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WP8572.doc 47 Mr. Sridharan has then contended that the new alternate method of devolution recommended by the Tenth Finance Commission to be effective from 1st April, 1996, is more beneficial to the State. The State Government will get 3% of all Central taxes in lieu of the share towards additional duties of excise. This is apart from 26% of the Central taxes being State's share in Central taxes. Mr. Sridharan then invites our attention to Articles 270, 271 and paragraph 13 of the Report of the Tenth Finance Commission to urge that this would demonstrate that the Finance Commission recommended 25% of the tax collected, including the additional duties of central excise to be distributed to the States as per their share of Central taxes. In addition, the Finance Commission recommended 3% of the total to be distributed to the States as per their share of the additional duties of excise. Mr. Sridharan submits that the Central Government accepted the recommendations of the Tenth Finance Commission. That is how the Constitution (80th Amendment) Act, 2000, was introduced on 25th September, 2000, to implement these recommendations but with some minor modifications. The Constitution (80th Amendment) Act, 2000, was enacted by the WP8572.doc Parliament and the amendment was asserted on 19 th June, 2000. Now, the new Article 270 is substituted with retrospective effect from 1st April,1996. Mr. Sridharan then invites our attention to the Report of the Eleventh Finance Commission of June, 2000, for the period 2000-2005 and to submit that the States were to get 1.5% of the total Central taxes in lieu of their share of additional duties of excise. Mr. Sridharan submits that the recommendations are that if any State levies and collects sales tax on sugar, textile and tobacco it will not be entitled to any share from this 1.5%. Mr. Sridharan also invites our attention to the Constitution (Distribution of Revenues) No.5 Order 2000 issued by the President. Thereafter, he relies on the recommendations in the Report of the Twelfth Finance Commission for the period 2005- 2010. Mr. Sridharan submits that even the Constitution (Distribution of Revenues) No.5 Order 2005 implementing the recommendations of the Finance Commission would denote that the State of Maharashtra has been given a share of additional duties of excise on the condition that they will not levy any sales tax on the three commodities referred above.

60 Article 269 which we have reproduced deals with taxes levied and collected by the Union but assigned to the States. There has been a substitution of this Article by the Constitution (80th Amendment) Act, 2000. Now, with effect from 9th June, 2000, this Article and divided into three clauses states that the taxes on the sale or purchase of goods and taxes on the consignment of goods shall be levied and collected by the Government of India, but shall be assigned and shall be deemed to have been assigned to the States on or after the 1 st day of April, 1996 in the manner provided in clause (2). Therefore, the explanation below it defines the words and expressions "taxes on sale or purchase of goods and taxes on the consignment of goods and both take place in the course of inter-