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The Industries (Development And Regulation) Amendment Act, 2016

The present Amending Act (Act no. 27 of 2016) is enacted by the Parliament of India in the 67th year of Republic of India, with the aim and object to further amend the provisions of the Industries (Development and Regulation) Act, 1951 (Act no. 65 of 1951), which here for reference may be called as Principal Act, which was enacted, earlier, with the basic aim and object to make provisions for the development and regulation of certain industries. Moreover, certain industries specified in the First Schedule of that Act were required to be took under control by the Union. Notably, the 26th heading in the said First Schedule annexed to the Principal Act was providing for the Fermentation Industries which includes Alcohol and other products of fermentation industries. Moreover, the honourable Supreme Court of India, in the case of Bihar Distillery and another Vs. Union Of India and Ors. (AIR 1997 SC 1208), has held that in the interest of proper delineation of the spheres of the Union and the States, the line of demarcation should be drawn at the stage of clearance or removal of the rectified spirit. The decision was given by the Apex Court in January, 1997 also states that where the removal or clearance is for industrial purposes (other than the manufacture of potable liquor), the levy of duties of excise and all other control should be with the Union and where the removal or clearance is for obtaining or manufacturing potable liquors, the levy of duties of excise and all other control should be with the states. As such, a bill in this connection for confirming the said decision of the Supreme Court of India was brought and consequently it turns Act by this year.

For bringing the effects of the said judgement in the existing Principal Act, the Amending Act is inserting a new section as 29E after section 29D to the Principal Act, for validation. Similarly, the first schedule, as affixed to the Principal Act is also amended to replace its 26th entry with the new 26th entry “FERMENTATION INDUSTRIES (OTHER THAN POTABLE ALCOHOL).”

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