 the customs and central excises (amendment) bnl, 1963 a billto amend the customs act, 1962 and fvrth,8f' to a'fl\etl&d the ctrl e:rcibes 4nd salt act 19h be it enacted by parliament in the fourteenth year of ule repub1le of india &'1 follows:-1 (1) this act may be called the customs and ctmu'a1 exci811 smtt - (amendment) act, 1963 aa4   ~ (2) it shall come into force on such date as the central government may, by notification in the offtcial gazette, appoint z in section 12 of the customs act, 1962, for sub-aeetion (2) tl1e aldciicimaa& following sub-section shall be substituted, namely:-~a:;: ~ 10 "(2) the provisions of sub-section (1) shall apply in resped i •• of all goods belonging to government as they apply in respeet at goods not belonging to government" 3 in section 3 of the central excises and salt act, 1944, fof·· aub- mi  section (1a), the following sub-section shall be substituted name- ~ ~ ; ly:--i~ 1,5  (la) the provisions of sub-section (1) shall apply in r- peet of all excisable goods other than salt which are produced os manufactured in india by, or on behalf of, government, , ttiey apply in respect of loods which are not produee4 01 maau  factured by government"  statement of objects and reasonsclause (1) of article 289 of the constitution provides that "the property and income of a state shall be exempt froin union taxa  tien" clause (2) of that article, however, permits the union to impose taltes ill respect of a trade or business of any kind carried on by il state governm~nt, or any operations connected therewith 2 the question whether customs and excise duties though levied in respect~f goods, were taxation on property and as such when any goods were imported or exported, or produced or manufactured, by state govel"nments, they enjoyed exemption under clause (1) of article 289 of the constitution, was examined from the legal and conswutional points of view and the government of india were advised that such duties were not taxation on property it was, therefore, proposed that provision be made in the customs act and the central excises and salt act for the levy of import duty and excise duty on all goods imported or exported, or produced or manu· taeitured, by state governments, whether such import, export, production or manufacture was in connection with any trade or busi-~esscarried on by the state governments or not 3 in view of the importance of the matter, and the objections raised by the state governments to the proposed provisions, a special reference was made by the president to the supreme court for its opinion under article 143 of the constitution on the interpretation of article 289 of the constitution the supreme court confirmed that the prnposed provisions would bc' eonsistent with the provisions of article 289 4 thtt legal position having been clarified, it is proposed to amend the customs act, 1962 and the central excises and salt act, 1944, so as to provide that duties of customs and excise will be leviable on all goods imported or exported, or produced or manufactured by state governments hence this bill morarji desai niw dliaii; the 1st august, 1963 1-, ,''',:''' ,~-  274 of the constitution of india{copy of letter no 2/9/61cus vi, dated the 8th august, 1m3 from shri morarji desai, minister of finance to the secretary,lok sabha] the president having been informed of the subject matter of the proposed bill recommends under articles 117(1), 117(3) and 274(1) of the constitution of india the introduction and consideration of the bill clauses 2 and 3 of the bill would have the effeet of render-in, liable to customs and central excise duties respectively certain goodl which heretofore were free of duty to that extent it would add to the work of the customs and central excise departments no addi-onal expenditure is likely on this account  extractlii nom tim constitution of india  •• •• 'ii •• 143 (1) if nt any time it sppears to the president that a question power of of law or fact has arisen, or is likely to arise, which is of such a prea:1e~ to nature and of such public importance that it is expedient to obtain =: b::~ the opinion (if the suprem(~ court upon it, he may refer the question to that court for consideration and the court may, after such hear ing as it thinks fit report to the president its opinion thereon (2) the president may, notwithstanding anything in the proviso to article 13], refer & dispute of the kind mentioned in the said proviso to the supr€me court for opinion and the supreme court shall, after such hearine, as it thinks fit, report to the president its opinio!l thereon 'ii •• - • •• 281 (1) the property nnd income of a state shall be exempt from bxcmpt:od union taxation ofl~perty ad income (2) nothing in clause (1) shall prevent the union from imposing, of i s~ate or authorising the imposition of, any tax to such extent, if any, al ~=~~on parliament may by law provide in respect of a trade or business of any kind carried on by, or on behalf of, the government of a state, or any operations connected there~th, or any property used or occupied for the purposes of such trade or business, or any income accruing or arising in connection therewith (3) nothing in cl:lu"le (2) shall apply to any trade or business, or to any cia !is of trade or business, which :parliament may by law declare to be incidental to the ardimry functions of government  •• •• •• •• extract prom thb customs aerr, 1962 (52 01' 1962)  •• ••  •• chapter v  levy 01', and exemption prom, customs dutiils12 (1) except as otherwise provided in this act, or any other law dutiable for the time being in force, duties of customs shall be levied at such ,oodl 3' or 1934 rates as may be specified under the indian tariff act, 1934, or any other law for the time being in force, on goods imported into, or exported from india (2) the pruvisions of sub-section (1) shall apply in respect of-(a) all ~oods belonging to the central government; and (b) all goods belonging to the government of a state and used for the purposes of a trade or business of any kind carried on by, ot on behalf of, that government, or of any operations eonnec~ with such trade or business; as they apply in respect ,of goods not belonging to any government •• •• •• - • extrac'!' from the central excises and salt aer, 1944 (1 of 1944)  •• •• •• - • dut'olpecified in the first schedule to be levied 3 (1) there bhall be levied and collected in such manner as may be prescribed duties of excise on all excisable goods other than salt which are produced or manufactured in india, and a duty on salt manuf-aetured in, or imported by land into, any part of india as,and at the rates, set forth in the first schedule (la) the provisions of sub-section (1) shall apply in respect of all ~xcisab]e goods other than salt which are produced or manufactured in india by, or on behalf of, the government of a part a state or a part b state and used for the purposes of a trade or business of any kind carried on by, or on behalf of, that government or of any operations connect~ with such trade or business as they apply in respect of goods which are not produced or manufactured by any government; (2) the central government m'ay, by notification in the otftcial gazette, fix, for the purpose of l~ing the said duties, tariff values of any articles enumerated, either specifically or under general headings, in the first schedule as chaz:geable with duty ad valorem and may alter any tariff values for the time being in force; (3) different tariff values may be fixed for different classes or descriptions of th~ same article •• •• - • - a bnj to amend the customs act, 1962 and further to amend the central excises and salt act, 1944 (shri morarji desai, mi"i,ter of fi"ance) 