The Union Duties of Excise (Distribution) Act, 1979
Administered Ministry: Ministry of Finance / Department of Revenue
Act details
| Short title | The Union Duties of Excise (Distribution) Act, 1979 |
|---|---|
| Long title | 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 report dated the 25th day of November, 1994. |
| Act number | 24 of 1979 |
| Act year | 1979 |
| Enactment date | 20 May 1979 |
| Ministry | Ministry of Finance / Department of Revenue |
| Department | Department of Revenue |
| Jurisdiction | Central (Parliament of India) |
| Sections | 6 |
| Status | Not repealed |
| Last checked on India Code | 2 Nov 2026 |
| Source | India Code, Government of India |
Summary
Summary of the Union Duties of Excise (Distribution) Act 1979
Key Details
• Act Name: The Union Duties of Excise (Distribution) Act, 1979
• Act No.: 24 of 1979
• Enactment Date: 20th May, 1979
• Commencement Date: Deemed to have come into force on 1st April, 1979
Summary of Provisions
1. Short Title and Commencement: - The Act may be called the Union Duties of Excise (Distribution) Act, 1979.
• Came into force on 1st April, 1979.
2. Definitions: - "Distributable Union duties of excise": 47.5% of the net proceeds of Union duties of excise, unless earmarked for a special purpose.
• "Net proceeds": As defined in clause (1) of article 279 of the Constitution.
3. Payment and Distribution to States: - Source: Sums equivalent to distributable Union duties of excise are paid from the Consolidated Fund of India.
4. Other Provisions: - Charging Payments: On the Consolidated Fund of India.
• Rule Making Power: For implementation.
• Repeal: Of unspecified previous provisions.
Legislative history
Legislative History:
The Union Duties of Excise (Distribution) Act, 1979
● Act Title - The Union Duties of Excise (Distribution) Act, 1979
● Act Number / Year - 24 of 1979
● Act ID (India Code) - 197924
● Presidential Assent Date - May 20, 1979
● Enforcement Date - April 1, 1979
● Nodal Ministry - Ministry of Finance
Precedent & Historical Rationale
● Implementation of Seventh Finance Commission Recommendations - Enacted to give statutory effect to the recommendations of the Seventh Finance Commission (chaired by J.M. Shelat), which submitted its report in 1978.
● Fiscal Devolution to States - Formulated to provide for the distribution of a specified net percentage of Union duties of excise among the States. The Seventh Finance Commission significantly increased the States' share of net proceeds of non-earmarked Union duties of excise from 20% to 40%, enhancing vertical fiscal transfers to strengthen state finances and enable equitable regional development.
Parliamentary Trajectory & Enactment
● Formulation - Introduced by the Union Ministry of Finance to establish the statutory framework and state-wise formula for sharing excise revenues for the five-year award period (1979–1984).
● Parliamentary Passage - Debated and passed by both Houses of Parliament (Sixth Lok Sabha and Rajya Sabha) during the budget session of 1979.
● Presidential Assent - Received Presidential Assent on May 20, 1979.
● Enforcement - Enforced on April 1, 1979 .
Source - Official Record of Parliament, India Code, and Ministry of Finance.