¹ THE CONSTITUTION(DISTRIBUTION OF REVENUES)No. 5 ORDER,2000

C.O. 181

In exercise ofthe powers conferred by article 270 of the Constitution, the President, after having considered therecommendations of the Eleventh Finance Commission, hereby makes the followingOrder, namely:--

1.This Order may be called theConstitution (Distribution of Revenues) No. 5Order, 2000.

2.The General Clauses Act, 1897 (10 of 1897)shall apply for the interpretation of this Order as it applies forthe interpretation of a Central Act.

3. (1) The percentage of thenet proceeds of taxes and duties referred to in clause (1)of article 270,other than the expenditure and service taxes, which are to be assigned to theStates under clause (2) of thatarticle in each financial year commencing on and after the 1stday of April, 2000 but endingbefore the 1st day of April, 2005, shall be twenty-eight percent. and itshall be distributed among the States as follows:--

TABLE

² [Provided that the sharepayable to--

(A) the Stateof Madhya Pradesh as it existed immediately before the 1stday of November, 2000 shall be construed, as from that date, as payable to the State ofChhattisgarh and the State of Madhya Pradesh in the proportion of 2.385 : 6.453;

(B)the State of Uttar Pradesh as it existed immediately before the 9thday of November, 2000 shallbe construed, as from that date, as payable to the State of Uttaranchal and theState of Uttar Pradesh in the proportion of 0.661: 19.137;

(C) the Stateof Bihar as it existedimmediately before the 15th dayof November, 2000 shallbe construed, as from that date, as payable to the State of Jharkhand and theState of Bihar in the proportionof 3.008 : 11.589;

(2)The percentage of the net proceeds of the expenditure and service taxes, beingthe taxes and duties referred to in clause (1)of article 270, which are to beassigned to the States under clause (2)of that article, in each financial year commencing on and after the 1stday of April, 2000 but endingbefore the 1st day of April, 2005, shall be distributed amongthe States as follows:--

TABLE

Provided thatwhere in any year the expenditure and service taxes become leviable in the Stateof Jammu and Kashmir, each State including Jammu and Kashmirshall be given a shareas specified against it in column (2)of the table to sub-paragraph (1) ofparagraph 3:

² [Providedfurther that the share payable to--

(A) the Stateof Madhya Pradesh as it existed immediately before the 1stday of November, 2000 shall be construed, as from that date, as payable to the State ofChhattisgarh and the State of Madhya Pradesh in the proportion of 2.416 : 6.538;

(B)the State of Uttar Pradesh as it existed immediately before the 9thday of November, 2000 shallbe construed, as from that date, as payable to the State of Uttaranchal and theState of Uttar Pradesh in the proportion of 0.669: 19.388;

(C) the Stateof Bihar as it existedimmediately before the 15th dayof November, 2000 shallbe construed, as from that date, as payable to the State of Jharkhand and theState of Bihar in the proportionof 3.017 : 11.741.]

4.One and one-half per cent. of thenet proceeds of taxes and duties referred to in clause (1)of article 270, which are to beassigned to the States under clause (2) of that article in each financial year commencing on and after the 1stday of April, 2000 but endingbefore the 1st day of April, 2005, shall be distributed amongthe States as follows:--

TABLE

Provided thatno share shall be payable to aState in a year where that State levies any tax or duty on the sale or purchaseof any of the goods described in column (3) of the First Schedule to the Additional Duties of Excise (Goods ofSpecial Importance) Act, 1957 (58of 1957):

² [Providedfurther that the share payable to-

(A) the State of Madhya Pradesh as it existedimmediately before the 1st day of November, 2000, shall be construed, as from that date, as payable to the State ofChhattisgarh and the State of Madhya Pradesh in the proportion of 2.385:6.453:

(B)the State of Uttar Pradesh as it existed immediately before the 9thday of November, 2000,shall be construed, as from that date, as payable to the State ofUttaranchal and the State of Uttar Pradesh in the proportion of 0.661:19.137.

(C) the Stateof Bihar as it existedimmediately before the 15th dayof November, 2000,shall be construed, as from that date, as payable to the State ofJharkhand and the State of Biharin the proportion of 3.008:11.589.]

5.Any sum or sums paid to any State on or after the 1stday of April, 2000 under any Order or Act towards itsshare in the income-tax, union excise duties, additional excise duties andgrants-in-aid in lieu of tax on railway passenger fares on the basis of therecommendation of the Eleventh Finance Commission as contained in its interimreport for 2000-2001shall be adjusted against the sum or sums payable to that State in thatfinancial year in pursuance of paragraphs 3 and 4:

Provided thatwhere in any year a Union tax or duty is not leviable in a State, theshare of that State in that tax or duty shall be put to nil andthe entire proceeds shallbe distributed among the remaining States by proportionately adjusting their share.

6.The Constitution (Distribution of Revenues) AmendmentOrder, 2000, shall,as from the 1st day of April, 2000,stand repealed.

7.Any sum or sums paid to a State in excess of its entitlementshall be recoverable in the sameor a subsequent year.

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1. Published withthe Ministry of Law, Justice and CompanyAffaire, Notification No.G.S.R. 782(E),dated the 10thOctober, 2000, Gazetteof India, Extraordinary, 2000 Part-II, Section 3,sub-section (i).

2. Inserted by C.O. 182,infra.