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 Sri Lanka 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) Any Schedule* of this Ordinance may be amended or may be varied by an Order made by the Minister and published in the Gazette. Every such Order shall be brought before Parliament within a period of two months from the date of publication of such Order in the Gazette by a motion that such Order shall be approved.

(2) Any Order which Parliament refuses to approve shall, with effect from the date of such refusal, be deemed to be revoked but without prejudice to the validity of anything previously done thereunder. Notification of the date on which such Order is deemed to be revoked shall be published in the Gazette.(Schedule omitted – See List of Enactments omitted from the Revised Edition, See also sections 56 and 318 of the Merchant Shipping Act.)

(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 Sri Lanka, 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 Sri Lanka, or stamps on receipts attached to public accounts.

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

(b) all other instruments, whether executed in Sri Lanka or out of Sri Lanka, 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 Sri Lanka, 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-

(2) Where any instrument referred to in subsection (1) in reality effects a gift of any such annuity or other right as is specified in that subsection, that instrument shall be chargeable with the same duty as on a gift of a value equivalent to that which is deemed under subsection (1) to be consideration if no consideration is set forth in the instrument.

(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-General-

(1A) Where the transaction embodied in the instrument referred to in subsection (1) is deemed by the Commissioner-General to be a conveyance or transfer for a consideration partly pecuniary and partly other than pecuniary, such instrument shall be chargeable with duty accordingly.

(1B) Where the transaction embodied in the instrument referred to in subsection (1) is deemed by the Commissioner-General to be partly a conveyance or transfer for a pecuniary consideration and partly a gift, such instrument shall-

(1C) Where, in the case of any instrument of conveyance or transfer to which section 32A does not apply and in which a pecuniary consideration or a consideration capable of being valued in money is set forth, it appears to the Commissioner-General that, by reason of the fact that the consideration so expressed seems not to have passed at the time of execution of the instrument or seems to be inadequate, such instrument is in reality for the purpose of bestowing a gift, he may call upon the parties to such instrument to furnish proof to his satisfaction that the transaction embodied in such instrument is a bona fide conveyance of transfer and not a gift. If no such proof is furnished or the proof furnished is in his opinion inadequate, the Commissioner-General shall deem such instrument to be for the purpose of bestowing a gift, and such instrument shall be chargeable with duty 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-General 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.

(3) Where any immovable property, or [§3,16 of any part thereof, is conveyed or transferred 1958] to the same person in lots by several instruments, and the consideration set forth in any such instrument does not exceed fifteen thousand rupees, and it appears to the Commissioner-General that several instruments were executed with the intention of avoiding the duty which would be chargeable if the total area conveyed or transferred by such instruments was conveyed or transferred by a single instrument, he may call upon the parties to such instruments to prove to his satisfaction that such instruments were not executed with such intention, and, if no such proof is furnished or the proof furnished is, in his opinion, inadequate, each instrument in which the consideration set forth does not exceed fifteen thousand rupees shall be charged with the same rate of duty as is chargeable in the case of a conveyance or transfer in which the consideration set forth exceeds fifteen thousand rupees.

(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.

(1A) Where in the case of the agreement [§4,16 of contract referred to in subsection (1) it 1958] appears to the Commissioner-General that, by reason of the fact that no consideration is set forth in such agreement or contract or the consideration so set forth is not capable of being valued in money or by reason of other circumstances, such agreement or contract is in reality for the purpose of bestowing a gift, he may call upon the parties to such agreement or contract to furnish proof to his satisfaction that such agreement or contract is wholly for the purpose of making a bona fide conveyance or transfer and not for the purpose of bestowing a gift. If no such proof is furnished or the proof furnished is in his opinion inadequate, the Commissioner-General shall deem such agreement or contract to be wholly for the purpose of bestowing a gift.

(1B) Where any pecuniary consideration or any consideration capable of being valued in money is set forth in the agreement or contract referred to in subsection (1) and it appears to the Commissioner-General that, by reason of the inadequacy of such consideration or other circumstances, such agreement or contract is not wholly for the purpose of making a conveyance or transfer, the Commissioner-General may call upon the parties to such agreement or contract to furnish proof to his satisfaction that such agreement or contract is wholly for the purpose of making a bona fide conveyance or transfer and not partly for the purpose of making a conveyance or transfer and partly for the purpose of bestowing a gift. If no such proof is furnished or the proof furnished is in his opinion inadequate, the Commissioner-General shall deem such agreement or contract to be partly for the purpose of making a conveyance or transfer and partly for the purpose of bestowing a gift.

(1C) The agreement or contract referred to in subsection (1) shall,-

(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-General, 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-General 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.

(1) Where in the case of an instrument of such transfer or assignment as is referred to in paragraph (3) of item 23 in Part I of Schedule A it appears to the Commissioner-General that, by reason of the fact that no consideration is set forth in such instrument or the consideration so set forth is not capable of being valued in money or by reason of other circumstances, the transfer or assignment is in reality for the purpose of bestowing a gift, he may call upon the parties to such instrument to furnish proof to his satisfaction that the transaction embodied in such instrument is a bona fide transfer or assignment and not a gift. If no such proof is furnished or the proof furnished is in his opinion inadequate, the Commissioner-General shall deem such transaction to be a gift, and such instrument shall be chargeable with duty accordingly.

(2) Where any pecuniary consideration or any consideration capable of being valued in money is set forth in an instrument of such transfer or assignment as is referred to in paragraph (3) of item 23 in Part I of Schedule A* and it appears to the Commissioner-General that, by reason of the inadequacy of such consideration or other circumstances, the transaction embodied in such instrument is not wholly a transfer or an assignment, the Commissioner-General may call upon the parties to such instrument to furnish proof to his satisfaction that such transaction is wholly a bona fide transfer or assignment and not partly a transfer or an assignment and partly a gift. If no such proof is furnished or the proof furnished is in his opinion inadequate, the Commissioner-General shall deem such transaction to be partly a transfer or an assignment and partly a gift, and such instrument shall be chargeable with duty accordingly.(Schedule omitted – See List of Enactments omitted from the Revised Edition)

(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-General, 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-General 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-General 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-General under section 35 is in his opinion one of a description chargeable with duty, and-

(2) When such instrument is in his opinion not chargeable with duty, the Commissioner-General 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-General to endorse-

(1) Any person dissatisfied with the opinion of the Commissioner-General 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-General under section 35, deliver to the Commissioner-General 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-General a fee of twenty rupees.

(3) The Commissioner-General 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-General 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-General 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-General 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-General.

(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-General 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-General, shall be deemed to be a single exhibit.

(1) The Commissioner-General may, where he thinks fit so to do, require any person in charge of a public office, before whom any instrument chargeable with duty is produced or comes in the performance of his functions-

(2) Where any person is under subsection (1) required to impound or examine any instrument, it shall be the duty of such person to impound or examine such instrument, as the case may be, and take such further steps as may be required by the Commissioner-General.

(3) Any officer of the Department of Inland Revenue who is authorized by the Commissioner-General in that behalf may, after giving due notice to any person in charge of a public office, examine any instrument in such public office in order to ascertain whether such instrument is stamped with the stamp of the value and description required by the law in force in Sri Lanka when such instrument was executed or first executed.

(4) For the purposes of section 38 and this section, in cases of doubt, the Minister 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-General 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-General 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-General, 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-General 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-General 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-General 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-General 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-General.

(1) When a copy of an instrument is sent to the Commissioner-General 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-General 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:-

(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-General 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-General under section 44 (2), the Commissioner-General shall, when he has dealt with it as provided by this section, return it to the impounding officer. Subsections (2), (6), (7) and (8) are repealed by Act No. 50 of 1971

(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-General, 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) If it is proved to the satisfaction of me Commissioner-General by claim duly made in writing within three years of the date of the payment of any stamp duty or penalty, that any person has paid any stamp duty or penalty in excess of the amount properly payable by him, such person shall be entitled to have refunded the amount so paid in excess:

Provided that, notwithstanding anything in section 59, nothing in this section shall operate to extend or reduce any time limit for appeal or repayment specified in any other section or to validate any objection or appeal which is otherwise invalid or to authorize the revision of any matter which has become final and conclusive.

(2) Where through death, incapacity, bankruptcy, liquidation, or other cause, a person who would but for such cause have been entitled to make a claim under subsection (1) is unable to do so, his executor, trustee, or receiver, as the case may be, shall be entitled to have refunded to him for the benefit of such person or his estate any stamp duty or penalty paid in excess within the meaning of subsection (1).

(1) If any instrument sent to the Commissioner-General 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 Sri Lanka and is not duly stamped, then, every person who, under the provisions of this Ordinance, is liable to pay the stamp duty or to bear the expenses of providing the proper stamps, as the case may be, shall be liable to pay to the Commissioner-General the stamp duty and any penalty attached to the non-payment of such duty;

Provided, however, that where the Commissioner-General, having regard to the circumstances of the case, is of the opinion that it is not practicable to recover such duty and penalty from such person, then, any other party to such instrument shall be liable to pay such duty and penalty.

(2) If any instrument chargeable with stamp duty is executed out of Sri Lanka, then every person in Sri Lanka who has been a party to the instrument shall be liable to pay to the Commissioner-General the stamp duty and any penalty attaching to the non-payment of such duty.

[* Subsection (3) is repealed by Act No. 50 of 1971.]

(4) When the duty and penalty, if any, payable in respect of any instrument have been recovered by the Commissioner-General 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.

(5) An executor of a deceased person shall be liable to do all such acts, matters and things as such deceased person would be liable to do under this Ordinance if he was alive, and shall be chargeable with stamp duty with which such deceased person would be chargeable if he was alive in respect of all instruments to which such deceased person was a party prior to the date of the death of such person:

Provided that-

(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 State, and recoverable as provided in subsection (2).

(2) If any amount shall be owing to the State under subsection (1), the Commissioner-General 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 the State 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 the State, and recoverable as provided in subsection (2).

(2) If, in the opinion of the Commissioner-General, any amount shall be owing to the State under subsection (1) the Commissioner-General 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-General under sections 55, 56, or 57, the Commissioner-General shall certify by endorsement on the instrument-

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

(1) Any person who is aggrieved by the amount required to be paid by the notice issued under section 46 (1) (b) may, within a period of thirty days after the date of the notice, appeal to the Commissioner-General against such amount:

Provided that the Commissioner-General, upon being satisfied that owing to absence from Sri Lanka, sickness or other reasonable cause, the appellant was prevented from appealing within such period, shall grant an extension of time for preferring the appeal.

(2) Every appeal shall be preferred by a petition in writing addressed to the Commissioner-General and shall set out the grounds of such appeal.

(3) Every petition of appeal which does not conform to the provisions of subsection (2) shall not be valid.

(4) On receipt of a valid petition of appeal, the Commissioner-General may cause further inquiry to be made by an Assessor, and if in the course of such inquiry an agreement is reached as to the matter specified in the petition of appeal, the necessary adjustments of the amount shall be made.

(5) Where no agreement is reached between the appellant and the Assessor in the manner provided in subsection (4), the Commissioner-General shall, by notice given in writing to the appellant, require the appellant to transmit to him within a period of thirty days after the date of such notice, a list of documents upon which, and the names and designations of persons on whose evidence, the appellant proposes to rely in support of his appeal.

(6) The Commissioner-General shall, as soon as may be after the transmission to him of the list referred to in subsection (5), give notice in writing to the appellant of his determination on the appeal.

(7) Before making his determination on any appeal, the Commissioner-General may, if he considers necessary to do so, by notice given in writing to the appellant-

(8) Where any appellant fails to comply with the requirements of any notice given under subsection (5) or subsection (7), the Commissioner-General shall dismiss the appeal:

Provided that if the appellant shall within a reasonable time after the dismissal of an appeal satisfy the Commissioner-General that he was prevented from complying with the requirements of such notice by reason of absence from Sri Lanka, sickness or other unavoidable cause, the Commissioner-General may vacate the order of dismissal.

(9) The Commissioner-General shall have power to summon any person whom he may consider reliable to give evidence respecting the appeal to attend before him and may examine such person on oath or otherwise. Any person so attending may be allowed by the Commissioner-General any reasonable expenses necessarily incurred by such person in so attending.

(10) Before making his determination on any appeal, the Commissioner-General may, if he considers it necessary to do so, by notice given in writing to any person require that person to produce for examination, or to transmit to the Commissioner-General within the period specified in such notice any such deeds, plans, instruments, books, accounts, trade lists, registers, cheques, paying-in-slips, auditors’ reports or other documents in his possession as may be specified in such notice.

(11) Where the Commissioner-General requires the appellant or his authorized representative to be heard on any matter relating to the appeal and specified in the notice given under subsection (5) the appellant shall not at such hearing be allowed-

(12) The Commissioner-General may in disposing of an appeal under this section confirm, reduce, increase or annul the amount against which such appeal was made-

(1) The decision of the Board of Review shall be final:

Provided that either the appellant or the Commissioner-General may make an application requiring the Board of Review to state a case on a question of law for the opinion of the Court of Appeal. Such application shall not be entertained unless it is made in writing and delivered to the Clerk to the Board of Review together with a fee of fifty rupees, within one month of the date of the decision of the Board of Review. If the decision of the Board of Review shall be notified to the Commissioner-General or to the appellant in writing, the date of the decision, for the purposes of determining the period within which either of such persons may require a case to be stated, shall be the date of the communication by which the decision is notified to him.

(2) The stated case shall set forth the facts relating to the decision of the Board of Review and the amount of the stamp duty or the penalty in dispute where such amount exceeds five thousand rupees, and the party requiring it shall transmit the case, when stated and signed, to the Court of Appeal within fourteen days after receiving the same.

(3) For the purpose of the application of the provisions of this Ordinance-

(4) At or before the time when he transmits the stated case to the Court of Appeal, the party requiring it shall send to the other party notice in writing to the effect that the case has been stated on his application and shall supply the other party with a copy of the stated case.

(5) The Court of Appeal may cause a stated case to be sent back for amendment, and thereupon the case shall be amended accordingly.

(6) The Court of Appeal shall hear and determine any question of law relating to the stated case and may in accordance with the decision of the Court upon such question confirm, reduce, increase, or annul the amount determined by the Board of Review or may remit the case to the Board of Review with the opinion of the Court thereon. When a case is so remitted by the Court the Board of Review shall revise the amount as the opinion of the Court may require.

(7) In any proceedings before the Court of Appeal under this section, the Court may make such order in regard to costs in the Court of Appeal and in regard to the sum paid under subsection (1) as to the Court may seem fit.

(1) The stamp duty or penalty required to be paid by notice issued under section 46 (1) (b) shall be paid in the manner directed in the notice or in any other notice given to the person liable to pay such duty or penalty, on or before a date specified in such notice. Subject to the provisions of subsection (2), any stamp duty or penalty not so paid shall be deemed to be in default and the person by whom such duty or penalty is payable or, where any such duty or penalty is payable by more than one person or by a partnership, then each of such persons and each partner in the partnership shall be deemed to be a defaulter for the purposes of this Ordinance.

(2) The amount of the stamp duty or the penalty shall be paid notwithstanding any appeal against the amount, unless the Commissioner-General orders that payment of such duty or penalty or any part thereof be held over pending the result of such appeal, and the amount of the duty or penalty or part thereof so held over shall be deemed not to be in default.

(3) Where the Commissioner-General is of opinion either that the stamp duty or the penalty or any part thereof held over under subsection (2) is likely to become irrecoverable, or that the appellant is unreasonably delaying the prosecution of his appeal, he may revoke any order made under that subsection and make such fresh order as the case may appear to him to require and the amount of any stamp duty or penalty not paid on or before such date as may be specified in the fresh order shall be deemed to be in default.

(4) Where, according to the final determination of an appeal under Chapter IVA, or upon any order made by the Commissioner-General, any stamp duty or penalty which has been held over under subsection (2) becomes payable or the amount required to be paid is increased, the Commissioner-General shall give to the appellant a notice in writing fixing a date on or before which any amount of stamp duty or penalty or balance of stamp duty or penalty shall be paid. Any amount not so paid shall be deemed to be in default.

(5) Where any amount of stamp duty or penalty is in default, the Commissioner- General may in his discretion order that a sum or sums not exceeding twenty per centum in all of the amount of stamp duty or penalty in default shall be added to such amount and recovered therewith.

(6) Where, upon the final determination of an appeal under Chapter PVA, any amount in default to which any sum or sums under subsection (5) has or have been added is reduced, then such sum or sums shall be calculated on the amount so reduced.

(i) such charge shall not extend to or affect any assets sold by the defaulter to a bona fide purchaser for value prior to the seizure of the same in accordance with the provisions of section 58G; and

(ii) as regards immovable property, the amount in default shall not rank in priority to any lease or encumbrance created bona fide for value and registered prior to the date of such seizure.

(1)

(2) Where any amount is in default and the Commissioner-General is of opinion that recovery by the means provided in subsection (1) is impracticable or inexpedient, he may issue a certificate to a District Court having jurisdiction in any district where the defaulter resides or in which any property movable or immovable owned by the defaulter is situate, containing particulars of such amount and the name or names of the person or persons by whom the amount is payable, and the Court shall thereupon direct a writ of execution to issue to the Fiscal authorizing and requiring him to seize and sell all or any of the property movable or immovable of the defaulter, or such part thereof as he may deem necessary for recovery of the amount, and the provisions of sections 226 to 297 of the Civil Procedure Code shall, mutatis mutandis, apply to such seizure and sale.

(3) Whenever the Commissioner- General issues a certificate under this section, he shall forthwith issue to the defaulter, whether resident or non-resident, a notification thereof by personal service, registered letter sent through the post, or telegraph; but the non-receipt of such notification by the defaulter shall not invalidate proceedings under this section.

(1) Where the Commissioner-General is of the opinion in any case that recovery of the amount in default by seizure and sale is impracticable or inexpedient, or where the full amount in default has not been recovered by seizure and sale, he may issue a certificate containing particulars of such amount and the name and last known place of business or residence of the defaulter to a Magistrate having jurisdiction in the division in which such place is situate. The Magistrate shall thereupon summon such defaulter before him to show cause why further proceedings for the recovery of the amount should not be taken against him, and in default of sufficient cause being shown, the amount in default shall be deemed to be a fine imposed by a sentence of the Magistrate on such defaulter for an offence punishable with a fine only or not punishable with imprisonment, and the provisions of subsection (1) of section 291 (except paragraphs (a), (d) and (i) thereof) of the Code of Criminal Procedure Act relating to default of payment of a fine imposed for such offence shall thereupon apply, and the Magistrate may make any direction which, by the provisions of that subsection, he could have made at the time of imposing such sentence.

(2) The correctness of any statement in a certificate issued by the Commissioner for the purposes of subsection (1) shall not be called in question or examined by the Magistrate in any proceeding under this section and accordingly nothing in that subsection shall authorize a Magistrate to consider, or decide, the correctness of any statement in such certificate or to postpone or defer such proceeding by reason of the fact that an appeal is pending against the amount in default.

(3) Nothing in subsections (2) to (5) of section 291 of the Code of Criminal Procedure Act shall apply in any case referred to in subsection (1) of this section.

(4) In any case referred to in subsection (1) in which the defaulter is sentenced to imprisonment in default of payment of the fine deemed by that subsection to have been imposed on him, the Magistrate may allow time for the payment of the amount of the said fine or direct payment of that amount to be made by installments.

(5) The court may require bail to be given as a condition precedent to allowing time under subsection (1) for showing cause as therein provided or under subsection (4) for the payment of the fine; and the provisions of Chapter XXXIV of the Code of Criminal Procedure Act shall apply where the defaulter is so required to give bail.

(6) Where payment in installments is directed under subsection (4) and default is made in the payment of any one installment the same proceedings may be taken as if default has been made in payment of all the installments then remaining unpaid.

(7) In any proceedings under subsection (1), the certificate of the Commissioner- General shall be sufficient evidence that the amount has been duly required to be paid and is in default, and any plea that the amount is excessive, incorrect, or under appeal shall not be entertained :

Provided that where any person proceeded against has not appealed within the proper time against the amount and alleges that the amount is in excess of the sum which would have been charged if he had so appealed, the court may adjourn the matter for a period not exceeding thirty days to enable such person to submit to the Commissioner-General his objection to the amount.

(8) The Commissioner-General shall, notwithstanding the provisions of section 58D, consider any objection made under subsection (7) and give his decision thereon, which shall be final, and shall be certified by him to the Magistrate, and proceedings under this section shall thereupon be resumed to enforce payment of the amount as reduced or confirmed under such decision. Where no objection has been made to the Commissioner-General within the period for which the matter was adjourned under that subsection, the Commissioner-General shall issue a certificate to that effect and proceedings under this section shall be resumed to enforce payment of the amount.

(1) Where any amount is in default and the Commissioner-General is of opinion that the recovery of such amount or any part thereof by the means provided in section 58G or section 58H is impracticable or inexpedient, he may make an application by petition in writing to the District Court having jurisdiction in the district where the defaulter resides or in which any immovable property belonging to the defaulter and specified in such petition is situate for an order of that Court that such property shall vest in the State.

Every such petition shall specify-

There shall be attached to every such petition a certificate under the hand of the Commissioner-General that the amount specified in the petition is due from the defaulter.

(2) Whenever the Commissioner-General makes an application to a District Court under this section, he shall forthwith issue to the defaulter, whether resident or non-resident, a notification thereof by personal service, registered letter sent through the post or telegraph; but the non-receipt of any such notification by the defaulter shall not invalidate proceedings under this section.

(3) Within ten days after the date on which an application is made to a District Court by the Commissioner-General under subsection (1), the Commissioner-General shall cause to be published in the Gazette a notice setting out the petition made in respect of such application.

(4) No person shall, on or after the date on which a notification was issued to the defaulter under subsection (2) of an application made by a petition in writing to a District Court for the vesting of any immovable property, alienate to any other person-

and any alienation of that property or those rights to any other person shall be null and void:

Provided that the preceding provisions of this subsection shall not be deemed to apply to any property or portions of any property which is or are not vested under this section in the State by an order of the District Court.

In this subsection, ” alienate “, when used with reference to any immovable property or rights in respect of that property, includes an alienation, or a lease, hypothecation, transfer or disposal in any manner whatsoever of such property or such rights, and ” alienation ” shall be construed accordingly.

(5) Any person who wishes to prefer a claim to any immovable property in respect of which a notice under subsection (3) has been published in the Gazette may, not later than fourteen days after the date of publication of such notice, apply by petition in writing to the District Court to which the application was made by the Commissioner- General under subsection (1), to have such property declared as not liable to vesting in the State. Every such petition shall set out the right, title or interest of the petitioner to or in such property.

(6) The District Court to which the application was made by the Commissioner- General under subsection (1) shall, after the expiry of the period of fourteen days referred to in subsection (5), proceed in a summary manner to investigate and determine such claims as have been made in respect of the immovable property proposed to be vested in the State by such application. At the end of the investigation of a claim-

(7) If at the expiry of fourteen days referred to in subsection (5), no claim has been made by any person under that subsection, the Court shall make order that the immovable property specified in the application made by the Commissioner- General under subsection (1) shall vest in the State.

(8) Where any immovable property is vested in the State under this section by an order of the District Court, such property shall vest in the State subject to such encumbrances and charges as were existing on the date on which the application was made by the Commissioner-General.

(9) Nothing in the preceding provisions of this section shall be deemed to empower the District Court to which an application is made by the Commissioner-General under subsection (1) to call in question or examine in any investigation under this section the correctness of any statement relating to particulars of the amount in default in such application or in the certificate referred to in that subsection or to postpone or defer such investigation by reason only of the fact that an appeal is pending against the amount in default.

(10) An order under this section vesting in the State any immovable property of a defaulter may, upon an application made by the Commissioner-General be revoked by the District Court by which such order was made.

(11) No application for the revocation of an order vesting in the State any immovable property of a defaulter shall be made to the District Court by the Commissioner-General except in any of the following cases:-

(12) Where an order under this section vesting in the State any immovable property of any person is revoked under subsection (10), such person shall not be entitled to claim any compensation for any loss or damage which he may have suffered as a result of, or in consequence of, the order vesting such immovable property in the State having been made; and no action against the State for compensation for any loss or damage shall be entertained by any court.

(13) At any time after any immovable property is vested in the State under the provisions of this section, such time being not less than six months after the date of vesting, the Commissioner-General shall cause the market value of such property to be determined by the Chief Valuer of the Government or by a Valuer of the Valuation Department who is authorized in that behalf by the Chief Valuer of the Government.

(14) Where the market value of any immovable property vested in the State by an order of the District Court under this section is more than the amount which the defaulter has to pay, the Commissioner- General, in his discretion, may-

(15) Every sale under this section of any immovable property shall be-

(16) The sum realized by the sale of any immovable property under this section shall be applied in the following order:-

(17)

(18) Where an order under this section vesting in the State any immovable property of any person is revoked under subsection (10), the State shall be liable to account to such person for the income derived from such property during the period for which such property was vested in the State and to pay -such income to such person less the expenses incurred in maintaining such property during that period.

(19) Where any immovable property is sold under this section, the Commissioner- General shall in the name and on behalf of the State be entitled to execute the instrument of transfer of such property to the purchaser.

(20) Any person who is aggrieved by an order of the District Court under subsection (6) may appeal therefrom to the Court of Appeal, and the provisions of the Civil Procedure Code relating to appeals from the District Court to the Court of Appeal shall apply in relation to such appeal.

(21) In this section-

” immovable property w means any land (other than land subject to a life interest or trust) and includes things attached to the earth or permanently fastened to anything attached to the earth; and

” market value “, in relation to any immovable property, means the value which such property will fetch in the open market.

(1) Where the amount of stamp duty or penalty payable by any person is in default and it appears to the Commissioner- General to be probable that any person-

(2) Any person who has made any payment in pursuance of this section shall be deemed to have acted under the authority of the person by whom the amount was payable and of all other persons concerned, and is hereby indemnified in respect of such payment against all proceedings, civil or criminal, notwithstanding the provisions of any written law, contract, or agreement.

(3) Any person to whom a notice has been given under subsection (1) who is unable to comply therewith owing to the fact that the moneys in question do not come into his hands or become due from him within the period referred to in subsection (1) shall within fourteen days of the expiration thereof give notice in writing to the Commissioner-General acquainting him with the facts.

(4) Where any person to whom a notice has been given under subsection (1) is unable to comply therewith and has failed to give notice to the Commissioner-General as provided in subsection (3), or where such person has deducted or could have deducted the amount to which the notice relates or any part thereof and has not paid over as directed by the Commissioner-General such amount or part thereof within fourteen days after the expiration of the period referred to in subsection (1), such person shall, if he is an individual be liable, or where such person is a company or a body of persons, whether corporate or unincorporate, the secretary, manager or other principal officer of such company or body shall be personally liable, for the whole of the amount which such person has been required to deduct, and such amount shall be recovered from such individual, secretary, manager or other principal officer by all means provided in this Ordinance.

(5) For the purposes of this section, the expression ” defaulter ” shall be deemed to include the agent of a person who is in default and the provisions of this section shall apply in any case where the amount which would have been payable by any person if he were alive is in default; and for the purposes of the application of those provisions in any such case, the expression ” defaulter” in subsection (1) means-

(1) Where the Commissioner- General is of opinion that any person is about to or likely to leave Sri Lanka without paying the amount of stamp duty or penalty required to be paid, he may issue a certificate containing particulars of such amount and the name of such person to a Magistrate, who shall, on receipt thereof, issue a direction to the Inspector-General of Police to take such measures as may be necessary to prevent such person from leaving Sri Lanka without paying the amount or furnishing security to the satisfaction of the Commissioner-General for payment thereof.

(2) At the time of issue of his certificate to the Magistrate, the Commissioner- General shall issue to such person a notification thereof by personal service, registered letter sent through the post, or telegraph; but the non-receipt of any such notification by such person shall not invalidate proceedings under this section.

(3) Production of a certificate signed by the Commissioner-General or an officer authorized in that behalf by such Commissioner-General stating that the amount has been paid or that security has been furnished or that the amount has been . paid to a police officer in charge of a police station, shall be sufficient authority for allowing such person to leave Sri Lanka.

(1) Notwithstanding anything in the Companies Ordinance*, where any private company is wound up and where any amount which that company is liable to pay, whether such liability arose before, or in the course of, or after, its liquidation, cannot be recovered, then, every person who was a director of the company at any time during the period in which such amount became liable to be paid shall be jointly and severally liable for the payment of such amount unless he proves that the default in payment of the amount cannot be attributed to any gross neglect, misfeasance or breach of duty on his part in relation to the affairs of the company.

(2) In this section, the expression ” private company” shall have the same meaning as in the Companies Ordinance.(Repealed and replaced by the Companies Act, No. 17 of 1982.)

(1) Subject to such rules as may be made by the Minister, as to the evidence to be required, or the inquiry to be made, the Commissioner-General 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-General 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, the Commissioner-General 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-General 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) in contravention of the provisions of section 34, fails or neglects to give a receipt, or

(b) with intent to defraud the Government of any duty, upon a payment of money or delivery of property amounting to one hundred rupees or upwards in amount or value, gives a receipt for an amount or value less than one hundred rupees, or separates or divides the money or property paid or delivered, shall be punishable with fine which may extend to one hundred rupees.

(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, shall be punishable with fine which may extend to one thousand rupees.

(1) The Commissioner-General may stay any such prosecution or compound any such offence.

(2) The amount of any such composition shall be recoverable in the manner provided in Chapter FVB.

(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, 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 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-General 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-General 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-General 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-General 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.

(1) Where any person making payments to employees in respect of their employment satisfies the Commissioner- General that it is impracticable or inexpedient for such employees to give duly stamped receipts under section 34 in respect of such payments, the Commissioner-General may, by notice in writing, direct such person-

(2) Notwithstanding anything in section 34, it shall not be necessary for any person receiving any payment referred to in a notice under subsection (1) to give in respect of that payment a duly stamped receipt.

(3) Any person who fails to comply with any direction given in a notice issued to him under subsection (1), shall be 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 failure continues.

(4) 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.

(1) Every notice to be given by the Commissioner-General or an Assessor under this Ordinance shall bear the name of the Commissioner-General or Assessor, as the case may be, and every such notice shall be valid if the name of the Commissioner-General or Assessor is duly printed or signed thereon.

(2) Every notice given by virtue of this Ordinance may be served on a person either personally or by being delivered at, or sent by post to, his last known place of abode or any place at which he is or was carrying on business.

(3) Any notice sent by post shall be deemed to have been served on the day succeeding the day on which it would have been received in the ordinary course by post.

(4) In proving service by post, it shall be sufficient to prove that the letter containing the notice was duly addressed and posted.

(5) Every name printed or signed on any notice or signed on any certificate given or issued for the purposes of this Ordinance, which purports to be the name of the person authorized to give or issue the same, shall be judicially noticed.

(1) No notice, certificate or other proceeding purporting to be in accordance with the provisions of this Ordinance shall be quashed, or deemed to be void, or voidable, for want of form, or be affected by reason of a mistake, defect or omission therein, if the same is in substance and effect in conformity with or according to the intent and meaning of this Ordinance, and if the person to whom such notice or certificate is given or intended to be given or affected thereby is designated therein according to common intent and understanding.

(2) Without prejudice to the generality of subsection (1), a notice shall not be impeached or affected by reason of a mistake therein as to the name or surname of the person chargeable with the amount, if the notice is duly served on the person intended to be charged.

(1) who is authorized in writing by a person to act on his behalf for the purposes of this Ordinance and who is-

(2) who is authorized in writing from time to time, by a person to act on his behalf for the purposes of this Ordinance, and who, being an individual registered as an auditor under the Companies’ (Auditors) Regulations, is approved by the Commissioner-General:

(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;