Constitution of India, 1949
268.Duties levied by the Union but collected
and appropriated by the States.-
(1)Such stamp duties and such duties of excise
on medicinal and toilet preparations as are mentioned in the Union List shall
be levied by the Government of India but shall be collected -
(a) in the case where
such duties are leviable within any Union territory, by the Government of
India, and
(b) in other cases, by
the States within which such duties are respectively leviable.
(2) The proceeds in any financial year of any
such duty leviable within any State shall not form part of the Consolidated
Fund of India, but shall be assigned to that State.