Mumbai: The Bombay high court (HC) has struck down certain provisions of the ‘Bombay Denatured Spirit Rules, by which the state wanted to regulate the possession, use, sale, import and export of denatured spirit and ethanol, as well as impose duty fees on it.

The court’s decision is a setback for the government as it had claimed that the rules were aimed at ensuring that denatured spirit was not diluted and misused for consumption as ‘hooch’.

The court struck down the rules observing that the power of the government in the case of rectified spirit supplied for industrial purposes is only to see and ensure that the spirit is not diverted or misused for potable purposes.

Several companies that manufacture denatured spirit and ethanol had approached the HC against the new rules introduced by the government recently.

The petitioners had contended that they have already acquired licence from the government for manufacturing the denatured spirit.

They had further contended that the state government only has the power to levy duty on alcoholic beverages for human consumption, including regulating the rectified spirit that can be diverted for potable purpose. On the other hand, government pleader Abhinandan Vagyani, argued that denatured spirit was capable of being re-natured and the new rules prohibit any person from altering or attempting to alter the denatured spirit by diluting with water or any other method so that it could be used for human consumption as intoxicating liquor.

The division bench comprising Justice Abhay Oka and Justice Riyaz Chagla struck down rules 23 to 62 of the Bombay Denatured Spirit Rules, terming it to be ‘ultra vires and unconstitutional’.

The bench held that there shall be no licence required under Maharashtra Prohibition Act for dealing in denatured spirit. The bench said the state can make necessary regulations requiring the industry to submit periodical statements of raw material and the finish product and is entitled to verify their correctness.