Perfume manufacturers challenge Prohibition Act in Gujarat HC over supervision fee

Ahmedabad: Perfume manufacturers have challenged the constitutional validity of parts of the Gujarat Prohibition Act in the Gujarat High Court. The state prohibition and excise department had imposed a “supervision fee” on perfume makers using industrial alcohol, prompting these manufacturers to take this action.

Ten perfume manufacturers from the Kandla Special Economic Zone (SEZ) have filed a petition in the Gujarat High Court through advocate Vikas Nair.

The petition states that non-potable denatured ethanol, which is unfit for human consumption, is a key raw material in perfume production. In January 2023, the prohibition department demanded that one perfume factory pay “supervision fees” for using this industrial alcohol. The industry association protested this state interference in the SEZ. Later, the license of that unit was canceled, and it was forced to shut production.

Additionally, the petition alleges that supervision fees were demanded from 10 such units. The perfume manufacturers have asked the high court to overturn the state government’s decision to levy these fees and questioned the state’s legislative authority to regulate the possession, use, transport, and storage of denatured ethanol.

Their lawyer referenced a 2016 amendment to the Industries (Development & Regulation) Act, which now grants the Union government control over licensing and regulation of industrial alcohol.

As per the petitioners, several sections of the Gujarat Prohibition Act, 1949, and the Bombay Denatured Spirits Rules now violate Articles 246, 14, 19, and 300A of the Constitution.

Chief Justice Sunita Agarwal and Justice Pranav Trivedi have instructed the petitioners to include the Centre as a respondent and asked the state’s advocate general to address the court. The next hearing is scheduled for next week.