Indian Polity by Laxmikant - Indian Federation Center - State Relations

                                    Indian Federation Center - State Relations

·          Part 11, 12 deals with C – S relations FROM 245 – 300.

·          The federation is not mentioned in the const.

·          ART – 1 Says India i.e., bharat shall be union of states.

·           Indian Federation is a result of holding together of the states. American federation – coming together.

·          7^th schedule deals division of powers between centre – state.

    There are 3 fold divisions of powers in the const.

1.      Union list (list 1)

2.      State list (list 2)

3.      Concurrent list (list 3)

Union list: Originally there were 97 items, now there are 100 items.

•  This list has parliament making laws to it.
• All the matters of national significance. They are banking, currency, all major 3 sectors, defense, nuclear energy, internal relation.

State list: Originally there were 66 now 61 items

• Matters of local significance namely Agriculture, law & order, jails, local self Govt., co operations, mining, sports.

Concurrent list: Originally 47, but now 52.

•  Civil & criminal procedures, socio – economic planning, education, forest, protection of environment & population control legal metrology. These were in state list, by amend. Of 42^nd 1976 à concurrent list.
• All the residuary items (unremunerated) have been assigned to centre; to ensure strong central govt.

Part – 11 Art – 245 – 255 deals with legislative relation

Art 245 – the extent of the laws made by parliament & state legislature.

•   Law made by state govt. is confined to territorial jurisdiction of the state (coterminous with state).
•  Law made by the parliament is applicable to all citizens in India & also to citizens living abroad.
• This is known as ‘Extra territorial legislation’.

Ex: Sarala mudigal case.

Art – 246 – division of powers in 3 lists.

Art – 248 – residuary powers of the centre.

Art – 249 – If RS approves resolution with special majority & declares that, one of the subjects in state matter has acquired national significance on this basis; parliament can make law in ‘state list’.

• This is known as temporary transfer of subject matter in a state to union list; usually extended temporarily for 1 yr at a time.
• Both under emergency & normal conditions.

Art – 250 – Parliament can make law on the state list subjects during the times of national emergency.

Art – 251 – in case of a conflict between the laws made by parliament in state list under art 249, 250 with the laws made by the state in the state list, the central law prevails.

Art – 252 – If 2 / more than 2 states request the parliament, to make law in the state list, parliament can make laws in the state list subjects.

Ex: regulation of human organ transplantation act, 1994 prize competition act, 1955.

Protection of wildlife act, 1972.

Art – 253 – parliament can make a law in the state list, to implement international agreements, treaties & national policies.

Art – 254 – making a law in the concurrent list.

• If state govt. makes a law in concurrent list, with prior permission of president, state law prevails.
• However, if parliament makes law on same subject matter made by state. If there is conflict between 2, the state law prevails to state of non-inconsistency, central law to extent of inconsistency.
• But parliament is empowered to terminate the law made by the state in concurrent list completely.

Art – 255 the prior permission of president & government of a state, on certain kills & proposals is a matter of procedure only.

Note: “Doctrine of Pith & Substance"

• This doctrine is employed to resolve the disputes between centre states in case of inclined encroachments in the areas of legislation.
•  If the intension of law is good, though it meidents enters into other areas, law is held valid.

Admin Relations between Centre- State Art: [256-260]

- These relations are called ‘Municipal’.

Art – 256: Every state government has to exercise its executive authority in such a way, not to prejudice the authority of the centre.

Art – 257: Central government May give admin directions or orders to every state government w.r.t protecting the properties of central government in the state.

• So every state government has to comply with such orders. If it violates, it amounts to the constitutional violation, which attracts (Art - 365).

Art – 258: Central government can entrust some of its function to the state government with/without conditions.

Art - 258(A) Inserted in 7^th Amend, 1956, says that even states can entrust some of the functions to central government with/without conditions. These 2 articles imply cooperative federalism.

Art – 259: has been deleted.

Art – 260: Central government administers newly acquired areas.

Art – 261: All the records, certificates & other documentary evidences issued by various states must be honoured in all parts of India.

Art – 262: Parliament, by law may establish interstate river water dispute tribunals. This tribunal is a legal body (Under parliament).

Art – 263: President may establish an interstate council, to recommend suggestions w.r.t centre-state or interstate relations.

•  Interstate council is constitutional body consisting of chairman i.e, PM & CMs of states.
•  It is an advisory body.

Financial Relations between Centre – State:

•  Part 12^th Articles [264 – 300] deal with financial relations.

Art – 265: No tax shall be imposed save by authority of law. [No taxation without legislation].

·         This is a legal right / constitutional right.

Art – 266: Consolidated Fund of India, consolidated fund of states & public account of India, P.A of states.

•  All the revenues received by GOI, all borrowing / loans made by GOI are credited into this fund.
• All expenditures are met from this fund. There are 2 types of expenditures on this fund.

1.      Exp. charged on.

2.      Exp. made on.

• Charged on means, that exp. is not put to the vote of parliament. This parliament can’t reduce such expenditures.
• The salaries mentioned in schedule-2 are not put to the vote of parliament. But parliament can debate on such expenditure.
• Made on means, it is put to the vote of parliament members and parliament can reduce.
• Public money in the name of provident fund, certificates postal savings, court files.
• Public account is regulated by executive action. But, no money can be taken from consolidated fund, without president’s prior permission.

Art – 267: Contingency fund of India & states.

• Contingency fund is a permanent advance in the hands of president, in the nature of imprest to meet unforeseen expenditures due to calamities. The parliament appropriates the expenditure from this fund.

Art – 268: Division of resources between centre & states.

These are exclusive areas on which central government can impose taxes, collect amount & retain the amount. There are 15 items on which central government impose taxes

•      Customduty. ( Import/ Export)
•      Corporate tax (It and companies tax)
•      Estate duty (Non Agricultural  Lands)
•       Exercise duty (Tobacco)
•      Capital gain tax
•       Luxury taxes on malls & hotels.

Exclusive taxes to state. There are 20 items state government gets taxes:

• Commercial Taxes (VAT)
• State excise (Tax of liquor)
•  Land revenue.
• Motor vehicle tax
• Local taxes like Entertainment, ppty tax
• Toll taxes.
•  Octraic tax

According to Art – 268, there are certain taxes, which are imposed by central government & collected by states & also retained.

Ex: Tax on medicines, cosmetic preparation containing alcohol stamp duties.

Art – 268(A): Service tax imposed & collected by central government, but shared between centre & state. Service tax had been added to central list on 88^th Amend, 2003.

Art – 269: Taxes which are levied and collected by central government, but collected amount is given to states, where the amount is collected.

Ex: terminal taxes, sales tax on newspapers & advt. Surcharge on railway fares & freights.

Art – 270: Some taxes are imposed & collected by centre. But collected net amount is shared between centre & states.

Ex: IT, central excise & all other taxes not exclusive to centre & states.

Art – 271: Surcharges on certain duties & taxes for the purpose of union are not sharable.

Ex: Surcharge on IT is not sharable.

Art – 273: Central government gives special grants to the states of AS, BH, OR, WB to promote Jute & Jute products.

Art – 275: Grant – in – aid to the states, central government provides this grant to states for special department activities w.r.t SC, ST, on the recomm. Of finance comm..

Art – 280: Finance commission of India.

• A constitutional body, constituted by president for every 5 years.
• FC shall consist of chairman & 4 other members.
• Chairman should have the knowledge of public affairs.
• 1 member should have all the qualifications of judge of HC.
• Another member should be expert in Economics.
• Another member should be expert in financial admin.
• Another member should be expert in Audit & Accounting.