REGISTERED No. D-(D)-73
The Gazette of India
EXTRAORDINARY
PART II—Section 2
PUBLISHED BY AUTHORITY
No. 39] NEW DELHI, WEDNESDAY, JULY II, 1979/ASADHA 20, 1901
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 11th July, 1979: —
BILL NO. 89 or 1979
A Bill to provide for the payment out of the Consolidated Fund of India
of sums equivalent to the net proceeds of Union duties of excise on
electricity to the States to which the law imposing the duty extends
and for the distribution of those sums among those States in accord-
ance with the recommendations of the Finance Commission, in its
report dated the 28th day of October, 1978.
BE it enacted by Parliament in the Thirtieth Year of the Republic of India as follows: —
1. (1) This Act may be called the Union Duties of Excise (Electricity) Short .Distribution Act, 1979.
title com-
1979.
(2) It shall be deemed to have come into force on the 1st day of April, mence- ment.
2. In this Act, the expression "distributable Union duties of excise on Deflni- electricity" means the net proceeds of Union duties of excise on electricity tion levied and collected, other than in Union territories, under the Central 1 of 1of 1944 Excises and Salt Act, 1944 and any other law for the levy and collection of such duty, unless the law earmarks the proceeds of the duty for any special purpose.
Explanation.—The expression "net proceeds" has the same meaning as In clause (1) of article 279 of the Constitution.
( 6 1 7)
6x8 THE GAZETTE OF INDIA EXTRAORDINARY [PART II—Payment 3. During the Financial year commencing on the 1st day of April, to States 1979 and each of the four succeeding Financial years there shall be paid, of sums out of the Consolidated Fund of India, to the States sums equivalent to equiva- the distributable Union duties of excise on electricity levied and collected lent to in that year and those sums shall be distributed to each of the States speci- the net fied in column (1) of the Table below in such percentage as is set out proceeds against it In column (2) for the respective year :— of Union duties of excise on electri- city and, dis- tribution of the sums among them.
TARI v TABLE TABLE
( I)
State
Percentage
1979-80
1980-81
1981-82
1982-83
1983-84
7.82
Andhra Pradesh
8.92
8.58
8.71
9 15
0.72
0.92
Assam
1 41
1 37 1 49
6 66
Bihar
6.80
6.88
6.64
6 55
7.67
Gujarat
7-77 7 49
7-50
7-33
3.21
2.91
3.20
2.89
2.99
Haryana .
0.72
0.72
Himachal Pradesh
0.71
0.79
0 73
0.90
1.00
0.78
Jammu and Kashmir
0.86
0 79
7.10
Karnataka
7.24
6.70
6.46
4.20
Kerala
3.62
3-77 3 53 3-58
5.98
5.86
6.09
Madhya Pradesh
6 13
5-47
Maharashtra
13.26
14.48
13 69
13 34
HM
0 05
0 07
O-OI
0.08
0.09
Manipur .
0.26
Meghalaya
0.22
0 29
0 *&
0 08
0.09
0.07
0 08
0.09
Nagaland .
4.01
3.70
Orissa
3 89
3-54 3-7"
5.00
5.90
5.10
5.06
Punjab
5-55
3 62
Rajas than
3-55
3 97
3 40 3 4"
6.65
6 38
7 28
Tamil Nadu
7-25
6 93 11 40
13 40
H 51
12 28
1 1 87
Uttar Pradesh .
8.90
8.52
9 68
8.45
West Bengal
9 44
SEC. 2] THE GAZETTE OF INDIA EXTRAORDINARY 6194. The expenditure on the payments in pursuance of section 3 shall be Payment charged on the Consolidated Fund of India.
*° *** charged on the Consoli- dated Fund of India.
5. (I) The Central Government may, by notification in the Official Power Gazette, make rules providing for the time at which and the manner in t o ma e which, any payments under this Act are to be made, for the making of adjustments between one financial year and another and for any other In- cidental or ancillary matters.
(2) Every rule made under this section shall be laid, as soon as may be after it is made,, before each House of Parliament, while It is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the qession or the successive sessions afore- said, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule.
620 THE GAZETTE Or INDIA EXTRAORDINARY [PART II—STATEMENT OF OBJECTS AND REASONS
During each of the financial year from 1974-75 to 1978-79, based on the recommendations of the Sixth Finance Commission, a sum equivalent to twenty per cent, of the annual net proceeds of Union duties of excise, ex- cluding cesses levied under special Acts and earmarked for special pur- poses, was paid to the States and distributed among them in the percent- ages which that Commission had recommended. The Seventh Finance Commission, in its Report 1978, recommended that—
(i) forty per cent, of the net proceeds of Union duties of excise, other than on generation of electricity, levied and collected during each of the years 1979-80 to 1983-84, excluding cesses levied under special Acts and earmarked for special purposes, should be paid out of the Consolidated Fund of India to the States and distributed among them in the percentages recommended by the Commission; and
(ii) during each of the years 1979-80 to 1983-84, the net proceeds of the Union duties of excise on generation of electricity should be paid out of the Consolidated Fund of India to each State in an amount equal to the collection in or attributable to that State.
The Union Duties of Excise (Distribution) Act, 1979, to give effect to item (i) of the above recommendation of the Commission, has already been enacted by Parliament in May, 1979.
In making its recommendation at item (ii) above, the Seventh Finance Commission had also taken note of the State-wise estimates of revenues,, net of cost of collection, from Union duty of excise on electricity, in each of the five years from 1979-80 to 1983-84, based on the anticipated energy availability in each State as contained in the Tenth Annual Power Survey. The Bill, which seeks to give effect to item (ii) of the above recommenda- tion, provides for the distribution of the net proceeds of the duty among the States in the same percentages, in the respective year, as the Com- mission had relied upon.
CHARAN SINGH.
NEW DELHI;
The 20th June, 1979.
PRESIDENT'S RECOMMENDATION UNDER ARTICLES 117 AND 274 OF THE CONSTITUTION OF INDIA
[Copy of letter No. FT1T7(6)-B (S)/79, dated the 30th June, 1970 from Shri Satish Agarwal, 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 provide for payment out of the Consolidated Fund of India of sums equivalent to the net proceeds of Union duties of excise on electricity to the States to which the law imposing the duty extends and for the distribution of those sums among those States in accordance with the recommendations of the Finance Commission, In its report dated the 28th day of October, 1978, recommends under clause (1) and (3) of article 117 and clause (1) of article 274 of the Constitution, the introduction of the Union Duties of Excise (Electricity) Distribution. Bill, 1979, in Lok Sabha and also the consideration of the Bill.
SEC. 2] THE GAZETTE OF INDIA EXTRAORDINARY 621FINANCIAL MEMORANDUM
Clause 3 of the Bill provides for payment to the States of the net pro- ceeds of Union duties of excise levied and collected on generation of elec- tricity, other than in Union territories, during the financial year commenc- ing on the 1st day of April, 1979 and each of the four succeeding financial years. The Seventh Finance Commission, whose recommendation in this regard is intended to be given effect to by this Bill, estimated the pay- ment to the States at Rs. 1145.88 crores during the five years 1979-80 to 1983-84.
The Bill does not involve any non-recurring expenditure.
622 THE GAZETTE OF INDIA EXTRAORDINARY [PART II—SEC. 2]MEMORANDUM REGARDING DELEGATED LEGISLATION
Clause 5 of the Bill empowers the Central Government to make rules in respect of matters specified therein, They relate to the time at which and the manner in which any payments are to be made to the States, for the making of adjustments between one financial year and another and for any other incidental or ancillary matters. The matters in respect of which the rules may be made are of a routine and administrative character.
2. The delegation of legislative power is thus of a normal character.
AVTAR SINGH RKHY,