BILAL NAZKI, J. ( 1 ) ALL these Writ Petitions raise common questions of fact and law and were heard together and as such they are being disposed of by this common judgment. For facts we would be referring to W. P. No. 10874/96. Only one counter has been filed by the respondents in W. P. Nos. 10874/96,10875/96 and 10876/96 and that counter would be referred to while referring to the facts. ( 2 ) THE petitioners are companies under the Indian Companies Act. All of them have distilleries to manufacture various grades of industrial alcohol from molasses. In w. P. No. 10874/96 it has been averred that the petitioner company utilizes molasses which is a bi-product in the manufacture of sugar. The petitioners are challenging the validity of the Andhra Pradesh Rectified spirit Rules, 1971 as amended from time to time on the ground that they are illegal, arbitrary and ultravires to the Constitution of India in so far as they are made applicable to the industries manufacturing, processing, transporting and dealing with the Industrial alcohol. The petitioners have further questioned the action of respondents in insisting upon the petitioners to obtain no- objection certificate and payment of pass fee and excise duty on export of Rectified Spirit (Industrial grade) to other countries and other industrial units within India as illegal, arbitrary and ultravires the powers of State legislature and violative of the rights enshrined under Articles 14, 19 (1) (g), 265 and 301 of the Constitution. According to the petitioners in W. P. No. 10874/96 their company is engaged in manufacture and sale of alcohol having its unit located at vuyyuru, Krishna district. The petitioners applied for and were granted licence by the government of India, Ministry of commerce and Industry for establishing an industry for the manufacture of Industrial alcohol. The petitioners manufacture rectified spirit (95% Ethyle Alcohol) from molasses which is a bi-product of Sugar industry. The Rectified spirit being manufactured by the petitioners has many industrial uses and it is used in manufacture of Acetic acid, Acetic Anhydride and various other chemical products which inturn are consumed by various industries. This alcohol could also be used in the manufacture of potable liquor or IMFL which is commonly known as alcohol fit for human consumption. The Rectified spirit being manufactured by the petitioners has many industrial uses and it is used in manufacture of Acetic acid, Acetic Anhydride and various other chemical products which inturn are consumed by various industries. This alcohol could also be used in the manufacture of potable liquor or IMFL which is commonly known as alcohol fit for human consumption. The petitioners claim that the Rectified spirit they manufacture and sale or export is not fit for human consumption as it is highly toxic substance having regard to the fact that it has 95% content of Ethyle alcohol. Prior to the imposition of total prohibition on the manufacture, sale and consumption of alcoholic drinks in Andhra Pradesh a major portion of the Rectified spirit manufactured by the petitioners was being supplied to the government of Andhra Pradesh as raw material for their industries and industrial units manufacturing potable alcohol and imfl but subsequent to the imposition of prohibition in the State of Andhra Pradesh there was no demand for Rectified spirit in the State of Andhra Pradesh. Therefore, the petitioners made efforts to export the rectified spirit to other States within the country but they could not do so because the rectified spirit available from some of the surplus States like Uttar Pradesh, maharashtra was cheaper. They claimed that the price of Rectified spirit manufactured in Andhra Pradesh is much higher than the price in some other States and this is because of higher power tariff, higher licence fee and higher duty etc. , in andhra Pradesh. Since they could not sell it in Andhra Pradesh nor could they sell it in other States, they explored the possibility of exporting the Rectified spirit to foreign countries. It is further stated that, molasses is a bi-product of Sugar Industry. Since the sugar is being manufactured the molasses obtained as bi-product if not used would become a health hazard and would threaten the environment. Therefore, it is otherwise necessary to use molasses as raw material for Rectified spirit. In this factual background the petitioners state that the government of Andhra Pradesh has in exercise of its powers under Section 72 of the andhra Pradesh Excise Act enacted the A. P. Rectified Spirit Rules, 1971 which provide a set of rules for the persons who deal in rectified spirit. In this factual background the petitioners state that the government of Andhra Pradesh has in exercise of its powers under Section 72 of the andhra Pradesh Excise Act enacted the A. P. Rectified Spirit Rules, 1971 which provide a set of rules for the persons who deal in rectified spirit. Under Rule-3 there is a prohibition to possess, use, transport, import or export Rectified spirit except in accordance with rules. Rule 4 lays down that rectified spirit shall not be issued from a distillery or a warehouse without prepayment of extra duty. Rule 15 (1) lays down that Rectified spirit shall not be exported without an export permit issued in accordance with Rules. Sub-rule (2) of rule 15 further lays down that any manufacturer or possessor of spirit desirous to export the spirit to any area outside the state shall have to apply in Form ARS-V to the Commissioner for export permit in that behalf. Such application shall only be entertained if the Rectified spirit is in surplus in the State of Andhra Pradesh. This export shall only be allowed on production of import permit or a no-objection certificate or an import licence issued by the competent authority of the place to which the Rectified spirit is to be exported. Under sub-rule (3) of rule 15, when such an application is made before the Commissioner the Commissioner is bound to make an enquiry and after making such enquiry he may grant necessary permission to export spirit on payment of fee as prescribed by the government from time to time. According to the petitioners, these Rules make it abundantly clear that possessing, transporting or exporting of Rectified spirit without obtaining a licence or permit is prohibited. They further contend that the primary aim and object of the Excise Act was to regulate the law relating to production, manufacture, possession, transport and sale of intoxicating liquor, drugs, etc. According to the petitioners, section 2 (9) of the Excise Act defines an excisable article which means (a) any alcoholic liquor for human consumption, (b) any intoxicating product, (c) opium, (d) other Narcotic product or psychotropic substance which the Government may by notification declare to be an excisable article. According to the petitioners, section 2 (9) of the Excise Act defines an excisable article which means (a) any alcoholic liquor for human consumption, (b) any intoxicating product, (c) opium, (d) other Narcotic product or psychotropic substance which the Government may by notification declare to be an excisable article. ( 3 ) IN the light of the factual and legal position, the argument which is sought to be advanced at the Bar is that, industrial alcohol is out of the purview of the Excise act. It is contended by the learned Counsel for the petitioners that the State has only power to legislate with regard to the alcohol or drugs which are fit for human consumption. The alcohol which has 95% content of Ethyle alcohol is decidedly not fit for consumption and it is only being used for the purpose of industry and therefore it is outside the purview of the Excise Act and also outside the State s jurisdiction. ( 4 ) BEFORE going to the arguments which are advanced it will be necessary to refer to counter filed by the respondents. It is contended in the counter that, in terms of section 72 of the A. P. Excise Act, 1968 the government of Andhra Pradesh has framed a. P. Rectified Spirit Rules, 1971 which govern the purchase, sale, transport etc. , of rectified spirit. It is further contended that the petitioners besides having a licence obtained from the Government of India, ministry of Commerce and Industry have also obtained a licence in Form-D2 from the andhra Pradesh Excise authorities under a. P. Excise Act, 1968. According to the A. P. Excise Act and rules made thereunder any person desirous of manufacturing Rectified spirit shall have to apply to the Government under Rule 9 for issuance of Letter of Intent which is then converted into licence in form-D2 which is to be issued by the commissioner of Prohibition and Excise on fulfilment of conditions prescribed. It is submitted that there are 21 Rectified Spirit producing distilleries which have taken D-2 licence which are functioning for the last 20 years and after introduction of total prohibition all the Rectified spirit producing distilleries which have applied have got their D-2 licence renewed in 1995-96 and in 1996-97, 17 out of 21 distilleries which applied for renewal of licence had been granted licences. It is submitted that rectified spirit is a dynamic common base material which is manufactured primarily for potable purpose and then for Medicinal and Toilet preparations. The respondents further contended that as per the Indian standard specification No. 323 of 1959 of indian Standard Specifications for Rectified spirit the material conforming to Grade-I shall be suitable for use as an agent for pharmaceutical and Medicinal purposes and for the purpose of production of alcoholic beverages, Grade-II is identified as the material for the other industrial purposes. In other words it is contended that, though both the Grade-I and Grade-II contain the same strength of Ethanol, Grade-I being more pure is fit for human consumption and grade-II containing impurities is not fit for human consumption. In common parlance according to the respondents Grade-I rectified spirit diluted with water becomes readily and instantly potable. Before prohibition a major portion of Rectified spirit that was being manufactured was diverted for production of arrack and Indian made liquor and other alcoholic liquors and only a minor portion was used for industrial purposes. The respondents have also given some statistics from 1990-91 to 1995-96 which are reproduced.