constituent assembly of india debates (proceedings)- volume vii

p = the population of the State concerned;
P = the population of British India and all the participating States.
Some States have not come into the scheme and the tobacco of such States on entry into British
India is confiscated and released on payment of fine and penalty. Although section 5 of the Central
Excises and Salt Act 1944 empowers us to impose customs duty equivalent to the excise duty, the
provisions of this section have not been involved because it has been possible to realise an amount
equivalent to the excise duty on State Tobacco under rule 32 of the Central Excise Rules by means of
confiscation. Hyderabad has not accepted the formula and does not share the revenue with the
Government of India although it has legislated on the lines of British India. No restrictions have been
imposed on the entry of Hyderabad Tobacco into British India.
To facilitate movement of tobacco from and to the States, a special procedure for the movement in
bond has been devised. Under this procedure the duty is realised at destination and credited to a
Suspense account. The amounts. realised on the State tobacco is at the end of the year credited to the
State and is taken into account in the State's realisations for purposes of the formula. The revenue
contributable by the States during the years 1943-44 and 1944-45 were Rs. 51,38,809 and Rs.
1,48,07,552 respectively.
8. Vegetable Product. - The formula is the same as in respect of tobacco. The only States
concerned at present are Mysore and Cochin although the other States were asked to legislate and have
legislated on the matter. Of the two States, namely, Cochin and My sore, Cochin's contribution to the
Central Revenues during the year 1943-44 and 1944-45 was Rs. 76,160 and Rs. 41,212 respectively.
The Mysore State has nothing to pay under the formula.
9. Tea, Coffee and Betel Nuts. - The States concerned are: -
Tea: - Mysore, Travancore, Cochin, Tripura, Mandi;
Coffee: - Mysore, Travancore, Cochin;
Betel Nuts: - Mysore, Travancore, Cochin, Tripura, Sawantwadi and Janjira. The rates of duty
imposed by Travancore are as follows: -
Betel Nut . . . . . . As. 1/6 per 1b.
Coffee . . . . . . As.-/6 ,, ,,
Tea . . . . . . As.1/9 ,, ,,
The same formula as in respect of tobacco has been adopted in respect of these excises also,
although the Board's intention was that 'P' in respect of these excises should denote the population of all
India and not limited to participating States and British India as in the case of tobacco. Mysore and
Travancore, the two important States, have been clamouring for a revision of the formula. In the case of
Travancore the following revised formula has been offered: -
P
A= -----
T