State governments lack the legislative competence to regulate or levy excise duties on molasses used for non-intoxicant purposes, as such substances do not fall within the definition of 'intoxicating liquor' or 'alcoholic liquor for human consumption' under the constitutional entries and the parent excise legislation.

C.A.V Order

Per Ramesh Sinha, Chief Justice

1 Heard Mr. Manoj Paranjpe, learned Senior Advocate assisted by Mr. K. Rohan, Mr. Kabeer Kalwani, Mr. Pankaj Singh, Mr. Amit Sharma, Mr. T.K.Tiwari, Mr. Manish Nigam, learned counsel appearing for the respective petitioners. Also heard Mr. Shashank Thakur, learned Additional Advocate General for the State, Mr. Ramakant Mishra, learned Deputy Solicitor General alongwith Mr. Roop Ram Naik, Ms.Annapurna Tiwari, Mr. Amitesh Kumar Pandey and Mr. Rishabh Dev Singh, learned counsel appearing for the respondent/Union of India.

2 Since the facts and issues involved in this batch of petitions are identical, they are being considered and decided by this common judgment and WPC No. 3580/2022 is taken as the lead case.

3 By these petitions under Article 226 of the Constitution of India, the petitioner seeks for the following relief(s):

“a) Call for the entire records pertaining to the present case.

b) Hold and declare that the impugned Enactment i.e. Chhattisgarh Molasses Control and Regulation Rules, 2022 (Annexure P/1) is ultra vires to the Constitution of India.

c) Grant the cost of the petition to the petitioner.

d) Grant any other relief as deemed fit and proper in the facts and circumstances of the case.”

4 Similar prayers have been made in all other petitions, except WPC No.536/2026, wherein the following relief(s) have been claimed:

“A. hold and declare that the Chhattisgarh Molasses Control and Regulation Rules, 2022, purportedly framed under Section 8 and Section 62 of the Chhattisgarh Excise Act, 1915, are ultra vires the Constitution of India and beyond the legislative competence of the State, in so far as they seek to regulate, control, license or otherwise interfere with trade in molasses used for non-intoxicant purposes. and are consequently null and void to that extent;

B. hold and declare that molasses, when dealt with by the Petitioner as a GST-registered trader for non-intoxicant purpose is not an "intoxicant", "liquor" or "excisable article within the meaning of Sections 2(6), 2(11-a), 2(12) and 2(13) of the Chhattisgarh Excise Act. 1915, and therefore does not fall within the regulatory or fiscal ambit of the said Excise Act;

C. hold and declare that the State Government has no authority in law under Entries 8 and 51 of List II of the Seventh Schedule to the Constitution, read with the Chhattisgarh Excise Act, 1915, to insist upon an Excise licence under Rule 8 of the Chhattisgarh Molasses Control and Regulation Rules, 2022 from traders such as the Petitioner, who deal in molasses exclusively for non-intoxicant uses and have no nexus with manufacture, production or sale of liquor or intoxicants;

D. issue an appropriate writ, order or direction in the nature of certiorari, quashing and setting aside:

i. the Chhattisgarh Molasses Control and Regulation Rules, 2022 (to the extent they are sought to be applied to the Petitioner's business of non-intoxicant molasses trade); and

ii. all consequential circulars, directions, notices, communications, oral or written demands, and proposed or initiated steps of the Respondent-authorities insisting that the Petitioner obtain a licence under Rule 8 of the said Rules, 2022, or threatening coercive measures for non compliance;

E. issue an appropriate writ, order or direction in the nature of mandamus restraining the Respondents, their officers, servants and agents from:

i. compelling the Petitioner to apply for or obtain any Excise licence in respect of his trading activities in molasses for non-intoxicant purposes;

ii. conducting Excise raids, inspections, seizures, searches, or initiating prosecution or penal proceedings against the Petitioner solely on the ground that he does not hold an Excise licence under the impugned Rules, 2022, in relation to such non-intoxicant activities; and

iii. otherwise obstructing, interfering with or harassing the Petitioner in the peaceful conduct of his GST-registered business of trading