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REGISTERED No. D. 221

The Gazette of India

EXTRAORDINARY

PART II—Section 2

PUBLISHED BY AUTHORITY

No. 50 NEW DELHI, MONDAY, NOVEMBER 17, 1969/KARTIKA 26, 1891

Separate paging is given to this Part in order that it may be filed

as a separate compilation.

LOK SABHA

The following Bill was introduced in Lok Sabha on the 17th Novem-

ber, 1969: —

BILL No. 87 or 1969

A Bill further to amend the Union Duties of Excise (Distribution)

Act, 1962.

BE it enacted by Parliament in the Twentieth Year of the Republic of India as follows:—

1. This Act may be called the Union Duties of Excise (Distribution)

Short title.

Amendment Act, 1969.

3 of 1962.

Amend- ment of long title.

2. In the long title of the Union Duties of Excise (Distribution) Act, 1962 (hereinafter referred to as the principal Act), for the words, figures and letters "dated the 12th day of August, 1965", the words, figures and letters "dated the 31st day of July, 1969" shall be substituted.

3. For section 2 of the principal Act, the following section shall be

substituted, namely: —

Substi- tution of new section for section X Definition.

'2. In this Act, the expression "distributable Union duties of ex- cise" means twenty per cent, of the net proceeds of the duties of ex- cise levied and collected under the Central Excises and Salt Act,

873

874 THE GAZETTE OF INDIA EXTRAOKDINABY [PART I]

1 of 1944. 27 of 1958. 1944, and

4. For section 3 of the principal Act and the provisos thereto, the fol-

lowing section shall be substituted, namely: —

Substitu- tion of new sec- tion for section 3.

"3. During each financial year commencing on and alter the 1st day of April, 1969, there shall be paid out of the Consolidated Fund of India to each of the States specified in column 1 of the Table below such percentage of the distributable Union duties of excise as ia set out against it in column 2:—

Distribu- tion of a part of Union duties of excise among the States.

TABLE

I State

2 Percentage

7-15

2-51 13-8i 4 17 1 49

4-28 8-48 7*93 . • 465 0-08 4-72 2 17

5 28 6" 50

18-82

Andhra Pradesh Assam Bihar Gujarat Haryana Jammu and Kashmir . Kerala Madhya Pradesh Maharashtra Mysore Nagaland Orissa Punjab Rajasthan Tamil Nadu . Uttar Pradesh • West Bengal .

6 •84.".

Sue. 2] THE GAZETTE OF INDIA EXTRAORDItfABY S75

STATEMENT OF OBJECTS AND REASONS

At present 20 per cent, of the net proceeds of the Union duties of ex- cise on all commodities which are subject to such duties under the Cen- tral Excises and Salt Act, 1944 and the Mineral Products (Additional Duties of Excise and Customs) Act, 1958 are distributed emong the States. The Fifth Finance Commission has also recommended that 20 per cent, of the net proceeds of Union Duties of Excise on all articles levied and col- lected in each of the years 1969-70, 1970-71 and 1971-72 excluding special excises, regulatory duties and duties and cesses levied under special Acts and earmarked for special purposes should be distributed among the States in accordance with the percentages recommended by them. It has further recommended that during the years 1972-73 and 1973-74, besides 20 per cent, of the net proceeds of Union Duties of Excise levied and collected In those years (other than special excises, regulatory duties and earmark- ed duties and cesses), the net proceeds of Special Duties of Excise levied under the Finance Acts of those years should also be distributed among the States. The Bill is intended to give effect to these recommendations.

NEW DELHI;

P. C. SETHI.

ffte- 14th October, 1969.

PRESIDENT'S RECOMMENDATION UNDER ARTICLES 117 AND 274 OF THE CONSTITUTION OF INDIA

[Copy of letter No. F. 2 (3) -FCC 169, dated the 4th November, 1969 from Shri Prakashchand B. Sethi, Minister of State in the Ministry of Finance to the Secretary, Lok Sabha.]

The President having been informed of the subject matter of the proposed Bill to further amend the Union Duties of Excise (Distribution) Act, 1962, in pursuance of the principles of distribution formulated and the recommendations made by the Finance Commission in its Final Re- port dated the 31st day of July, 1969, recommends under article 117(1) and (3) of the Constitution of India read with article 274(1) thereof, the introduction of the Union Duties of Excise (Distribution) Amend- ment Bill, 1969, in the Lok Sabha and also the consideration of the Bill.

876 THE GAZETTE OF INDIA EXTBAORDINABY [PART II—Sic. 2;

FINANCIAL MEMORANDUM

Clause 4 of the Bill provides for payment of a part of the net proceeds of the Union Excise Duties to the States. At the current rates of duties and on the basis of the estimated receipts the Bill will involve the pay- ment from the Consolidated Fund of India to the States of a sum of about Rs. 1570 crares in the five years 1969-70 to 1973-74 representing an In- crease of about Rs. 45 crores over the amount which the States would have been entitled under the present sharing arrangements. The pay- ments to the States during current financial year are estimated at Rs. 265.96 crores.

The Bill does not involve any non-recurring expenditure.

S. L. SHAKDHER,