 bill no 30 of 2007 the  taxation  laws  (amendment)  bill,  2007 a billfurther to amend the central sales tax act, 1956 and the additional duties of excise(goods of special importance) act, 1957be it enacted by parliament in the fifty-eighth year of the republic of india as follows:— chapter i preliminaryshort title and commencement chapter ii central sales taxamendment of section 674 of 19562 in the central sales tax act, 1956 (hereinafter in this chapter referred to as the principal act), in section 6, for sub-section (2), the following sub-section shall be substituted, namely:—"(2) notwithstanding anything contained in sub-section (1) or sub-section(1a), where a sale of any goods in the course of inter-state trade or commerce has either occasioned the movement of such goods from one state to another or has been effected by a transfer of documents of title to such goods during their movement from one state to another, any subsequent sale during such movement effected by a transfer of documents of title to such goods to a registered dealer, if the goods are of the description referred to in sub-section (3) of section 8, shall be exempt from tax under this act:provided that no such subsequent sale shall be exempt from tax under this subsection unless the dealer effecting the sale furnishes to the prescribed authority in the prescribed manner and within the prescribed time or within such further time as that authority may, for sufficient cause, permit,—(a) a certificate duly filled and signed by the registered dealer from whom the goods were purchased containing the prescribed particulars in a prescribed form obtained from the prescribed authority; and (b) if the subsequent sale is made to a registered dealer, a declaration referred to in sub-section (4) of section 8:provided  further  that  it shall not be necessary to furnish the declaration referred to in clause (b) of the preceding proviso in respect of a subsequent sale of goods if,—(a) the sale or purchase of such goods is, under the sales tax law of the appropriate state exempt from tax generally or is subject to tax generally at a rate which is lower than three per cent or such reduced rate as may be notified by the central government, by notification in the official gazette, under sub-section (1) of section 8 (whether called a tax or fee or by any other name); and(b) the dealer effecting such subsequent sale proves to the satisfaction of the authority referred to in the preceding proviso that such sale is of the nature referred to in this sub-section"amendment of section 73 in section 7 of the principal act, in sub-section (2a), for the words, brackets and figures "clause (a) of sub-section (4) of section 8", the words, brackets and figures "subsection (4)  of section 8", shall be substituted4 in section 8 of the principal act,—amendment of section 8(a) for sub-sections (1) and (2), the following sub-sections shall be substituted, namely:—"(1) every dealer, who in the course of inter-state trade or commence, sells to a registered dealer goods of the description referred to in sub-section (3), shall be liable to pay tax under this act, which shall be three per cent of his turnover or at the rate applicable to the sale or purchase of such goods inside the appropriate state under the sales tax law of that state, whichever is lower:provided that the central government may, by notification in the official gazette, reduce the rate of tax under this sub-section(2) the tax payable by any dealer on his turnover in so far as the turnover or any part thereof relates to the sale of goods in the course of inter-state trade or service not falling within sub-section (1), shall be at the rate applicable to the sale or purchase of such goods inside the appropriate state under the sales tax law of that stateexplanation—for the purposes of this sub-section, a dealer shall be deemed to be a dealer liable to pay tax under the sales tax law of the appropriate state, notwithstanding that he, in fact, may not be so liable under that law"; (b) in sub-section (3), in the opening portion, for the words, brackets,  figure and letter  "the goods referred to in clause (b) of sub-section (1)", the following shall be substituted, namely:—"the goods referred to in sub-section (1),—";(c) for sub-section (4), the following  shall be substituted, namely:—"(4) the provisions of sub-section (1) shall not apply to any sale in the course of inter-state trade or commerce unless the dealer selling the goods furnishes to the prescribed authority in the prescribed manner a declaration duly filled and signed by the registered dealer to whom the goods are sold containing the prescribed particulars in a prescribed form obtained from the prescribed authority:provided that the declaration is furnished within the prescribed time or within such further time as that authority may, for sufficient cause, permit"; (d) in sub-section (5), in clauses (a) and (b), the words "or the government" and the words, brackets and figure "or sub-section (2)", wherever they occur, shall be omittedamendment of section 95 in section 9 of the principal  act, in sub-section (1), in the proviso, in clause (a), for the words, letter,  brackets and figures "clause (a) of sub-section (4) of section 8", the words, brackets and figures "sub-section (4) of section 8" shall be substitutedamendment of section 106 in section 10 of the principal act, in clause (a), the words "certificate or" shall be omittedamendment of section 10a7 in section 10a of the principal act, in sub-section (2), in clause (a), for the words, letter, brackets and figures "clause (a) of sub-section (4) of section 8", the words, brackets and figures "sub-section (4) of section 8" shall be substituted8 in section 14 of the principal act, clause (ix) shall be omittedamendment of section 14 chapter iii additional duties of excise| 58 of 1957                                                                                    ||------------------------------------------------------------------------------------------------|| section 4                                                                                     || 9                                                                                             || in the additional duties of excise (goods of special importance) act, 1957 (hereinafter        || referred to as the additional duties of excise act), section 4 shall be omitted               || amendment                                                                                      || of first                                                                                       || schedule                                                                                      || 10                                                                                            || in the additional duties of excise act, in the first schedule, headings 2401, 2402             || and 2403, and sub-headings and tariff items thereunder, and the entries relating thereto shall || be omitted                                                                                    || 11                                                                                            || in the additional duties of excise act, the second schedule shall be omitted                  || omission of                                                                                    || second                                                                                         || schedule                                                                                      | statement  of  objects  and  reasonscentral sales tax (cst) is levied under the provisions of the central sales tax act,1956 ('the cst act') on the sale of goods in the course of inter-state trade or commerce the cst is levied by the central government by virtue of entry 92a of the union list, but the same is assigned to the states within which the tax is leviable, by virtue of provisions of article 269 of the constitution the cst is leviable in the originating state, ie, the state from where the movement of the goods  commences and is collected and appropriated entirely by such state the cst act is administered by the states by virtue of provisions of section 9 of the said act2 cst being an origin-based tax is inconsistent with vat (which is a destinationbased tax) moreover, cst results in cascading of tax (ie tax on tax), since it is not rebatable against vat in view of  these factors, there has been a consensus that the cst should be phased out this is also a pre-requisite for introduction of an integrated goods and services tax (gst), which the government proposes to introduce by 1st april, 2010 the issue of phasing out of the cst has been deliberated upon for over a decade the empowered committee of state finance ministers (ec), constituted by the government of india, has been making efforts in this direction since july, 2000 finally, after a series of meetings, a consensus has been arrived at between the central government and the state governments on the roadmap for phasing out of the cst as also on the package of compensation to the states for revenue loss on this account3 accordingly, it is proposed to phase out the cst in 4 steps, ie, reducing the cstrate from 4% to 3% wef 1st april, 2007, from 3% to 2% wef 1st april, 2008, from 2% to 1% wef 1st april, 2009 and eventually abolishing the tax on 31st march, 2010 an integrated national goods and services tax (gst) is proposed to be introduced wef 1st april, 2010 the agreed package for compensation to the states for revenue loss on account of phasing out of the cst shall consist of non-monetary measures as well as monetary measures4 the implementation of the above proposals requires the amendment of the cst act as also the additional duties of excise (goods of special importance) act, 1957  consequently the cst act is proposed to be amended to provide for reduction of cst rate from 4% to 3% as also to provide the enabling powers to the central government to reduce it further, in future, through notification in official gazette and to drop tobacco from the list of declared goods, to enable the states to levy vat on tobacco at a rate higher than 4% rate applicable to declared goods5 the additional duties of excise (goods of special importance) act, 1957 is proposed to be amended to drop tobacco from the first schedule of the act, to enable the states to levy vat on tobacco without losing their share out of the 1% devolution from the divisible pool of central taxes it is also proposed to omit section 4 of the additional duties of excise (goods of special importance) act, 1957 and the second schedule of the act, as the same are no more required6 the bill seeks to achieve the above objectsnew delhi;p chidambaramthe 27th february, 2007————president's  recommendation  under  articles  117  and  274  of  theconstitution  of  india————[copy of letter no 34/135/2005-st, dated the 27th february, 2007 from shri p chidambaram, minister of finance to the secretary-general, lok sabha]the president, having been informed of the subject matter of the taxation laws(amendment) bill, 2007, recommends under clauses (1) and (3) of article 117, read with clause (1) of article 274 of the constitution of india, the introduction of the above bill in lok sabha and also recommends to lok sabha the consideration of the bill financial  memorandumclause 4 of the bill proposes to reduce the rate of central sales tax (cst) from 4% to3% wef 1st april, 2007  the tax rate is proposed to be reduced further by 1% every year this will result in revenue loss to the states the total revenue loss due to 1% reduction in the cst rate is estimated at rs 6,350 crores during 2007-08, which will increase with further reduction in cst rate in the following years the agreed package for compensation to the states for revenue loss on account of phasing out of the cst shall consist of non-monetary measures as well as monetary measures for this purpose, a budget provision of rs 2,500 crores has been proposed for the year 2007-08 for release of grant-in-aid to the states on this account memorandum  regarding  delegated  legislationsub-clause (a) of clause 4 of the bill seeks to add a proviso in sub-section (1)  of section 8 of the central sales tax act, 1956 empowering the central government to reduce the rate of tax under the sub-section by notification in the official gazette this has been proposed with a view to smoothern the process of phasing out of the cst as per the roadmap agreed to by the central government and the state governments, under which the cst is to be reduced by 1% every year, ie from 4% to 3% wef 1st april, 2007, from 3% to2% wef 1st april, 2008, from 2% to 1% wef 1st april, 2009 and complete abolition of the tax on 31st march, 2010, ie before the date proposed for introduction of an integrated goods and services tax (gst) the delegation of the legislative power is of a normal character annexure extracts from the central sales tax, 1956 (74 of 1956)    6 (1)     liability to tax on inter- state sales(2) notwithstanding anything contained in sub-section (1) or sub-section (1a), where a sale of any goods in the course of inter-state trade or commerce has either occasioned the movement of such goods from one state to another or has been effected by a transfer of documents of title to such goods during their movement from one state to another, any subsequent sale during such movement effected by a transfer of documents of title to such goods,—(a) to the government, or (b) to a registered dealer other than the government, if the goods are of the description referred to in sub-section (3) of section 8, shall be exempt from tax under this act: provided that no such subsequent sale shall be exempt from tax under this subsection unless the dealer effecting the sale furnishes to the prescribed authority in the prescribed manner and within the prescribed time or within such further time as that authority may, for sufficient cause, permit,—(a) a certificate duly filled and signed by the registered dealer from whom the goods were purchased containing the prescribed particulars in a prescribed form obtained from the prescribed authority; and(b) if the subsequent sale is made—(i) to a registered dealer, a declaration referred to in clause (a) of subsection (4) of section 8, or(ii) to the government, not being a registered dealer, a certificate referred to in clause (b) of sub-section (4) of section 8: provided further that it shall not be necessary to furnish the declaration or the certificate referred to in clause (b) of the preceding proviso in respect of a subsequent sale of goods if,—(a) the sale or purchase of such goods is, under the sales tax law of the appropriate state, exempt from tax generally or is subject to tax generally at a rate which is lower than four per cent (whether called a tax or fee or by any other name); and(b) the dealer effecting such subsequent sale proves to the satisfaction of the authority referred to in the preceding proviso that such sale is of the nature referred to in clause (a) or clause (b) of this sub-section                                                                                                                                     registration of dealers7 (1)      (2a) where it appears necessary to the authority to whom an application is made under sub-section (1) or sub-section (2) so to do for the proper realisation of the tax payable under this act or for the proper custody and use of the forms referred to in clause (a) of the first proviso to sub-section (2) of section 6 or sub-section (1) of section 6a or clause (a) of sub-section (4) of section 8, he may, by an order in writing and for reasons to be recorded therein, impose as a condition for the issue of a certificate of registration a requirement that the dealer shall furnish in the prescribed manner and within such time as may be specified in the order such security as may be so specified, for all or any of the aforesaid purposes    8 (1) every dealer, who in the course of inter-state trade or commerce—(a) sells to the government any goods; orrates of tax on sales in the course of inter- state trade or commerce(b) sells to a registered dealer other than the government goods of the description referred to in sub-section (3), shall be liable to pay tax under this act, with effect from such date as may be notified by the central government in the official gazette for this purpose, which shall be two per cent of his turnover or at the rate applicable to the sale or purchase of such goods inside the appropriate state under the sales tax law of that state, or, as the case may be, under any enactment of that state imposing value added tax, whichever is lower:provided that the rate of tax payable under this sub-section by a dealer shall continue to be four per cent of his turnover, until the rate of two per cent takes effect under this subsection (2) the tax payable by any dealer on his turnover in so far as the turnover or any part thereof relates to the sale of goods in the course of inter-state trade or commerce not falling within sub-section (1)—(a) in the case of declared goods, shall be calculated at twice the rate applicable to the sale or purchase of such goods inside the appropriate state;(b) in the case of goods other than declared goods, shall be calculated at the rate of ten per cent or at the rate applicable to the sale or purchase of such goods inside the appropriate state, whichever is higher; and(c) in the case of goods, the sale or, as the case may be, the purchase of which is, under the sales tax law of the appropriate state, exempt from tax generally shall be nil, and for the purpose of making any such calculation under clause (a) or clause (b), any such dealer shall be deemed to be a dealer liable to pay tax under the sales tax law of the appropriate state, notwithstanding that he, in fact, may not be so liable under that lawexplanation—for the purposes of this sub-section, a sale or purchase of any goods shall not be deemed to be exempt from tax generally under the sales tax law of the appropriate state if under that law the sale or purchase of such goods is exempt only in specified circumstances or under specified conditions or the tax is levied on the sale or purchase of such goods at specified stages or otherwise than with reference to the turnover of the goods(3) the goods referred to in clause (b) of sub-section (1)—(b) are goods of the class or  classes specified in the certificate of registration of the registered dealer purchasing the goods as being intended for re-sale by him or subject to any rules made by the central government in this behalf, for use by him in the manufacture or processing of goods for sale or in the telecommunications network or in mining or in the generation or distribution of electricity or any other form of power;(c)  are containers or other materials specified in the certificate of registration of the registered dealer purchasing the goods, being containers or materials intended for being used for the packing of goods for sale;(d) are containers or other materials used for the packing of any goods or classes of goods specified in the certificate of registration referred to in clause (b) or for the packing of any containers or other materials specified in the certificate of registration referred to in clause (c) (4) the provisions of sub-section (1) shall not apply to any sale in the course of inter-state trade or commerce unless the dealer selling the goods furnishes to the prescribed authority in the prescribed manner—(a) a declaration duly filled and signed by the registered dealer to whom the goods are sold containing the prescribed particulars in a prescribed form obtained from the prescribed authority; or(b) if the goods are sold to the government, not being a registered dealer, a certificate in the prescribed form duly filled and signed by a duly authorised officer of the government: provided that the declaration referred to in clause (a) is furnished within the prescribed time or within such further time as that authority may, for sufficient cause, permit(5) notwithstanding anything contained in this section, the state government may, on the fulfilment of the requirements laid down in sub-section (4) by the dealer, if it is satisfied that it is necessary so to do in the public interest, by notification in the official gazette and subject to such conditions as may be specified therein, direct,—(a) that no tax under this act shall be payable by any dealer having his place of business in the state in respect of the sales by him, in the course of inter-state trade or commerce, to a registered dealer or the government  from any such place of business of any such goods or classes of goods as may be specified in the notification, or that the tax on such sales shall be calculated at such lower rates than those specified in sub-section (1) or sub-section (2) as may be mentioned in the notification;(b) that in respect of all sales of goods or sales of such classes of goods as may be specified in the notification, which are made, in the course of inter-state trade or commerce, to a registered dealer or the government by any dealer having his place of business in the state or by any class of such dealers as may be specified in the notification to any person or to such class of persons as may be specified in the notification no tax under this act shall be payable or the tax on such sales shall be calculated at such lower rates than those specified in sub-section (1) or sub-section(2) as may be mentioned in the notification     levy and collection of tax and penalties9 (1) the tax payable by any delaer under this act on sales of goods effected by him in the course of inter-state trade or commerce, whether such sales fall within clause (a) or clause (b)  of section 3, shall be levied by the government of india and the tax so levied shall be collected by that government in accordance with the provisions of sub-section (2), in the state from which the movement of the goods commenced:provided that, in the case of a sale of goods during their movement from one state to another, being a sale subsequent to the first sale in respect of the same goods and being also a sale which does not fall within sub-section (2) of section 6, the tax shall be levied and collected—(a) where such subsequent sale has been effected by a registered dealer, in the state from which the registered dealer obtained or, as the case may be, could have obtained, the form prescribed for the purposes of clause (a) of sub-section (4) of section 8 in connection with the purchase of such goods, and(b) where such subsequent sale been effected by an unregistered dealer in the state from which such subsequent sale has been effected     penalties10 if any person—(a) furnishes a certificate or declaration under sub-section (2) of section 6 or sub-section (1) of section 6a or sub-section (4)  or sub-section (8) of section 8, which he knows, or has reason to believe, to be false; or     10a (1)     imposition of penalty in lieu of prosecution(2) the penalty imposed upon any dealer under sub-section (1) shall be collected by the government of india in the manner provided in sub-section (2) of section 9—(a) in the case of an offence falling under clause (b) or clause (d) of section 10, in the state in which the person purchasing the goods obtained the form prescribed for the purposes of clause (a) of sub-section (4) of section 8 in connection with the purchase of such goods;      chapter  iv goods of special importance  in inter-state trade or commerce  14 it is hereby declared that the following goods are of special importance in inter-state trade of commerce:—    certain goodsto be of special importance in inter-state trade or commerce(ix) unmanufactured tobacco and tobacco refuse covered under sub-heading no240100, cigars and cheroots of tobacco covered under heading no 2402, cigarettes and cigarillos of tobacco covered under sub-heading nos 240311 and 240321, and other manufactured tobacco covered under sub-heading nos 240411, 240412, 240413, 240419, 240421, 240429, 240431, 240439, 240441, 240450 and 240460 of  the schedule to the central excise tariff act, 1985; (5 of 1986)    ———— extracts from the additional duties of excise (goods of special importance) act, 1957 (58 of 1957)    distribution of additional duties among states4 during each financial year, there shall be paid out of the consolidated fund of india to the states in accordance with the provisions of the second schedule such sums, representing a part of the net proceeds of the additional duties levied and collected during that financial year, as are specified in that schedule     the first shcedule [see section 3(1)] notes1 in this schedule, "tariff item", "heading", "sub-heading" and "chapter" mean respectively a tariff item, heading, sub-heading and chapter in the first schedule to the central excise tariff act, 1985 (5 of 1986) 2 the rules for the interpretation of the first schedule to the central excise tariff act, 1985 (5 of 1986), the section and chapter notes and the general explanatory notes of the first schedule shall, so far as may be, apply to the interpretation of this schedule| tariff item                                 | description of goods   | unit                                        | rate of   ||---------------------------------------------|------------------------|---------------------------------------------|-----------|| additional                                  |                        |                                             |           || duty                                        |                        |                                             |           || (1)                                         | (2)                    | (3)                                         | (4)       || 2401                                        |                        |                                             |           || unmanufactured tobacco; tobacco refuse      |                        |                                             |           || 2401 10                                     |                       |                                             |           || tobacco, not stemmed or stripped:           |                        |                                             |           || 2401 10 10                                  |                     | flue cured virginia tobacco                 | kg       || 2401 10 20                                  |                     | sun cured country (natu) tobacco            | kg       || 2401 10 30                                  |                     | sun cured virginia tobacco                  | kg       || 2401 10 40                                  |                     | burley tobacco                              | kg       || 2401 10 50                                  |                     | tobacco for manufacture of biris, not       | kg       || stemmed                                     |                        |                                             |           || 2401 10 60                                  |                     | tobacco for manufacture of                  | kg       || chewing tobacco                             |                        |                                             |           || 2401 10 70                                  |                     | tobacco for mnaufacture of                  | kg       || cigar and cheroot                           |                        |                                             |           || 2401 10 80                                  |                     | tobacco for manufacture of                  | kg       || hookah tobacco                              |                        |                                             |           || 2401 10 90                                  |                     | other                                       | kg       || 2401 20                                     |                       |                                             |           || tobacco, partly or wholly stemmed           |                        |                                             |           || or stripped:                                |                        |                                             |           || 2401 20 10                                  |                     | flue cured virginia tobacco                 | kg       || 2401 20 20                                  |                     | sun cured country (natu) tobacco            | kg       || 2401 20 30                                  |                     | sun cured virginia tobacco                  | kg       || 2401 20 40                                  |                     | burley tobacco                              | kg       || 2401 20 50                                  |                     | tobacco for manufacture of biris            | kg       || 2401 20 60                                  |                     | tobacco for manufacture of                  | kg       || chewing tobacco                             |                        |                                             |           || 2401 20 70                                  |                     | tobacco for manufacture of cigar            | kg       || and cheroot                                 |                        |                                             |           || 2401 20 80                                  |                     | tobacco for manufacture of                  | kg       || hookah tobacco                              |                        |                                             |           || 2401 20 90                                  |                     | other                                       | kg       || 2401 30 00                                  |                       | tobacco refuse                              | kg       || 2402                                        | c                      |                                             |           || igar                                        |                        |                                             |           || , c                                         |                        |                                             |           || heroots                                     |                        |                                             |           || c                                           |                        |                                             |           || igarillos                                   |                        |                                             |           ||                                             |                        |                                             |           || and                                         |                        |                                             |           || c                                           |                        |                                             |           || igarettes                                   |                        |                                             |           || ,                                           |                        |                                             |           || of                                          |                        |                                             |           || t                                           |                        |                                             |           || obacco                                      |                        |                                             |           ||                                             |                        |                                             |           || or                                          |                        |                                             |           ||                                             |                        |                                             |           || of                                          |                        |                                             |           || t                                           |                        |                                             |           || obacco                                      |                        |                                             |           || s                                           |                        |                                             |           || ubstitutes                                  |                        |                                             |           || 2402 10                                     |                       |                                             |           || cigars, cheroots and cigarillos, containing |                        |                                             |           || tobacco:                                    |                        |                                             |           || 2402 10 10                                  |                     | cigar and cheroots                          | tu        || 2402 10 20                                  |                     | cigarillos                                  | tu        || 2402 20                                     |                       |                                             |           || cigarettes, containing tobacco              |                        |                                             |           || 2402 20 10                                  |                     | other than filter cigarettes, of length not | tu        || exceeding 60 milimetres                     | thousand               |                                             |           ||                                                         |   (1)    |                                (2)         | (3)   |  (4)         ||---------------------------------------------------------|----------|--------------------------------------------|-------|--------------|| 2402 20 20                                              |       | other than filter cigarettes, of length    | tu    | rs 125 per  || exceeding 60 milimetres but not                         | thousand |                                            |       |              || exceeding 70 milimetres                                 |          |                                            |       |              || 2402 20 30                                              |       | filter cigarettes of length (including the | tu    | rs 185 per  || length of the filter, the length of filter              | thousand |                                            |       |              || being 11 milimetres or its actual length,whichever      |          |                                            |       |              || is more) not exceeding 70 milimetres                    |          |                                            |       |              || 2402 20 40                                              |       | filter cigarettes of length (including     | tu    | rs 300 per  || the length of the filter, the length of                 | thosuand |                                            |       |              || filter being 11 milimetres or its actual length,        |          |                                            |       |              || whichever is more) exceeding 70 milimetres but          |          |                                            |       |              || not exceeding 75 milimetres                             |          |                                            |       |              || 2402 20 50                                              |       | filter cigarettes of length                | tu    | rs 400 per  || (including the length                                   | thousand |                                            |       |              || of the filter, the length of filter being 11 milimetres |          |                                            |       |              || or its actual length, whichever is more) exceeding      |          |                                            |       |              || 75 milimetres but not exceeding 85 milimetres           |          |                                            |       |              || 2402 20 90                                              |       | other                                      | tu    | rs 495 per  || thousand                                                |          |                                            |       |              || 2402 90                                                 |         |                                            |       |              || other:                                                  |          |                                            |       |              || 2402 90 90                                              |       | other                                      | tu    | nil          || 2403                                                    |         | other manufactured tobacco                 |       |              || 2403 10 10                                              |       | hookah or gudaku tobacco                   | kg   | 18%          || 2403 10 20                                              |       | smoking mixture for pipes and cigarettes   | kg   | 75%          ||                                                      |          |                                            |       |              || biris:                                                  |          |                                            |       |              || 2403 10 31                                              |       | other than paper rolled biris,             | tu    | rs 140 per || manufactured without the aid of machine                 | thousand |                                            |       |              || 2403 10 39                                              |       | other                                      | tu    | rs 350 per || thousand                                                |          |                                            |       |              || 2403 10 90                                              |       | other                                      | kg    | 18%          || 2403 99                                                 |         |                                            |       |              || other                                                   |          |                                            |       |              || 2403 99 10                                              |       | chewing tobacco                            | kg   | 18%          || 2403 99 20                                              |       | preparations containing chewing tobacco    | kg   | 18%          || 2403 99 30                                              |       | zarda scented tobacco                      | kg   | 18%          || 2403 99 40                                              |       | snuff                                      | kg   | 18%          || 2403 99 50                                              |       | preparation containing snuff               | kg   | 18%          || 2403 99 70                                              |       | cut-tobacco                                | kg   |              || nil                                                     |          |                                            |       |              || 2403 99 90                                              |       | other                                      | kg   | 18%          | the second schedule (see section 4) distribution of additional duties during each of the financial years commencing on and after the 1st day of april, 1995, there shall be paid to each of the states specified in column (1) of the table below such percentage of the net proceeds of additional duties levied and collected during that financial year in respect of the goods described in column (3) of the first schedule, after deducting therefrom a sum equal to 2203 per cent of the said proceeds as being attributable to union territories, as is set out against it in column (2) of the said table: provided that if during that financial year there is levied and collected in any state a tax on the sale or purchase of the goods described in column (3) of the first schedule, or one or more of them by or under any law of that state, no sums shall be payable to that state under this paragraph in respect of that financial year, unless the central government by special order otherwise directs| state             | percentage   ||-------------------|--------------|| (1)               | (2)          || andhra pradesh    | 7820        || arunachal pradesh | 0104        || assam             | 2483        || bihar             | 7944        || goa               | 0232        || gujarat           | 5995        || haryana           | 2366        || himachal pradesh  | 0595        || jammu and kashmir | 0856        || karnataka         | 5744        || kerala            | 3740        || madhya pradesh    | 7236        || maharashtra       | 12027       || manipur           | 0197        || meghalaya         | 0188        || mizoram           | 0079        || nagaland          | 0137        || orissa            | 3345        || punjab            | 3422        || rajasthan         | 4873        || sikkim            | 0053        || tamil nadu        | 7689        || tripura           | 0286        || uttar pradesh     | 14573       || west bengal       | 8036        ||                  |             |———— a billfurther to amend the central sales tax act, 1956 and the additional duties of excise(goods of special importance) act, 1957————(shri p chidambaram, minister of finance)mgipmrnd—800ls—(s-5)—5032007 the taxation laws (amendment) bill, 2007 [to be/as introduced in lok sabha]1 page 3, line 3,-   for  "service,"  read   "commerce" 2 page 7, line 2,-  for   "tax,"  read  "tax act,"   3 page 10, line 12,-   for  "of"  read   "or" 4 page 10, line 21,-  for   "extracts" read  "extract" 5 page 13, line 4 from the bottom, under the heading 'percentage',-  for   "7689"  read  "7669"  new delhi; march 6, 2007______            phalguna 15, 1928 (saka) 