INDIAN CHEMICAL AND PHARMACEUTICAL WORKS HYDERABAD Vs. STATE OF ANDHRA PRADESH
HIGH COURT OF ANDHRA PRADESH
INDIAN CHEMICAL AND PHARMACEUTICAL WORKS, HYDERABAD REPRESENTED BY ITS
STATE OF ANDHRA PRADESH REPRESENTED BY ITS SECRETARY, REVENUE DEPARTMENT, HYDERABAD
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Narasimham, J. -
(1.) This is an application for the issue of an appropriate writ against the State of Andhra Pradesh to forbear from enforcing the Notification, G. O. Ms. No. 1376, Revenue dated 5/09/1962, issued under the Hyderabad Intoxicating Drugs Act (Act IV of 1333 F.) (hereinafter referred as the Intoxicating Drugs Act), of rules for the manufacture, possession, sale import, export and transport of Chloral Hydrate, a drug within the meaning of the Drugs Act of 1940. One of the rules provided inter alia that the manufacture of the said drug shall be under a licence granted by the Excise Commissioner on payment of Excise duty of Rs. 500.00 per annum. It would not be necessary to refer to the other specific rules.
(2.) The petitioners, three in number, Messrs. Indian Chemical and Pharmaceutical Works, Hyderabad, Messrs. Pankaj Chemical and Pharmaceutical Works, Hyderabad and Messrs. Commercial Chemical Co., Sanathnagar, Hyderabad, are the manufacturers of the said drug under the licences issued under the Drug Rules framed under the Drugs Act of 1940. They challenge the notification of the respondent Government as ultra vires the powers of the Government on the ground that the Government have no right to include a drug coming within the purview of the Drugs Act of 1940 (Central Act) as an intoxicating drug within the meaning of the Hyderabad Intoxicating Drugs Act (Act IV of 1333 F.) They impugn the Notification on the further ground that Chloral Hydrate is not an intoxicating and narcotic-substance, as defined under Section 2, Clause 4 of the Intoxicating Drugs Act. The further ground of attack is that the Government have no power to impose a duty on the manufacture of Chloral Hydrate and their powers levying impost are confined to the State list (List II of the Seventh Schedule) appended to the Constitution, which, among other items, provides for duties of excise on all alchoholic liquors, opium, Indian hemp and other narcotic drugs and Narcotics (vida item 51). It is further alleged that the Notification infringed their right to carry on trade and business guaranteed under the Constitution Article 19 (1) (f) and (G).
(3.) The State Government in their counter affidavit filed by the Assistant Secretary to Government, Revenue Department, averred that the petitioners are manufacturing nearly forty thousand lbs. of Chloral hydrates, that it had come to the notice of the Excise authorities that the bulk of this product was being mixed in Sendi and liquor to give intoxication, and that the medical opinion is that the drug is highly abnoxious to human health. It is further averred that there was no effective control over the manufacture, sale and possession of the drug by the Excise authorities, and that the Government have taken necessary steps by the above Notification to control its improper use. This Notification does not interfere with the right or the pelitioners to carry on their trade. They repudiated the other allegations impugning the Notification.;
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