constituent assembly of india debates (proceedings)- volume vii

198. Salt duties and excise duties. - (1) No duties on salt shall be levied by the Federation.
(2) Federal duties of excise shall be levied and collected by the Federation, but , if an Act of the
Federal Parliament so provides, there shall be paid out of the revenues of the Federation to the units to
which the Act imposing the duty extends, sums equivalent to the whole or any part of the net proceeds
of that duty, and those sums shall be distributed among the units in accordance with such principles of
distribution as may be prescribed:
Provided that fifty per cent or such higher percentage as may be prescribed, of the net proceeds in
any financial year of the excise duty on tobacco, except in so far as those proceeds represent proceeds
attributable to Chief Commissioners' Provinces, shall not form part of the revenues of the Federation but
shall be assigned to the units within which that duty is leviable in that year, and shall be distributed
among the units in such manner as may be prescribed.
198-A. Taxes not enumerated in any of the lists in the Ninth Schedule. - If any tax not
mentioned in any of the lists in the Ninth Schedule to this Constitution is imposed by Act of the Federal
Parliament by virtue of entry 90 of the Federal Legislative List, such tax shall be levied and collected by
the Federation but a prescribed percentage of the net proceeds in any financial year of any such tax,
except in so far as those proceeds represent proceeds attributable to Chief Commissioners' Provinces,
shall not form part of the revenues of the Federation, but shall be assigned to the units within which that
tax is leviable in that year, and shall be distributed among the units in accordance with such principles of
distribution as may be prescribed.
198-B. Grants in lieu of jute export duty. - Until the abolition of the export duty levied by the
Federation on jute or jute products or the expiration of ten years from the commencement of this
Constitution, whichever is earlier, there shall be charged on the revenues of the Federation in each year
as grants-in-aid of the revenues of the Provinces mentioned below the sums respectively specified
against those Provinces:
Province Sum
West Bengal 100 lakhs of rupees.
Bihar 17 lakhs of rupees.
Assam 15 lakhs of rupees.
Orissa 3 lakhs of rupees.
199. Grants from Federation to certain units. - Such sums as the President may, on the
recommendation of the Finance Commission, by order fix shall be charged on the revenues of the
Federation in each year as grants-in-aid of the revenues of such units as the President may on such
recommendation determine to be in need of assistance, and different sums may be fixed for different
units:
Provided that there shall be charged on the revenues of the Federation in each year as grants-in-aid
of the revenues of the provinces of Assam and Orison the sums of thirty and forty lakhs of rupees
respectively or such higher sums as the president may on the recommendation of the Finance
commission fix in respect of either of these Provinces:
Provided further that there shall be paid out of the revenues of the Federation as grants-in-aid of the
revenues of a Province such capital and recurring sums as may be necessary to enable that Province to