Additional excise duties on specified goods create a central levy with a mandated distribution of net proceeds to states. The Act establishes a statutory levy and collection of additional duties of excise on goods of special importance and treats those duties as central excise revenue. It further provides that a portion of the net proceeds of these additional duties shall be distributed among the States in accordance with the principles and recommendations of the Finance Commission. The Act is titled the Additional Duties of Excise (Goods of Special Importance) Act and extends to the whole of India.