 the additional duties of'excise (goods of, special importa'nce) bill, 19~7,(as introduced in lok sabra)  the additional duties of excise (goods of special importance) bill, 1957 (as introduced in lok sabra) a bill~o provide for the levy and couection 01 additional duties of excise on certain goods and for the, distribution 01 a part of the net proce6ds thereof among the states and to declare those goods to be of special importance in inter-state trade or commerce be it enacted by parliament in the eighth year of the republic gf india as follows:-1 (1) this act may be called the additional duties of excise shon tide (goods of special importance) act, 1957 and eztedt s (2) it extends to the whole of india i in this· act-de8nitloa  (a) "additional duties" means the duties of excise levied anel colle'cted under sub-section (1) of section 3; (b) "state" does not include a union territory; 10 (c) the words and expressions "sugar", "tobacco", "cotton fabrics", "rayon or artificial silk fabrics" and "woollen fabrics" shall have the meanings respectively assigned to them in items nos, 8, 9, 12, 12a and 12b of the first schedule to the central excises and salt act, 1944 i of 1944 is 3 (1) there shall be levied and collected in respect of the follow- re,  anel  i tob tto f b  rt'ft ial couoctlod of lag goods, name y, sugar, aeeo, co n a ncs, rayon or ale additional  silk fabrics and woollen fabrics produced or manufactured in india c:lutlel and on all such goods lying in stock within the precincts of any factory, warehouse or other premises where the said goods were manufactured, stored or produced, or in any premises appurtenant thereto, duties of excise at the rate or rates specified in the fii'it schedule to this act , i of 1944· (2) the duties of excise referred to in sub-section (1) in respect of the goods specified therein shall be in addition to the duties of excise chargeable on such goods under the central excises and salt act, 1944, or any other law for the time being in force (3) the provisions of the central excises and salt act, 1944, and 10 the rules made· thereunder, including those relating to refunds and exemptions from duty, shall, so far as may be, apply in relation 10 the levy and collection of the additional duties as they apply in relation to the levy and collection of the duties of exci&e on the foods specified in sub-section (1) is distribution co duridg each fldaddai year, there bbau be paid out of the cod· d~ti!d=z: solidated fund of india to the states in accordance with the states provlsloas of the seeond schedule 81idt i1idl8, represeotldc a part of the del prooeeds of the addltlodbl dttea levied and coueeted darid&' that idanclal year, as are speci4ed in uaat schedule 20 bxpenditure 5 any ezpeaditue udder the provlsl0d8 of thia act ihaii be ~~ be ~ha~:; expenditure charged on the consolidated fund of india conolidated fund of india p:lwer to 6 (1) the central government may, by notification in the official make rules gazette, make rules providing for the time at which, and the manner in which any payments under the provisions of this act are to be 2s made, fol the making of adjustments between one financial year and another and for any other incidental or ancillary matters (2) all rules made under this section shall, as soon as may be after they are made, be laid for not less than thirty days before each house of parliament and shall be subject to such modifications 30 as parliament may make during the session in which they are so laid or the session immediately following declaration 7 it is hereby declared that the following goods namely, sugar, of certain tobacco, cotton fabrics, rayon or artificial silk fabrics and woollen goods to be f b  f· i· rt  t -s of special a ncs are 0 specia lmpo ance in in er tate trade or commerce 3s :::~~:te and every sales tax law of a state shall, in so far as it imposes or trade or authorises the imposition of a tax on the sale or purchase of the commerce declared goods, be  subject as from the 1st day of april, 1958, to the restricti9ds and conditions specified in section 15 01 the central sales tax act, 1956  declaration under the provisional collection 01' taxes act, 1931 (16 of 1931) it is hereby declared that it is expedient in the public interest that the provisions of clause 3 of the bill shall have immediate effect , under the provisional c~llection of taxes act, 1931  16 of 1'31•  the first schedule [see section 3(1)]| description,                | of                                      ||------------------------------|-----------------------------------------|| loods                        |                                         || rate                         | of                                      || item                         | no                                     || in                           |                                         || the                          |                                         || 10                           | fint                                    || schedule                     |                                         || to                           | the                                     || central                      |                                         || bxcises                      |                                         || is                           |                                         || and                          | salt                                    || act, 1944                    |                                         || (i)                          |                                         || l3)                          |                                         || 8                           | sugar                                   || three                        |                                         || rupees                       | and                                     || thirty-one naye              |                                         || paiee                        |                                         || per                          |                                         || cwt                         |                                         || 9                           | tobacco-                                || per                          | lb                                     || i                           | urtmanu!aaurld                          || tolla«o-                     |                                         || (i)                          |                                         || if ftue                      | cured                                   || in                           |                                         || the                          | manufacture                             || cigarettes                   |                                         || containing-                  |                                         || nil                         |                                         || 25                           |                                         || (;) more                     |                                         || than                         |                                         || 60                           |                                         || per                          | cent weight                            || tobacco                     |                                         || (if)                         |                                         || more                         |                                         || than                         |                                         || 40                           |                                         || pc:r                         |                                         || cent                        | but                                     || than                         |                                         || 60                           |                                         || nil                         |                                         || per                          |                                         || cent wclght                 | of                                      || (m)                          |                                         || more than                    |                                         || 20                           |                                         || per                          | cent                                   || 40                           |                                         || per                          |                                         || cent weight                 | of                                      || nil                         |                                         || 30                           |                                         || (iv)                         |                                         || 20                           |                                         || per                          | cent or less                           || thar                         |                                         || 20                           |                                         || per                          |                                         || cent weight                 |                                         || nil                         |                                         || of                           | imported tobacco                       || (v)                          |                                         || no imported tobacco         |                                         || nil                         |                                         || (2)                          |                                         || if                           |                                         || flue cured                   | and                                     || - smoking mixtures for pipes |                                         || and                          | cigarettes                             || 35                           |                                         || (3)                          |                                         || if                           | flue cured and not otherwise specified || paiee                       |                                         || (4)                          | if                                      || nu                          |                                         || facture                      | of                                      || (ii)                         |                                         || cigarettes                   | or                                      || (b)                          |                                         || smoking                      |                                         || mixtures                     |                                         || for pipes                    | and                                     || -------                      |                                         || ----                        |                                         |(i) -_------------------(s) if not sue aued and not lctuilly uled for the manufacture ~ (a) ciprettei or (6) unokini misturci for pipes and c:iprena-| ()     | stem       | oftobaeco    ||---------|-------------|--------------|| larpr   |             |              || than    |             |              || 1/4"and | stems       |              || of      | tobacco not |              || iarjer  |             |              || than    |             |              || 1/16"   | in          | size        || three   | nayc puae  |              |(ia) dust of tobacco (iia) j!'il1ule ("rawa') of tobacco not jaraer _ 1/16' square in size (iv) toblcco cured in whole leaf form and packed or ded in bundles, hadb or bunchee or in the form of twiltl or c:oila twenty naye pule (6) if other than flue cured and not othcrwiae lpecified (7) if ueed for agric:ultural purposes (8) atalb nil is one naya pai   ii mjp,ulaaurtd tobacco-per hundre4 (i) cigan and cheroots of which the value-three rupees two rupees and fifty 20 nayc paiae two rupees one rupee naye paiae and 8fty z5 one rupee pifty nayc' paise twenty-five naye paiae 30 () excceda ri 30 - hundred (ii) c:xceeda ri 2s - hundred but does not exceed rs 30 - hundred (iii) exceed, rs 20 - hundred but does not exceed ri 25 - hundred, ('v),cxcaeda ri is - hundred but doea dot exceed ri 20 - hundred (v) exceed rs 10 - hundred but doe not exceed ri is - hundred (m) exceedl ri s - hundred but does not exceed ri 10 - hundred (via) exceeds ri 2-8-0 a hundred but doea not exceed ri s - hundred (oiia) exceeds rs 1-44 a hundred but does not exceed ri 2-8-0 - hundred ten naye paise (''') exceeds 14 iuldu - hundred but duet not pive naye paise exceed ri 1-4-0 a hundred 35 (2) cigarettes of which the value-| per             | thousand    ||-----------------|--------------|| () exceeds rs |              || so              | -            || thousand       |              || eight rupees    |              || and             |              || iixty           |              || naye            |              || paile          | '            || seven           |              || rupees and      |              || sixty           |              || i'ilye          |              || paiae          |              || ~               |              || pour rupees and |              || twenty          |              || l'iaye          | paise       || three           |              || rupee          |              || and             |              || etptj           |              || naye pule      |              || two             |              || ru~             |              || and             |              || '1ixtj'         |              || 45              |              || naye pille     |              || two             | rupees       || and             |              || twentj          |              || naye palle     |              || (i)            |              || exceeda         |              || ri             |              || 3s              | -            || thoullldd       | but          || exceed          |              || ri             |              || so              | -            || thousand       |              || (iii)           |              || exceed         |              || rs 30 a        |              || thousand        | but          || exceed          |              || ri             |              || 3s              |              || a               |              || thousand       |              || (iv)            |              || aceed          |              || ri             |              || 2s              | - thousand,  || doca            |              || "ot             |              || exceed          |              || rii             |              || 30              |              || i               |              || thousand       |             || (v)             |              || exceed ri     |              || 20              | -            || thousand        | but          || exceed          |              || ri             |              || 25             |              || thousand       |              || (va)            | exceed      || ri            |              || is              |              || i               |              || thousand        | but          || exceed          |              || ri             |              || 20              | -            || thouaand       |              |__---_  ,__,__-----------~) exceeds ri 10 a thouaandbut does dot oae rupee 80d ted da,e exceed ri is a thousand paise (viit) exceed, rs 7-8-0 a thousand but does dot sixty naye paise exceed ri 10 a thouaand forty naye paise (u) does not exceed ri 7-8-0 a thouaand sixty naye paise (3) biril in the m8o\uactilre of which 80y proceal hal been conducted with the aid of machines operated with or without the aid of power la - cotion fabrics-10 (i) cotton f'abria, luperflne | (a) cotton    | fabria,    | fine     ||---------------|------------|----------|| ~            |            |          || (3) cotton    | fabria,    | medi1ldl || (4) cotton    | fabria,    | coarse   || thirteen      |            |          || naye          |            |          || pailo         | per        |          || aquan         |            |          || yard         | '          |          || bieht         |            |          || naye paise    |            |          || per           |            |          || iquaxc        |            |          || yard         |            |          || four naye     | paise      |          || per           |            |          || square yard  |            |          || thne          | nayc       |          || paise         |            |          || per           |            |          || square        |            |          || yard         |            |          |i~ rayon or artificial silk fabrics | three    ||----------|| paise    || per      || square   || yard    || five     || per      || cent    || tid      || nimftt  |jab l woollen fabrics; ---------- the second schedule (see section 4) part i distribution 0/ additional dutia on 6ufi0r2s 1 in this part,-(ct) "net proceeds", as respects any firuulcial year, means the net proceeds of the additional duties in respect of sugar levied and collected during that financial year; (b) "table" means the table at the end of this part 30 2 during each of the financial years commencing en or after the 1st april, 1958, there shall be paid-(0) to the state of jammu and kashmir a sum equal to 125 per cent of the net proceeds; and (b) to each of the states specified in the fll'l;t column ()f the table-(i) a sum equal to such percentage of one-fourth of the net proceeds as is specified against that stat~ in the second column of the table; 5 (ii) a sum equal to the di1ference between the sum specified against that state in the thirci column of the' table and the sum payable to that state under sub-clause (i); and (iii) if the total of the sudls 'payable to all the states under the preceding provisions of this paragraph is less 10 than 99 per cent of the net proceeds by any 8dl9unt, a further sum equal to such percentage of that amount as is specified against that state in the fourth column of the table: provided that it during that financial year there is levied and is collected in any state specified in the table a tax on the sale or purchase of sugar by or under any law of that state, no sums shall be payable to that state under sub-clause (ii) or sub-clause (iii) of clause (b) in respect of that financial year, unless the central go"-ernment by special order otherwise directs 20 3, in respect of the financial year ending on the 31st march, 1958, th-e provisions of paragraph 2 (excluding the proviso) shall apply for the distribution of a part of the net proceeds, subject to the mudiflcation that each of the sums specified in the third column cf the table shall be deemed to have been replaced by one-fourth of uat sum 25 1 2 3 4 (rupees in 1itbi) aodhra pradesh 9'38 40 6,65 3'46 auam is 2'55 30 bihar 10'57 30 8, bombay 12'x7 245 20'17 3'84 kania 20 3'03 m8dby pracleah 7'46 40 7·67 7'56 madra 60 7'43 35 6's2 mysore 2s 5'13 ori  ' 4'46 20 2'''7 (rupees in lakha) 5 punjab, 4'59 50 7'21 rajasthan , 4'71 25 4'81 uttar pradesh 15'94 112 15'63 weat benpl , 7'59 36 8'65  part ii distribution of additional duties on tobacco'\ 4, the provisions of paragraphs 2 and 3 shall apply for the distribution of a part of the net proceeds of the additional duties on 10 tobacco levied and collected during each financial year as they apply for the distribution of a part of the net proceeds of the additional duties on sugar, subject to the modification that the references therein 'to the table shall be construed as references to the table below tabi&  15i 2 3 4 (rupees in lakhs) andhra pradesh 9'38 75 10'47 assam 3'46 30 2'98 bihar io's7 20 8'90  bombay, 12'17 lis 17'41 kerala ' 3'84 37 3'43 madhya pradesh 7'46 32 7'10 madras, 7's6 s7 9's3 mysore, 6's2 27 s's8 orissa , 4'46 is 3'21 punjab 4's9 30 4'36 rajasthan ' 4'71 is 3'59 uttar pradesh 15'94 63 16'13 welt bengal , 7'59 40 7'31  part iii 3035 distributton of additional dutie on textileb 5, in this part,-"fo , (a) "net proceeds", as respects any financial year, meant the net proceeds of the additional duties in respect of cotton fabrics, rayon or artificial silk fabrics and woollen fabrics levied and collected d1:lring that financial year; (b) "table" means the table at the end of this part, • durine' each of the financial years commercinl or or after the lit april, 1958, there shall be paid-(a) to the state of jammu andl kashmir a sum equal to 1·25 per cent of the 'net proceeds; (b) to each of the states specified in the first column of the s table-(i) such sum as is specified against that state in the second column of the table; and (ii) if the total of the sums payable to all the states under the preceding provisions of this paragraph is less than 99 per 10 cent of the net proceeds by any amount, a f~rther sum equal to such percentage of that amount as is specified again!'!t that state in the third column of the table: provided that if during that financial year, there is levied and collected in any state specified in the table 8 tax on the 'sale or is purchase of cotton fabrics, rayon or artificial silk fabrics or woollen fabrics by or under any law of that state, no sums shall be payable to that state under clause (b) in respect of that financial year, unless the central government by special order otherwise directs 7 in respect of the financial year ending on the 31st march, 1958, zo the provisions of paragraph 2 (excluding the proviso) shall apply for the distribution of a part of the net proceeds, subject to the tnodiftca~ tion that each of the sums specified in the second column of the table shall be deemed to have b~en replaced by one-fourth of that sum 2s i 2 3 (rupeea in 1akhj) andhra pradesh 120 1'31 aamlll 40 2'72 bihar 10 11'19 30 bombay 600 16'46 keraja 38 3'10 madhya pradesh 83 6'91 mtdru 168  1'26 mysore 48 4'98 3s ori  so 3'32 punjab 9s s's6 rljut:hm so 4'36 uttar pradesh 400 18'19 \vest beripl zc4 8'si :0  statement of objects and reasonsthe object of the bill is to impose additional duties of excise m replacement of the sales taxes levied by the union and the states on sugar, tobacco and mill made textiles and to distribute the net proceeds of these taxes, except the proceeds attributable to union territories, to the states the distribution of the proceeds 'of the additional duties broadly follows the pattern recommended by the second finance commission provision has been made that the states which levy a tax on the sale or purchase of these commodities after the 1st april, 1958 do not participate in the distribution of the net proceeds provision is also being made in the bill for including these three goods in the category of goodi declared to be of special importance in inter-state trade or commerce so t1:1at, following the imposition of' uniform duties of excise on them, the rates of sales tax if levied by any state are subject from 1st april, 1958 to the restrictions in section 15 of the central sales tax act, 1956 t t krishnamachari naw delhi; the 9th december, 1957 clatl8e 3-this clause provides for the levy of additional duties on sugar, tobacco, cotton fabrics, rayon or artificial silk fabrics and woollen fabrics' sub-clause (2) makes it clear that these duties shall be in addition to the duties of excise chargeable on these goods under the central excises and salt act, 1944, or any other law for the time being in force clatl8e 4-this clause provides for the payment out of the conlolidated fund of india of sums equivalent to a part of the net proceeds of the additional duties, the details of distribution being given in the second schedule clatl8e 5-this clause makes the amount payable to the states charged expenditure on the consolidated fund of india clause 6-this clause empowers the central government to make rules for purposes of implementing the proviiilons of the act clause 7-this clause declares the goods subject to the additional duties of excise as of special importance in inter-state trade or commerce and it further provides that any law ot a state imposing sales tax on these commoditie~ shall be subject to the restrictions and conditions specified in section 15 of the central sales tax act, 1956, as from the 1st april, 1958 the first sc~'ule-this schedule sets out the rates of additional duties the second schedule-this schedule sets out the buls of distribution of the additional duties of excise ninety-nine per cent of the net proceeds of the additional duties will normally be distributed among the states out of the net proceeds of the additional duties on sugar and tobacco, a sum equal to 25 per cent of the net proceeds will be distributed among the states except the state of jammu and kashmir like the basic duties of excise on these goo~ the balance will be distributed in accordance with the scheme recommended by the finance commission, the amount of guaranteed income of ·each state being reduced by the amount payable to it out of the distribution of 25 per cent of the net proceeds the distributable net proceeds of the additional dutie of millmade textiles will be distributed among the states on the basis recommended by the finance commission it has also been provided i;llat if any state levies a tax on the sale or purchase of any of these commodities after the 1st april, 1958, it should not participate in the distribution of the proceeds of additional duties in respect of that commodity (except in so far as it relates to the distribution of 25 per cent of the net prooeeds of additional duties on sugar and tobacco), unless the central government by special order otherwise directs the levy of the additional duties will not involve any significant increase in administrative expenditure, but as 99 per cent of the net proceeds of the additional duties have to be distributed among the states, this would involve a payment of about rs 11 crores in the current year and of about rs 38 crores in - full year from the consolidated fund of india to the states memorandum regarding delegated legislation clause 6 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, the making of adjustments between one financial year and another and other incidental and aneillary matters the' ma~!'s in respect of which rules may be made are of a routine and administrative character moreover, the rules to be made shall be :lubject to the scrutiny of parliament the delegation of legislative power is thu$ of a normal character  billto provide for the levy and collection of additional duties of excise on certain goods and for the distribution of a part of the net proceeds thereof among the states and to declare those goods to be of special importance in inter-state trade or commerce the president has, in pursuance of clauses (i) and (3) of article ii7 anq clause (i) of article 274 of the constitution of india, recommended to the lok sabha, the introduction and consideration of the bill m n kaul, secretary ;  (shri t t krishnamachari, minister of finance) 