( 1 ) THIS writ petition has been filed for a writ of certiorari to quash the impugned notification dated 31. 3. 2004 issued by the State of U. P. framing rules under Section 40 (1) and (2) of the u. P. Excise Act, 1940 known as the Uttar Pradesh Excise Import, Export, Transport and possession of Denatured Spirit (Twenty Fourth Amendment) Rules, 2004 (Annexure-1 to the petition ). The petitioner has also prayed for quashing of the impugned order dated 16. 6. 2004 issued by respondent No. 3, and has further prayed for quashing the impugned demand notice dated 18. 6. 2004 issued by respondent no. 5 demanding payment of import permit fee @ Rs. 1. 50 per l e, vide Annexure-IX. The petitioner has also prayed for a mandamus directing the respondents not to take any proceedings in pursuance of the impugned notification dated 31. 3. 2004, order dated 16. 6. 2004, and demand notice dated 18. 6. 2004 requiring the petitioner to obtain a permit for import of denatured and specially denatured spirit within the State of Uttar pradesh and/or requiring the petitioner to deposit an import fee of Rs. 1. 50 paise per litre on such import.

( 2 ) HEARD Sri Bharat Ji Agrawal, learned Senior Counsel and Sri Nikhil Agrawal, learned counsel appearing on behalf of the petitioner as well as the learned Standing Counsel for the respondents. We have also perused the counter affidavit, supplementary counter affidavit and the rejoinder affidavit.

( 3 ) THE petitioner is a Public Limited Company registered under the Indian Companies Act having its registered office and works at Bhartiya Gram, Gajraula, District Jyotiba Phule Nagar, uttar Pradesh. The petitioner is engaged, inter alia, in the business of manufacture and sale of organic chemicals, such as acetic acid, acetic anhydride, vinyl acetate etc. The main raw material for the manufacture of the aforesaid organic chemicals is ethyl alcohol industrial grade. Alcohol is manufactured from molasses at the petitioners plant in Gajraula. Apart from the aforesaid, the petitioner is also importing denatured spirit and specially denatured spirit from outside the country. The entire production of industrial alcohol at the petitioners distillery as well as industrial alcohol procured from outside sources is used by the petitioner at its chemical plant for producing organic chemicals mentioned above. It is alleged that the industrial alcohol is neither potable nor fit for human consumption.

( 4 ) THE State of Uttar Pradesh in purported exercise of power under Section 40 (1) and (2) of the u. P. Excise Act, 1910 amended the rules relating to import, export, transportation and possession of denatured spirit. These rules are known as the Uttar Pradesh Excise Import, export, Transport and Possession of Denatured Spirit (Twenty Fourth Amendment) Rules, 2004. The relevant portion of the Rules as substituted by (Twenty Fourth Amendment) Rules, 2004 has been quoted in paragraph 12 of the writ petition. Copy of the said notification dated 31. 3. 2004 has been annexed as Annexure-1 to the petition.

( 5 ) IT is alleged by the petitioner that in view of the Constitution Bench decision of the Supreme court in Synthetics and Chemicals Ltd. v. State of U. P. and Ors. , AIR1990 SC 1927 , JT1989 (4 )SC 267 , 1989 (2 )SCALE1045 , (1990 )1 SCC109 , [1989 ]supp1 SCR623 , the State Legislature/state Government has no jurisdiction over denatured spirit and specially denatured spirit, as they are industrial alcohol and unfit for human consumption. It is alleged in paragraph 16 of the writ petition that the petitioner imported the denatured and specially denatured spirit from abroad to cater to its requirement for the manufacture of chemicals in its plant.

( 6 ) THE petitioner, vide letter dated 31. 3. 2004 sought permission from the State Government for importing specially denatured spirit from outside the country. True copy of the said letter dated 31. 3. 2004 has been annexed as Annexure-V to the petition. Thereafter the petitioner se

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