STAMPS

(1) Subject to the provisions Of this Ordinance and the exemptions contained in Schedule of the following instruments and documents shall be chargeable with duty of the amount indicated in that Schedule as the proper duty therefor respectively, that is to say:-

(2) The Minister on being satisfied, in respect of any country, that no stamp duty is chargeable in that country in the case of any instrument executed by, or on behalf of, or in favour of, the Government of Ceylon may declare, by Order published in the Gazette, that the exemption granted by paragraph (ii) of the proviso to subsection (1) shall apply to a similar instrument executed by, or on behalf of, or in favour of, the Government of that country,

(3) Where any duty has been paid under this Ordinance, in respect of any instrument – executed by, or on behalf of, or in favour of, the Government of any foreign country, it shall be lawful for the Commissioner- General, with the consent of the Minister in charge of the subject of Finance, to refund the amount so paid by way of duty in the event of an Order under subsection (2) of this section being made in respect of that country.

(1)

(2) All share certificates, the payment of stamp duty payable whereon shall have been compounded for as aforesaid, shall be admitted for all purposes to be good and available in law as if duly stamped.

(1) Except as otherwise expressly provided in this Ordinance, all duties with which any instruments are chargeable shall be paid, and such payment shall be indicated on such instruments, by means of stamps-

(2) The rules made under subsection (1) may, among other matters, regulate-

(1) Whoever-

(2) Any instrument bearing an adhesive stamp which has not been cancelled so that it cannot be used again shall, so far as such stamp is concerned, be deemed to be unstamped.

(3) The person required by subsection (1) to cancel an adhesive stamp may cancel it by writing in ink on or across the stamp, or where there is more than one stamp requiring cancellation, on or across all such stamps, his name or initials or the name or initials of his firm with the true date of his so writing, so as effectually to obliterate and cancel such stamp or stamps, or so as not to admit of the same being used again.

(1) It shall be the duty of every notary public who shall attest any instrument for which adhesive stamps are used to state in his attestation the number and value of the stamps affixed to such instrument, and to cancel the stamps thereon as directed by this Ordinance.

(2) Every notary public who shall attest any document without so stating the number and value of such stamps, or shall fail to cancel the stamps as directed by this Ordinance, shall be guilty of an offence, and be liable on conviction to a fine not exceeding two hundred rupees. But no omission of such statement on the part of such notary shall affect the validity of such instrument.

(3) It shall be the duty of every officer in the service of Government, and of any banker doing business in Ceylon, to see that no instrument liable to stamp duty is received or admitted, or registered or issued by him, unless it shall have been duly stamped and the stamp thereon duly cancelled as directed by this Ordinance, and to mark every adhesive stamp coming before him for the first time in the ordinary course of business, by cutting it with a prick, punch, cutter or nipper, in such way that such stamp cannot be again used, or as the Minister shall from time to time direct:

Provided that it shall not have been previously so cut;

Provided also necessary so to that it shall not be mark foreign bills of exchange drawn in but payable out of Ceylon, or stamps on receipts attached to public accounts.

(a) share transfers executed in Ceylon, which are so stamped within one month after the execution thereof; and

(b) all other instruments, whether executed in Ceylon or out of Ceylon, which are so stamped at or within the time prescribed by this Ordinance.

(i) if, at the time any such bill of exchange, cheque, or note comes into the hands of any holder thereof in Ceylon, the proper adhesive stamp is affixed thereto and cancelled in manner prescribed by section 7, and such holder has no reason to believe that such stamp was affixed or cancelled otherwise than by the person and at the time required by this Ordinance, such stamp shall, so far as relates to such holder, be deemed to have been duly affixed and cancelled ;

(ii) nothing contained in this proviso shall relieve any person from any penalty incurred by him for omitting to affix or cancel a stamp.

(1) Where an instrument (not being a promissory note or bill of exchange) makes redeemable or qualifies a duly stamped transfer of any stock, share or marketable security and such transfer is intended as security for money advanced or to be advanced by way of loan or for an existing or future debt, it shall be chargeable with duty as if it were an agreement.

(2) Every instrument creating a mortgage of shares in favour of an approved credit agency under section 73 of the Mortgage Act shall be chargeable with duty as if it were an agreement.

(3) A release or discharge of any such instrument shall only be chargeable with a like duty.

(1) Where the consideration, or any part of the consideration, for a conveyance consists of money payable periodically for a definite period not exceeding twenty years, so that the total amount to be paid can be previously ascertained, the conveyance shall be chargeable in respect of that consideration with ad valorem duty on such total amount.

(2) Where the consideration, or any part of the consideration, for a conveyance consists of money payable periodically for a definite period exceeding twenty years or in perpetuity, or for any indefinite period not terminable with life, the conveyance shall be chargeable in respect of that consideration with ad valorem duty on the total amount which will or may, according to the terms of the instrument, be payable during the period of twenty years calculated from the date on which the first payment becomes due.

(3) Where the consideration, or any part of the consideration, for a conveyance consists of money payable periodically during any life or lives, the conveyance shall be chargeable in respect of that consideration with ad valorem duty on the amount which will or may, according to the terms of the instrument, be payable during the period of twelve years calculated from the date on which the first payment becomes due.

(1) Any instrument for the creation or sale of any annuity or other right to a periodical payment not before in existence, ” whether created by actual grant or conveyance or only secured by bond, warrant of attorney, covenant, agreement or otherwise, shall be chargeable with the same duty as on a conveyance of movable property for the consideration set forth in such instrument. If no consideration is so set forth, the consideration shall be deemed to be-

(1) In the case of any instrument of conveyance or transfer chargeable with duty on the consideration expressed therein, where it appears to the Commissioner of Stamps-

he may call upon the parties to the instrument to furnish proof to his satisfaction that the transaction embodied in such instrument was a bona fide conveyance or transfer for a consideration wholly pecuniary. Where no proof is furnished or the proof furnished is, in the opinion of the Commissioner of stamps, inadequate, the instrument shall be deemed to be a conveyance for a consideration partly pecuniary and partly other than pecuniary, and shall be chargeable accordingly.

(2) In the case of any instrument chargeable with duty on the value of the property set forth therein, where it appears to the Commissioner of Stamps that the value of such property has not been truly set forth therein he may ascertain the true value thereof and treat such instrument as not duly stamped, and the provisions of Chapter IV of this Ordinance shall thereupon apply to such instrument.

(1) Where any property has been contracted to be sold for one consideration to duty in case for the whole, and is conveyed to the purchaser in separate parts by different instruments, the consideration shall be apportioned in such manner as the parties think fit:

Provided that a distinct consideration for each separate part is set forth in the conveyance relating thereto, and such conveyance shall be chargeable, with ad valorem duty in respect of such distinct consideration.

(2) Where property contracted to be purchased for one consideration for the whole by two or more persons jointly, or by any person for himself and others, or wholly for others, is conveyed in parts by separate instruments to the persons by or for whom the same was purchased for distinct parts of the consideration, the conveyance of each separate part shall be chargeable with ad valorem duty in respect of the distinct part of the consideration therein specified.

(3) Where a person having contracted for the purchase of any property but not having obtained a conveyance thereof contracts to sell the same to any other person, and the property is in consequence conveyed immediately to the sub purchaser, the conveyance shall be chargeable with ad valorem duty in respect of the consideration for the sale by the original purchaser to the sub purchaser.

(4) Where a person, having contracted for the purchase of any property but not having obtained a conveyance thereof, contracts to sell the whole or any part thereof, to any other person or persons, and the property is in consequence conveyed by the original seller to different persons in parts, the conveyance of each part sold to a sub purchaser shall be chargeable with ad valorem duty in respect only of the consideration paid by such sub purchaser, without regard to the amount or value of the original consideration; and the conveyance of the residue (if any) of such property to the original purchaser shall be chargeable with ad valorem duty in respect only of the excess of the original consideration over the aggregate of the considerations paid by the sub purchasers:

Provided that the duty on such last-mentioned conveyance shall in no case be less than one rupee.

(5) Where a sub purchaser takes an actual conveyance of the interest of the person immediately selling to him, which is chargeable with ad valorem duty in respect of the consideration paid by him and is duly stamped accordingly, any conveyance to be afterwards made to him of the same property by the original seller shall be chargeable with a duty equal to that which would be chargeable on a conveyance for the consideration obtained by such original seller, or, where such duty would exceed five rupees, with a duty of five rupees.

(1) Any agreement or contract for the conveyance or transfer- or share in any

shall be charged with the same ad valorem duty, to be paid by the grantee or transferee, as if it were an actual conveyance or transfer of the business, or share in the business or such other property, as the case may be, agreed or contracted to be conveyed or transferred.

(2) Where the grantee or transferee has paid the said ad valorem duty, and before having obtained a conveyance or transfer of the property enters into an agreement or contract for the conveyance or transfer of the same, the agreement or contract shall be charged, if the consideration for the conveyance or transfer is in excess of the consideration for the original conveyance or transfer, with the ad valorem duty payable in respect of such excess consideration, and in any other case with the fixed duty of fifty cents under item 4 of Part I of Schedule A or of ten rupees under item 5 of Part I of that Schedule, as the case may require,

(3) Where duty has been duly paid in conformity with the foregoing provisions, the conveyance or transfer made to the grantee or transferee or sub-grantee or sub-transferee, or any other person on his behalf or by his direction, shall not be chargeable with any duty, and the Commissioner of Stamps, upon application, shall by endorsement denote the payment of the ad valorem duty upon the conveyance or transfer upon production of the agreement or contract, or agreements or contracts, duly stamped.

(4) Where such agreement or contract is stamped under subsection (2) with a fixed duty of fifty cents or of ten rupees, the agreement or contract shall be regarded as duly stamped for the mere purpose of proceeding to enforce specific performance or to recover damages for the breach thereof.

(5) The ad valorem duty paid upon any such agreement or contract shall be returned by the Commissioner of Stamps if it is proved to his satisfaction that the agreement or contract was subsequently rescinded or annulled or was, for any other reason, not carried into effect.

(a) in the case of any of the following instruments, namely:-

(b) in the case of a policy of insurance, by the person effecting the insurance;

(c) in the case of a conveyance, by the grantee;

(d) in the case of a lease or agreement to lease, by the lessee or intended lessee;

(e) in the case of an instrument of exchange, by the parties in equal shares.

(1) When any instrument, whether executed or not and whether previously stamped or not, is brought to the Commissioner of Stamps, together with a copy thereof, and the person bringing it applies to have the opinion of that officer as to the duty (if any) with which it is chargeable, and pays a fee of five rupees, the Commissioner of Stamps shall determine the duty (if any) with which in his opinion the instrument is chargeable, and shall notify his determination to such person by notice in writing.

(2) For this purpose the Commissioner of Stamps may require such affidavit or other evidence as he may deem necessary to prove that all the facts and circumstances affecting the chargeability of the instrument with duty, or the amount of the duty with which it is chargeable, are fully and truly set forth therein, and may refuse to proceed upon any such application until such affidavit or other evidence has been furnished accordingly:

Provided that-

(1) When an instrument brought to the Commissioner of Stamps under section 35 is in his opinion one of a description chargeable with duty, and-

the Commissioner of Stamps shall certify by endorsement on such instrument that the full duty (stating the amount) with which it is chargeable has been paid.

(2) When such instrument is in his opinion not chargeable with duty, the Commissioner of Stamps shall certify in manner aforesaid that such instrument is not so chargeable.

(3) Any instrument upon which an endorsement has been made under this section shall be deemed to be duly stamped or not chargeable with duty, as the case may be; and if chargeable with duty shall be receivable in evidence or otherwise, and may be acted upon and registered as if it had been originally duly stamped ;

Provided that nothing in this section shall authorize the Commissioner of Stamps to endorse-

(1) Any person dissatisfied with the opinion of the Commissioner of Stamps under section 35 may appeal to the Court of Appeal in the manner and subject to the conditions hereinafter provided.

(2) Any such person who desires to appeal (hereinafter referred to as the ” appellant”) shall, within ten days of the date of the notification of the opinion of the Commissioner of Stamps under section 35, deliver to the Commissioner of Stamps a written notice of objection which shall set out specifically the several grounds on which it is contended that the opinion is erroneous, and, where the appellant relies on any evidence other than the evidence, if any, furnished under section 35 (2), he shall attach to such notice any affidavits or other documents containing such evidence.

At or before the time at which a notice of objection is given under this section the appellant shall pay to the Commissioner of Stamps a fee of twenty rupees.

(3) The Commissioner of Stamps may call for any further evidence, whether by affidavit or otherwise, and shall consider the grounds of objection contained in the notice of objection delivered under subsection (2), the evidence adduced under this section and section 35 and any other evidence available to him. As soon as may be after the delivery to him of a valid notice of objection under subsection (2), the Commissioner of Stamps shall issue to the appellant a stated case which shall set out his adjudication in the matter and his reasons therefor.

In such adjudication the Commissioner of Stamps may vary or amend the opinion given under section 35.

(4) The appellant may at any time within thirty days after receiving the stated case transmit such case to the Court of Appeal, and shall at or before such time give to the Commissioner of Stamps notice in writing of the transmission of such stated case.

(5) Save with the consent of the Court of Appeal and subject to such terms as the court may determine, the appellant shall not at the hearing before the Court of Appeal be allowed to rely upon any ground not specifically set out in the notice of objection or to adduce any evidence not adduced before the Commissioner of Stamps.

(6) Any two or more Judges of the Court of Appeal may cause a stated case to be sent back for amendment and thereupon the case shall be amended accordingly.

(7) Any two or more Judges of the Court of Appeal shall hear and determine the appeal and if the instrument in question is in the opinion of the court chargeable with any duty shall determine the duty with which it is chargeable. The court may also make such order in regard to costs as to the court may seem fit.

(8) For the purposes of stamp duty under Part II of Schedule A*, all proceedings before the Court of Appeal under this section shall be deemed to be civil proceedings of the value of five thousand rupees or of the amount of stamp duty as determined by the Commissioner of Stamps in his adjudication under subsection (3), whichever is greater, and the case stated, together with all books, documents and papers attached thereto by the Commissioner of Stamps, shall be deemed to be a single exhibit.

(9) For the purpose of enabling the Commissioner of Stamps or the appellant to appeal to Her Majesty in Council against any order of the Supreme Court under subsection (7) and for the purpose of the application of the Appeals (Privy Council) Ordinance-

(1) For that purpose every such person shall examine every instrument so chargeable and so produced or coming before him, in order to ascertain whether it is stamped with a stamp of the value and description required by the law in force in Ceylon when such instrument was executed or first executed :

Provided that nothing herein contained shall be deemed to require any Magistrate or Judge of a criminal court to examine or impound, if he does not think fit so to do, any instrument coming before him in the course of any proceeding.

(2) For the purposes of this section, in cases of doubt the Minister[1] may determine-

(a) any such instrument not being an instrument chargeable with a duty not exceeding twenty-five cents or a bill of exchange or promissory note shall, subject to all just exceptions and to the provisions of section 42, be admitted in evidence on payment of the duty with which the same is chargeable, or, in case of an instrument insufficiently stamped, of the amount required to make up the duty, together with a penalty-

(b) where any person from whom a stamped receipt could have been demanded has given an unstamped receipt, and such receipt if stamped would be admissible in evidence against him, then such receipt shall be admitted in evidence against him on payment of a penalty of one rupee by the person tendering it;

(c) where a contract or agreement of any kind is effected by correspondence consisting of two or more letters, and any one of the letters bears the proper stamp, the contract or agreement shall be deemed to be duly stamped;

(d) nothing herein contained shall prevent the admission of any instrument in any court when such instrument has been executed by or on behalf of the Government, or where it bears the certificate of the Commissioner of Stamps as provided by section 36 or any other provision of this Ordinance;

(e) nothing herein contained shall be taken to prevent the admission of any instrument in any criminal court.

(1) Where an instrument has been admitted in evidence, such admission shall not, except as provided in this section be called in question at any stage of the same suit or proceeding on the ground that the instrument has not been duly stamped.

(2) When any court in the exercise of its civil jurisdiction makes any order admitting any instrument in evidence as duly stamped or as not requiring a stamp, or upon payment of duty and a penalty under section 41, and the proceedings in which such order is made come before the Court of Appeal by way of appeal, the Court of Appeal may, of its own motion or on the application of the Commissioner of Stamps take such order into consideration.

(3) If such court, after such consideration, is of opinion that such instrument should not have been admitted in evidence without the payment of duty and penalty under section 41, or without the payment of a higher duty and penalty than those paid, it may record a declaration to that effect, and determine the amount of duty with which such instrument is chargeable, and may require any person in whose possession or power such instrument then is to produce the same, and may impound the same when produced.

(4) When any declaration has been recorded under subsection (3), the court recording the same shall send a copy thereof to the Commissioner of Stamps, and where the instrument to which it relates has been impounded or is otherwise in the possession of such court, shall also send him such instrument.

(5) The Commissioner of Stamps may thereupon, notwithstanding anything contained in the order admitting such instrument in evidence, or in any certificate granted under section 48, or in section 49, prosecute any person for any offence against the stamp law which the Commissioner of Stamps considers him to have committed in respect of such instrument:

Provided that—

(1) When the person impounding an instrument under sections 38 and 39 has by law or consent of parties authority to receive evidence, and admits such instrument in evidence upon payment of a penalty as provided by section 41, he shall send to the Commissioner of Stamps an authenticated copy of such instrument, together with a certificate in writing, stating the amount of duty and penalty levied in respect thereof, and shall send such amount to the Commissioner of Stamps or to such person as he may appoint in this behalf.

(2) In every other case the person so impounding an instrument shall send it in original to the Commissioner of Stamps.

(1) When a copy of an instrument is sent to the Commissioner of Stamps under section 44 (1), he may, if the penalty exceeds twenty rupees, upon application made to him in this behalf, or if no application is made, with the consent of the Minister, refund any portion of the penalty in excess of twenty rupees which has been paid in respect of such instrument.

(2) When such instrument has been impounded only because it has been written in contravention of section 10 or section 12, the Commissioner of Stamps may refund the whole penalty so paid.

(1) When the Commissioner- General impounds any instrument under sections 38 and 39 or receives any instrument sent to him under section 44 (2), not being an instrument chargeable with a duty not exceeding twenty-five cents, or a bill of exchange or promissory note, he shall adopt the following procedure:-

(2) The Commissioner of Stamps may, if he thinks fit, remit any part or whole of the penalty prescribed by subsection(1)

(3) Where the correct amount of stamp duty has been paid on an instrument and it has been impounded only because it has been written in contravention of section 10 or section 12, or because of an irregularity in any endorsement thereon or by reason of the use of a stamp of sufficient amount but of improper description or because it has not been stamped at the time required by law or because the stamp has not been cancelled in accordance with the law, the Commissioner of Stamps if he is satisfied that the irregularity was due to accident, mistake or urgent necessity, may on payment of a penalty certify by endorsement that the proper duty has been paid, and every instrument so endorsed shall be deemed to have been duly stamped from the date of its execution.

(4) Every certificate under paragraph (a) of subsection (1) shall, for the purposes of this Ordinance, be conclusive evidence of the matters stated therein.

(5) Where any instrument has been sent to the Commissioner of Stamps under section 44 (2), the Commissioner of Stamps shall, when he has dealt with it as provided by this section, return it to the impounding officer.

(6) If in the exercise of the powers conferred upon him by paragraph (b) of subsection (1) the Commissioner of Stamps requires the payment of any amount by way of duty or penalty for the reason that in his opinion any stamp upon an instrument is not genuine or has been previously used, the person required to pay such amount may within ten days after such requirement has been made known to him, apply by petition to the District Court having jurisdiction in the district in which such person resides, or in which the instrument was executed, authenticated or attested, to determine the question whether such stamp is or is not genuine, or whether it has or has not been previously used, as the case may be.

(7) Every such application shall be stamped as if it were a petition of appeal in Class I, and due notice thereof shall be given by the applicant to the Commissioner of Stamps and to the Attorney-General, both of whom may appear or be represented at the hearing of the application.

(8) Upon the hearing of such application, the District Court shall decide the question for the determination of which the application was made, and shall have power to confirm, cancel or vary the requirement of the Commissioner of Stamps and to make any such order consequential upon its decision, including an order as to costs, as it shall deem just.

(1) When the duty and penalty (if any) leviable in respect of any instrument Section 41, Section 46,or section 47, the person admitting such instrument in evidence or the Commissioner of Stamps, as the case may be, shall certify by endorsement thereon that the proper duty or, as the case may be, the proper duty and penalty (stating the amount of each) have been levied in respect thereof, and the name and residence of the person paying them.

(2) Every instrument so endorsed shall thereupon be admissible in evidence, and may be registered and acted upon and authenticated as if it had been duly stamped, and shall be delivered on his application in this behalf to the person from whose possession it came into the hands of the officer impounding it, or as such person may direct:

Provided that-

(1) When any duty or penalty has been paid under section 41, section 46, or section 47 by any person in respect of an instrument, and, by agreement or under the provisions of this Ordinance or any other enactment in force at the time such instrument was executed, some other person was bound to bear the expense of providing the proper stamp for such instrument, the first-mentioned person shall be entitled to recover from such other person the amount of the duty or penalty so paid.

(2) For the purpose of such recovery any certificate granted in respect of such instrument under this Ordinance shall be conclusive evidence of the matters therein certified.

(3) Such amount may, if the court thinks fit, be included in any order as to costs in any suit or proceeding to which such persons are parties and in which such instrument has been tendered in evidence. If the court does not include the amount in such order, no further proceedings for the recovery of the amount shall be maintainable.

(1) Where any penalty exceeding one hundred rupees is paid under section 41 or section 46, the Commissioner of Stamps may, with the consent of the Minister,[1] upon application in writing made within one year from the date of the payment, refund such penalty wholly or in part.

(2) Where, in the’ opinion of the Commissioner of Stamps, stamp duty in excess of that which is legally chargeable has been charged and paid under section 41 or section 46, the Commissioner of Stamps may, with the consent of the Minister,1 upon application in writing made within three months of the order charging the same, refund the excess.

(1) If any instrument sent to the Commissioner of Stamps under section 44 (2), is lost, destroyed, or damaged during transmission, the person sending the same shall not be liable for such loss, destruction, or damage.

(2) When any instrument is about to be so sent, the person from whose possession it came into the hands of the person impounding the same may require a copy thereof to be made at the expense of such first-mentioned person and authenticated by the person impounding such instrument.

(1) If any instrument chargeable with stamp duty is executed in Ceylon and is not duly stamped, then every person executing such instrument shall be liable to pay to the Commissioner of Stamps the stamp duty and any penalty attaching to the non-payment of such duty.

(2) If any instrument chargeable with stamp duty is executed out of Ceylon, then every person in Ceylon who has executed the instrument and every person in Ceylon using the instrument in any way shall be liable to pay to the Commissioner of Stamps the stamp duty and any penalty attaching to the non-payment of such duty.

(3) The provisions of subsections (1) and (2) shall have effect notwithstanding anything to the contrary in any other provisions of this Ordinance specifying the person who shall, or the persons who shall and the shares in which they shall, pay stamp duty in respect of any instrument chargeable with such duty.

(4) When the duty and penalty, if any, payable in respect of any instrument have been recovered by the Commissioner of Stamps from any person specified in subsections (1) and (2), and by agreement or otherwise some other person was bound to bear the expense of providing the proper stamp for such instrument, such first-mentioned person shall be entitled to recover from such, other person the amount of the duty and penalty, if any, so recovered.

(1) Every person who, having receive(i) any sum of money as for payment of stamp duty on any instrument executed, authenticated or attested by him, does not apply the money to the due payment of duty and improperly withholds or detains the same or any part thereof, shall be accountable for the payment of any stamp duty so improperly applied, withheld or detained, and the same shall be a debt owing from him to the Her Majesty, and recoverable as provided in subsection (2).

(2) If any amount shall be owing to Her Majesty under subsection (1), the Commissioner of Stamps may apply by petition to the District Court having jurisdiction in the district in which the person accountable under subsection (1) may be resident for the time being, or in which the instrument was executed, authenticated or attested, to issue a citation to such person to appear and pay such amount, together with the costs of the proceedings, or to show cause to the contrary.

(3) If cause is shown, the court shall make such order as it may deem just.

(4) The court may cause execution to issue for all sums found payable to Her Majesty under this section, together with the costs of the proceedings.

(1) Every person who supplies or cancels any stamp used for any instrument executed, authenticated or attested by him shall, if such stamp is not genuine or has been previously used, be accountable for the amount of the stamp, and such amount shall be a debt owing from him to Her Majesty, and recoverable as provided in subsection (2).

(2) If, in the opinion of the Commissioner of Stamps, any amount shall be owing to the Her Majesty under subsection (1) the Commissioner of Stamps may apply by petition to the District Court having jurisdiction in the district in which the person accountable under subsection (1) may be resident for the time being, or in which the instrument was executed, authenticated or attested, to issue a citation to such person to appear and show cause, within a time to be specified therein, why execution for such amount should not issue against him, and if upon being so cited, such person does not appear or fails to prove to the satisfaction of the court that the stamp supplied or cancelled by him as aforesaid is a genuine stamp and had not been previously used, or fails to show other sufficient cause, the court may cause execution for such amount to issue.

(3) If cause is shown, the court make such order as it may deem just.

(1) When the duty and penalty, if any, payable in respect of any instrument have been recovered by the Commissioner of Stamps under sections 55, 56, or 57, the Commissioner of Stamps shall certify by endorsement on the instrument-

and shall certify in the same endorsement that the instrument is duly stamped.

(2) Every such certificate shall, for the purposes of this Ordinance, be conclusive evidence of the matters stated therein.

(1) Subject to such rules as may be made by the Minister,[1] as to the evidence to be required, or the inquiry to be made, the Commissioner of Stamps may, on application made within the period prescribed in section 60, and if he is satisfied as to the facts, make allowance for stamps spoiled in the cases hereinafter mentioned, namely:-

Vac certificate of the Commissioner of Stamps under section 36 that the full duty with which an instrument is chargeable has been paid is a stamp within the meaning of this section.

(2) Where any stamp duty has been paid by composition, allowance may be made in respect of such duty in the same circumstances and subject to the same conditions as if such duty had been paid in stamps affixed to the instrument in respect of which the right to compound has been granted.

(a) in the cases mentioned in paragraph (d) (v), within two months of the date of the instrument;

(b) in the case of a stamped paper on which no instrument has been executed by any of the parties thereto, within six months after the stamp has been spoiled ;

(c) in the case of a stamped paper in which an instrument has been executed by any of the parties thereto, within six months after the date of the instrument, or, if it is not dated, within six months after the execution thereof by the person by whom it was first or alone executed:

Provided that-

(a) When any person has inadvertently used for an instrument chargeable with duty a stamp of a description other than that prescribed for such instrument by the rules made under this Ordinance, or a stamp of greater value than was necessary, or has inadvertently used any stamp for an instrument not chargeable with any duty; or

(b) when any stamp used for an instrument has been inadvertently rendered useless under section 13, owing to such instrument having been written in contravention of the provisions of section 10,

Commissioner of Stamps may, on application made within six months after the date of the instrument, or, if it is not dated, within six months after the execution thereof by the person by whom it was first or alone executed, and upon the instrument, if chargeable with duty, being restamped with the proper duty, cancel and allow as spoiled the stamp so misused or rendered useless.

(a) other stamps of the same description and value; or

(b) if required and he thinks fit, stamps of any other description to the same amount in value; or

(c) at his discretion, the same value in money, deducting two and a half cents for each rupee or fraction of a rupee.

(a) that such stamp or stamps were purchased by such person with a bona fide intention to use them; and

(b) that he has paid the full price thereof; and

(c) that they were so purchased within the period of six months next preceding the date on which they were so delivered:

Provided that, where the person is a licensed vendor of stamps, the Commissioner of Stamps may, if he thinks fit, make the repayment of the sum actually paid by the vendor without any such deduction as aforesaid.

(1) Any person-

Provided that, where any penalty has been paid in respect of any instrument under section 41, or section 43, or section 46, the amount of such penalty shall be allowed in reduction of the fine (if any) subsequently imposed under this section in respect of the same instrument upon the person who paid such penalty.

(2) If a share warrant is issued without being duly stamped, the company issuing the same, and also every person who, at the time when it is issued, is the managing director or secretary or other principal officer of the company, shall be punishable with fine which may extend to five hundred rupees.

(a) executes any instrument in which all the facts and circumstances required by section 28 to be set forth in such instrument are not fully and truly set forth; or

(b) being employed or concerned in or about the preparation of any instrument neglects or omits fully and truly to set forth therein all such facts and circumstances; or

(c) does any other act calculated to deprive the Government of any duty or penalty under this Ordinance,shall be punishable with fine which may extend to one thousand rupees or with imprisonment of either description for a term not exceeding six months, or with both such fine and imprisonment.

(a)being required under section 34 to give a receipt, refuses or neglects to give the same; or

(b) with intent to defraud the Government of any duty, upon a payment of money or delivery of property amounting to twenty rupees or upwards in amount or value, gives a receipt for an amount or value less than twenty rupees, or separates or divides the money or property paid or delivered,

(a) receives or takes credit for any premium or consideration for any contract of insurance and does not, within one month after receiving or taking credit for such premium or consideration, make out and execute a duly stamped policy of such insurance; or

(b) makes, executes, or delivers out any policy which is not duly stamped, or pays or allows in account or agrees to pay or allow in account any money upon, or in respect of, any such policy,

shall be punishable with fine which may extend to two hundred rupees.

(a) with intent to defraud the Government of duty, draws, makes, or issues any bill of exchange or promissory note bearing a date subsequent to that on which such bill or note is actually drawn or made; or

(b) knowing that such bill or note has been so post-dated, endorses, transfers, presents for acceptance or payment, or accepts, pays, or receives payment of such bill or note, or in any manner negotiates the same; or

(c) with the like intent practices or is concerned in any act, contrivance, or device not specially provided for by this Ordinance or any other law for the time being in force,

(1) The Commissioner of Stamps may stay any such prosecution or compound any such offence.

(2) The amount of any such composition shall be recoverable in the manner provided by section 54.

(1) Every person who shall be licensed under the authority of this Ordinance to deal in stamps shall cause to be painted in capital letters, one inch at least in height, and of a proper and proportionate breadth, on some conspicuous place on the outside of the front of the house or shop at which he shall be licensed to deal in stamps, and so that the same shall be at all times distinctly legible, the full name of such licensed person, together with the words and words of similar import in the Tamil and English languages; and such person shall keep such name and words so painted during all the time that he shall continue licensed ; and if any person so licensed shall neglect or omit to keep the same so painted, he shall be guilty of an offence, and be liable to a fine not exceeding one hundred rupees:

Provided that in the case of several persons licensed as aforesaid in co-partnership, it shall be sufficient if the name of one only of such persons, or of the firm, be painted in manner aforesaid.

(2) If any person shall write, paint, or mark, or shall cause or procure to be written, painted, or marked, or shall permit themselves out or suffer to continue written, painted, or marked, upon any part of his house, shop, or premises, either in the inside or on the outside thereof, or upon any board, or any material whatever exposed to public view, and whether the same shall or shall not be affixed to such house, shop, or premises, any word or words which shall import or signify, or be intended to import or signify, that such person is a vender of or dealer in stamps, such person not being licensed to deal in stamps, he shall be guilty of an offence, and be liable to a fine not exceeding one hundred rupees for every day such offence shall be committed or continued.

(1) The Minister,[1] if at any time it shall be considered expedient to do so, discontinue the issue of licences to sell stamps or any specified description of stamps by publishing in the Gazette not later than the thirtieth day of June a Notification to the effect that after the thirty-first day of December then next following the issue of licences to sell stamps or any specified description of stamps will be discontinued.

(2) Whenever the issue of licences to sell stamps has been discontinued, the Minister[1] may make rules entrusting the sale of stamps to the public officers therein mentioned, and regulating the manner and conditions in and subject to which such sale shall be carried on.

(3) A person authorized as aforesaid to sell stamps shall not be liable to the penalties by this Ordinance provided with respect to persons selling stamps without a licence.

(1) Where any person issuing policies of insurance against accident shall for the opinion or the Commissioner of Stamps so carry on the business of such insurance as to render it impracticable or inexpedient to require that the duty specified in Part I of Schedule A* be charged and paid upon any of such policies, the Commissioner of Stamps may enter into an agreement with that person for the delivery of half-yearly accounts of all sums received in respect of premiums on the said last-mentioned policies of insurance against accident.

(2) The agreement shall be in such form and shall contain such terms and conditions as the Commissioner of Stamps may think proper, and the person with whom the agreement is entered into shall observe the following rules:-

(3) After an agreement has been entered into between the Commissioner of Stamps and any person and during the period for which the agreement is in force, no policy of insurance against accident issued by that person and provided for in the agreement shall be chargeable with any duty, but in lieu of and by way of composition for that duty there shall be charged on the aggregate amount of all sums received in respect of premiums on such policies of insurance against accident a duty at the rate of five rupees per centum as a stamp duty.

(4) In the case of willful neglect to deliver such an account as is hereby required or to pay the duty in conformity with this section, the person shall be further liable to pay as penalty a sum equal to ten rupees per centum upon the amount of duty payable, and a like penalty for every month after the first month during which the neglect continues.

(5) The duty and penalty required to be paid under this section may be recovered as if they were required to be paid under Chapter IV.

(a) an order for the payment of any sum of money by a bill of exchange or promissory note, or for the delivery of any bill of exchange or promissory note in satisfaction of any sum of money, or for the payment of any sum of money out of any particular fund which may or may not be available, or upon any condition or contingency which may or may not be performed or happen,

(b) an order for the payment of any sum of money weekly, monthly, or at any other stated periods, and

(c) a letter of credit, that is to say, any instrument by which one person authorizes another to give credit to the person in whose favour it is drawn;

(a) labels affixed and impressed by the proper officer, and

(b) stamps impressed by means of a die;

(a) any instrument by which one person, in consideration of a premium, engages to indemnify another against loss, damage, or liability arising from an unknown or contingent event;

(b) a life policy, and any policy insuring any person against accident or sickness, and any other personal insurance ; and

(c) any writing evidencing the renewal of, for the purpose of keeping in force, a policy of fire insurance in respect of which, and of the previous renewal whereof (if any) there has not already been paid the stamp duty which would have been chargeable if the policy had originally been granted for a longer term than six months;

(a) means any insurance made upon any ship or vessel (whether for marine or inland navigation), or upon the machinery, tackle, or furniture of any ship or vessel, or upon any goods, merchandise, or property of any description whatever on board of any ship or vessel, or upon the freight of, or any other interest which may be lawfully insured in or relating to, any ship or vessel; and

(b) includes any insurance of goods, merchandise, or property for any transit which includes, not only a sea risk within the meaning of paragraph (a), but also any other risk incidental to the transit insured from the commencement of the transit to the ultimate destination covered by the insurance;

(c) where any person, in consideration of any sum of money paid or to be paid for additional freight or otherwise, agrees to take upon himself any risk attending goods, merchandise, or property of any description whatever while on board of any ship or vessel, or engages to indemnify the owner of any such goods, merchandise, or property from any risk, loss, or damage, such agreement or engagement shall be deemed to be a contract for sea insurance;

(a) whereby any money, or any bill of exchange, cheque or promissory note is acknowledged to have been received, or

(b) whereby any other movable property is acknowledged to have been received in satisfaction of a debt, or

(c) whereby any debt or demand, or any part of a debt or demand, is acknowledged to have been satisfied or discharged, or

(d) which signifies or imports any such acknowledgment, and whether the same is or is not signed with the name of any person;