The Union Duties of Excise (Distribution) Act, 1979
# THE UNION DUTIES OF EXCISE (DISTRIBUTION) ACT, 1979
 _______

 ARRANGEMENT OF SECTIONS
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SECTIONS


1. Short title and commencement.
2. Definition.
3. Payment to States of sums equivalent to a part of the net proceeds of Union duties of excise and

distribution of sums among them.

4. Payment to be charged on the Consolidated Fund of India.
5. Power to make rules.
6. Repeal.

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# THE UNION DUTIES OF EXCISE (DISTRIBUTION) ACT, 1979


# ACT NO. 24 OF 1979



[20th May, 1979.]

# An Act to provide for the payment out of the Consolidated Fund of India of sums equivalent to a
 part of the net proceeds of certain Union duties of excise 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 principles recommended by the Finance Commission in its[1][report dated the 25th day of November, 1994].


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


**1. Short title and commencement.—(1) This Act may be called the Union Duties of Excise**

(Distribution) Act, 1979.

(2) It shall be deemed to have come into force on the 1st day of April, 1979.

2[2. Definition.—In this Act, the expression “distributable Union duties of excise” means 3[forty
seven and a half per cent.] of the net proceeds of Union duties of excise, levied and collected under the
Central Excises and Salt Act, 1944 (1 of 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.

4[3.Payment to States of sums equivalent to a part of the net proceeds of Union duties of excise

**and distribution of sums among them.—During the financial year commencing on the 1stday of**
April, 1995,and each of the four succeeding financial years, there shall be paid, out of the Consolidated
Fund of India, to the States, sums equivalent to the distributable Union duties of excise levied and
collected in that year and,—

(a)sixteen-nineteenth of the sums so payable during each such financial year shall be distributed to

each of the States specified in column (1)of Table I below in such percentage as is set out against it in
column (2)thereof; and

(b)three-nineteenth of the sums so payable during each such financial year shallbe distributed to each

of the States specified in column (1)of Table II below in such percentage as is set out against it in column
(2)thereof with respect to that financial year:—

TABLEI

State Percentage

(1) (2)

Andhra Pradesh . . . . . . . . . 8.465

Arunachal Pradesh . . . . . . . . . 0.170

Assam . . . . . . . . . 2.784

Bihar . . . . . . . . . 12.861

Goa . . . . . . . . . 0.180

Gujarat . . . . . . . . . 4.046

1. Subs. by Act 31 of 1995, s. 2, for “second report dated the 18th day of December, 1989” (w.e.f. 1-4-1995).
2. Subs. by Act 17 of 1989, s. 3, for sections 2 and 3 (w.e.f. 1-4-1989).
3. Subs. by Act 31 of 1995, s. 3, for “forty-five per cent.” (w.e.f. 1-4-1995).
4. Subs. by s. 4, ibid., for section 3 (w.e.f. 1-4-1995).

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(1) (2)

Haryana . . . . . . . . . 1.238

Himachal Pradesh . . . . . . . . . 0.704

Jammu and Kashmir . . . . . . . . . 1.097

Karnataka . . . . . . . . . 5.339

Kerala . . . . . . . . . 3.875

Madhya Pradesh . . . . . . . . . 8.290

Maharashtra . . . . . . . . . 6.126

Manipur . . . . . . . . . 0.282

Meghalaya . . . . . . . . . 0.283

Mizoram . . . . . . . . . 0.149

Nagaland . . . . . . . . . 0.181

Orissa . . . . . . . . . 4.495

Punjab . . . . . . . . . 1.461

Rajasthan . . . . . . . . . 5.551

Sikkim . . . . . . . . . 0.126

Tamil Nadu . . . . . . . . . 6.637

Tripura . . . . . . . . . 0.378

Uttar Pradesh . . . . . . . . . 17.811

West Bengal . . . . . . . . . 7.471

TABLEII

State Financial year and percentage

(1) (2)

1995-96 1996-97 1997-98 1998-99 1999-2000

Andhra Pradesh 12.069 7.988 0.000 0.000 0.000

Arunachal Pradesh 3.410 4.300 5.871 6.224 6.667

Assam 8.543 9.836 11.849 10.748 9.290

Bihar 6.434 2.965 0.000 0.000 0.000

Goa 0.973 1.058 1.161 0.917 0.604

Himachal Pradesh 8.816 10.744 14.057 14.230 14.338

Jammu and Kashmir 13.366 16.491 21.985 22.741 23.700

Manipur 3.930 4.891 6.602 6.917 7.348

Meghalaya 3.590 4.403 5.815 5.994 6.130

Mizoram 3.676 4.628 6.278 6.784 7.074

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(1) (2)

Nagaland 5.818 7.417 10.247 11.072 12.025

Orissa 4.815 5.248 4.934 2.773 0.680

Rajasthan 0.835 0.000 0.000 0.000 0.000

Sikkim 1.199 1.473 1.938 1.982 2.055

Tripura 5.465 6.807 9.263 9.618 10.089

Uttar Pradesh 17.061 11.751 0.000 0.000 0.000.]]

**4. Payment to be charged on the Consolidated Fund of India.—The expenditure on the payments**

in pursuance of section 3 shall be charged on the Consolidated Fund of India.

**5. Power to make rules.—(1) The Central Government may, by notification in the Official Gazette,**

make rules providing for the time at which and the manner in which, any payments under this Act are to
be made, for the making of adjustments between one financial year andanother and for
any other incidental 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 session or the successive sessions aforesaid, 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 of
annulment shall be without prejudice to the validity of anything previously done under that rule.

**6. Repeal.—The Union Duties of Excise (Distribution) Act, 1962 (3 of 1962), shall, as from the**

1st day of April, 1979 stand repealed.

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