated and controlled the supply and sale of ethyl alcohol and molasses. According to the petitioners, the price of rectified spirit produced by them were, all along, regulated under the price control orders referred above. But these price control orders were withdrawn on 10-6-1993 by two notifications (annexures a and b ). Therefore the central government has clearly permitted free formulation of prices. This is also clear, says the petitioners, by the circular dated 11-6-1993 addressed to all state governments, by the secretary to the department of chemicals and petro chemicals, government of india, New Delhi (Annexure-C ). The said circular states that the earlier price control orders outlived their utility and that the regime of controls is inhibiting the free movement of molasses and alcohol and causing unnecessary delays which are having adverse effect on the down stream industries. The relevant sentences reads thus:"however, not it is felt that these orders have outlives their utility and in fact the regime of controls is inhibiting the free movement of molasses and alcohol, and causing unnecessary delays which are having an adverse effect on the downstream industries. In line with the economic liberalisation programme of the government, market forces need to be allowed to operate and controls minimised for allowing the realisation of full potential of the growth of industrie