Utilisation of the proceeds of the tax

(1) (a) The proceeds of the tax collected under this Act every year shall be credited to the Consolidated Fund of Puducherry . (b) There shall be paid to each local body which, at the commencement of this Act, was levying tolls or vehicle tax on motor vehicles or both, a sum equivalent to the average annual income derived by such local body during the three years ending on the 30th day of June, 1966, from such tolls or vehicle tax on motor vehicles, or both, as the case may be. (c) The Government shall determine the sums which should be credited to it or paid to local bodies under clauses (a) and (b) and such determination shall be final. (2) In determining the amount payable to a local body under clause (b) of sub-section (1), the Government shall take into account,--- (a) the arrears of tolls or vehicle tax on motor vehicles left uncollected, which could have been collected; (b) the amount which the local body should have paid to any other local body on account of collections made on behalf of the latter and remaining to be adjusted; and (c) the vehicle tax payable on vehicles owned by the local body or by its employees in respect of which exemptions were granted by the local body. (3) All sums payable to local bodies under this section shall be expenditure charged on the Consolidated Fund of Puducherry.