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STAMPS |
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AN ORDINANCE TO AMEND AND CONSOLIDATE THE LAW RELATING TO STAMPS.
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Ordinance Nos, |
22 of 1909 |
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16 of 1917 |
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8 of 1919 |
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10 of 1919 |
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32 of 1919 |
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19 of 1927 |
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25 of 1927 |
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11 of 1928 |
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4 of 1929 |
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18 of 1930 |
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18 of 1932 |
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4 of 1934 |
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18 of 1934 |
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57 of 1935 |
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1 of 1938 |
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47 of 1941 |
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15 of 1942 |
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3 of 1946 |
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33 of 1946 |
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Law Nos, |
21 of 1973 |
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28 of 1975 |
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Act Nos, |
4 of 1948 |
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26 of 1948 |
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16 of 1951 |
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9 of 1952 |
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32 of 1952 |
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15 of 1956 |
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16 of 1958 |
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21 of 1959 |
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11 of 1963 |
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3 of 1968 |
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49 of 1968 |
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24 of 1969 |
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50 of 1971 |
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43 of 1982 |
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[1st January
, 1910 ]
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Short title.
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1. This Ordinance may be cited as the Stamp Ordinance.(The Stamp Ordinance shall not apply to instruments executed on or after 1st January, 1983-See section 68 of the Stamp Duty Act, No, 43 of 1982.)
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1A. For the purpose of administering this Ordinance, there may be appointed to the Department of Inland Revenue “such number of officers as may be necessary.
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Instruments chargeable with duty.
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2.
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(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:-
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(a) every instrument mentioned in that Schedule! which, not having been previously executed by any person, is executed in Sri Lanka ; and every document mentioned in Parts II, III, IV and V of that Schedule* which, not having been previously executed, issued, presented, made, or filed, is executed, issued, presented, made or filed in Sri Lanka;
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(b) every bill of exchange, cheque, or promissory note drawn or made out of Sri Lanka and accepted or paid, or presented for acceptance or payment, or endorsed, transferred, or otherwise negotiated in Sri Lanka; and
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(c) every instrument (other than a bill of exchange, cheque, or promissory note) mentioned in that Schedule* which, not having been previously executed by any person, is executed out of Sri Lanka, relates to any property situate, or to any matter or thing done or to be done, in Sri Lanka and is received in Sri Lanka:
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Provided that no duty shall be chargeable in respect of-
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(i) any instrument executed by, or on behalf of, or in favour of, the Government in cases where, but for this exemption, the Government would be liable to pay the duty chargeable in respect of such instrument;
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(ii) any such instrument executed by, or on behalf of, or in favour of, the Government of any country in respect of which an Order under subsection (2) is in force as is an instrument to which that Order applies;
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(iii) any instrument for the sale, transfer, or other disposition, either absolutely or by way of mortgage or otherwise, of any ship or vessel, or any part, interest, share, or property of or in any ship or vessel registered in Sri Lanka under the Merchant Shipping Act.
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(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,
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Power of Commissioner General to refund duty in certain circumstances.
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(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.
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Amendment or variation of Schedules to this ordinance
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2A.
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(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.
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(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.)
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Power to direct use of special stamps and to authorize banks to compound for stamps on cheques and companies to compound for duty on share certificates.
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3.
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(1)
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(a) The Minister may by a Notification published in the Gazette require that special stamps, whether chargeable under this Ordinance or any other enactment, be used for particular instruments, and in like manner any such Notification may alter or repeal; and it shall not be lawful for any person to use stamps other than the special stamps so provided for such particular instruments.
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(b) The Commissioner-General may authorize any bank doing business in Sri Lanka to compound for the payment of duty on unstamped cheques, on the following conditions:-
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(i) that the said cheques be drawn and issued on forms to be supplied by the said bank;
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(ii) that the said bank do levy upon or charge to the person to whom such cheques are issued the stamp duty mentioned in the Schedule A* ;
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(iii) that the said bank do pay every half-year to the Commissioner-General the amount due and collected therein as duties on such unstamped cheques, less two rupees and fifty cents per centum to be allowed to such bank as discount on the sum so due and collected as stamp duties; and
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(iv) payment of the said dues shall be secured by a bond to be entered into by every such bank as aforesaid, which bond shall be substantially in the form, and with the conditions set forth, in the Schedule B*.
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Cheques drawn and issued on forms so supplied by such bank as aforesaid may be paid without bearing on them the stamp mentioned in Schedule A.(Schedules omitted-See List of Enactments omitted from the Revised Edition. Repeated and replaced by the Companies Act, No. 17 of 1982.)
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(c) The Commissioner-General may authorize any joint stock company incorporated under the Companies Ordinance , or any enactment for the time being in force relating to the incorporation and registration of joint stock companies in Sri Lanka, to compound for the payment of stamp duty payable on share certificates specified in Schedule A* on the following conditions:-
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(i) that in the case of a joint stock company now incorporated issuing new certificates upon a new issue of shares out of capital, whether original or increased, the company shall forward to the Commissioner-General a statement signed by the secretary or a director of the company setting forth the total face value of the shares forming the new issue, and shall pay to the Commissioner-General a duty of one rupee for every one hundred rupees of the said new issue ;
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(ii) that in the case of a joint stock company hereafter incorporated the company shall forward to the Commissioner-General a statement signed by the secretary or a director of the company setting forth the total face value of the shares forming any issue, and shall pay to the Commissioner-General a duty of one rupee for every one hundred rupees of such issue;
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(iii) that in the case of a joint stock company creating or issuing debenture stock, the company shall forward to the Commissioner-General a statement signed by the secretary or a director of the company setting forth the total value of the debenture stock to be created and issued, and shall pay to the Commissioner-General the same duty as on a bond for an amount equivalent to the total face value of the debenture stock created or issued by the company;
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(iv) that every share certificate issued under the above conditions shall bear on its face a certificate under the hand of the secretary of the company that the stamp duty has already been paid in pursuance of this section. Such certificate shall be as nearly as circumstances permit in the following form :-
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It is hereby certified that the stamp duty payable in respect of the capital issued has been commuted in terms of section 3 of the Stamp Ordinance.
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(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.
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Instruments relating to several distinct matters.
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4. Any instrument comprising or relating to several distinct matters shall be chargeable with the aggregate amount of the duties with which separate instruments, each comprising or relating to one of such matters, would be chargeable under this Ordinance.
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Other enactments saved.
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5. Nothing herein contained shall be held to affect instruments required to be stamped or instruments exempted from stamp duty according to other enactments now in force, the provisions of which are not hereby expressly repealed or altered :
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Provided that whenever it is enacted by any enactment that stamp duty shall be chargeable on the issue of any license, such license shall be issued in foil and counterfoil, and the stamp denoting the amount of duty payable shall be affixed to the counterfoil, any provision in such enactment to the contrary notwithstanding.
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(B) OF STAMPS AND THE MODE OF USING THEM |
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Duties how to be paid.
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6.
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(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-
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(a) according to the provisions herein contained; or
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(b) when no such provision is applicable thereto, as the Minister may by rule direct.
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(2) The rules made under subsection (1) may, among other matters, regulate-
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(a) in the case of each kind of instrument, the description of stamps which may be used ;
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(b) in the case of instruments stamped with impressed stamps, the number of stamps which may be used.
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Cancellation of stamps.
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7.
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(1) Whoever-
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(a) affixes any adhesive stamp to any instrument chargeable with duty which has been executed by any person shall, when affixing such stamp, cancel the same so that it cannot be used again ; and
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(b) executes any instrument on any paper bearing an adhesive stamp shall, at the time of execution, unless such stamp has been already cancelled in manner aforesaid, cancel the same so that it cannot be used again.
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(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.
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(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.
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Duty of notaries with regard to stamps on instruments attested by them, and of Government and bank officials to examine instruments as regards stamps.
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8.
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(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.
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(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.
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(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:
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Provided that it shall not have been previously so cut;
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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.
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No instrument requiring a stamp to be issued by any public officer unless the duty is first paid.
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9. In any case in which any person is entitled or required to demand, receive, or obtain from any public officer in the service of the Government of Sri Lanka, in virtue of his office, or in which any such public officer is required or authorized to issue to any person any instrument whatever which is required to bear a stamp, it shall be lawful for such public officer, and he is hereby required, to refuse to issue or grant to, and to withhold from, such person any such instrument until the proper amount of stamp duty payable thereon shall first have been paid by such person in respect of such instrument, or until a stamp of the proper amount of duty shall have been supplied and delivered by him to such public officer.
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Instruments stamped with be written.
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10. Every instrument written upon paper stamped with an impressed stamp shall be written in such manner that the stamp may appear on the face of the instrument and cannot be used for or applied to any other instrument.
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Commissioner-General may denote by endorsement the duty payable on an instrument.
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11. Where the duty with which an instrument is chargeable, or its exemption from duty, depends in any manner upon the duty actually paid in respect of another instrument, the payment of such last-mentioned duty shall, if application is made in writing to the Commissioner-General for that purpose and on production of both the instruments, be denoted upon such first-mentioned instrument by endorsement under the hand of the Commissioner-General, or in such other manner (if any) as the Minister may by rule prescribe.
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Only one with instrument to be on same stamp.
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12. No second instrument chargeable duty shall be written upon a piece of stamped paper upon which an instrument chargeable with duty has already been written;
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Provided that nothing in this section shall prevent any endorsement which is duly stamped or is not chargeable with duty being made upon any instrument for the purpose of transferring any right created or evidenced thereby, or of acknowledging the receipt of any money or goods the payment or delivery of which is secured thereby or for extending the time for payment of a bill of exchange or promissory note.
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Instrument written contrary to sections 10 or 12 deemed unstamped.
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13. Every instrument written in contravention of section 10 or section 12 shall be deemed to be unstamped.
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(C) OF THE TIME OF STAMPING INSTRUMENTS |
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Instruments executed m Sri Lanka.
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14. Save where express provision to in this Ordinance enacted, all instruments chargeable with duty and executed by any person in Sri Lanka shall be stamped before or at the time of execution.
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Impressed stamps.
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15. The following instruments, if stamped with impressed stamps denoting the proper duty payable thereon, shall, whether executed before or after the 19th day of November, 1930, be deemed, as and from the date of their being so stamped, to have been duly stamped within the meaning of this Ordinance;-
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(a) share transfers executed in Sri Lanka, which are so stamped within one month after the execution thereof; and
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(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.
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Instruments other than bills, cheques, and notes executed out of Sri Lanka.
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16. Every instrument chargeable with duty executed only out of Sri Lanka by all , or by any of the parties thereto, and not being a bill of exchange, cheque, or promissory note, may be stamped within. one month after it has been first received in Sri Lanka, and every such instrument so stamped shall have the like force and validity in law as if it had been so stamped when the instrument was executed.
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Bills, cheques, and notes drawn out of Sri Lanka.
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17. The first holder in Sri Lanka of any bill of exchange, cheque, or promissory note drawn or made out of Sri Lanka shall, before he presents the same for acceptance or payment, or endorses, transfers, or otherwise negotiates the same in Sri Lanka, affix thereto the proper stamp and cancel the same;
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Provided that-
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(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 ;
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(ii) nothing contained in this proviso shall relieve any person from any penalty incurred by him for omitting to affix or cancel a stamp.
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(D) PROVISIONS RELATING TO THE CHARGEABILITY OF INSTRUMENTS TO DUTY |
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Conversion.
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18. Where an instrument is chargeable with ad valorem duty in respect of any money expressed in any currency other than that of Sri Lanka, such duty shall be calculated on the value of such money in the currency of Sri Lanka according to the current rate of exchange on the day of the date of the instrument or, where the instrument is a bill of exchange, cheque, or promissory note drawn or made out of Sri Lanka, on the day on which the instrument is stamped in Sri Lanka.
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Stock and with marketable securities how be valued.
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19. Where an instrument is chargeable ad valorem duty in respect of any stock or share or of any marketable or other to security, such duty shall be calculated on the value of such stock, share or security according to the average price or the value thereof on the day of the date of the instrument.
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Bond or mortgage for future advances, how to be charged.
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20. A bond or mortgage for the payment or repayment of money to be lent, advanced, or paid, or which may become due upon an account current, either with or without money previously due, shall be charged, where the total amount secured or to be ultimately recoverable is in any way limited, with the same duty as a bond or mortgage for the amount so limited. Where such total amount is unlimited, the bond or mortgage shall be available for such an amount only as the ad valorem duty paid thereon extends to cover.
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Bond or mortgage to secure the payment of annuity, &c.
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21. A bond or mortgage to secure the payment of any annuity or periodical payments, by way of repayment or in satisfaction or discharge of any loan, advance or payment intended to be so repaid, satisfied or discharged, shall be chargeable with the same duty as a similar bond or mortgage to secure the payment of the sum of money so lent, advanced or paid.
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Instrument connected with mortgage of stock, &c, to be chargeable as agreement.
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22.
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(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.
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(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.
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(3) A release or discharge of any such instrument shall only be chargeable with a like duty.
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Instruments reserving interest.
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23. Where interest is expressly made payable by the terms of an instrument, such instrument shall not be chargeable with duty higher than that with which it would have been chargeable had no mention of interest been made therein.
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How transfer in consideration of debt, or subject to future payments, &c. to be charged.
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24. Where any property is transferred to any person in consideration, wholly or in part, of any debt due to him, or subject either certainly or contingently to the payment or transfer of any money or stock, whether being or constituting a charge or encumbrance upon the property or not, such debt, money, or stock is to be deemed the whole or part, as the case may be, of the consideration in respect whereof the transfer is chargeable with ad valorem duty:
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Provided that in the case of a Fiscal’s sale, the duty shall be calculated on the consideration expressed for the transfer.
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In the case of a sale of property subject to a mortgage or other incumbrance, any unpaid mortgage money or money charged, together with the interest (if any) due on the same, shall be deemed to be part of the consideration for the sale.
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How consideration consisting of periodical payments to be charged.
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25.
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(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.
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(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.
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(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.
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Instrument for the creation or sale of an annuity.
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26.
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(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-
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(a) where the annuity or periodical payment is for a definite period not exceeding twenty years so that the total amount to be paid can be previously ascertained, such total amount;
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(b) where the annuity or periodical payment is for a definite period exceeding twenty years, or in perpetuity, or for any indefinite period not terminable with life, the total amount which according to the terms of such instrument will or may be payable during the period of twenty years calculated from the date on which the first payment becomes due;
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(c) where the annuity or periodical payment is for a period terminable with any life or lives, the amount which will or may according to the terms of such instrument be payable during the period of twelve years calculated from the date on which the first payment becomes due.
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(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.
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Stamp where value of subject-matter is indeterminate.
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27. Where the amount or value of the subject-matter of any instrument chargeable with ad valorem duty cannot be, or (in the case of an instrument executed before the commencement of this Ordinance) could not have been, ascertained at the date of its execution or first execution, nothing shall be claimable under such instrument more than the highest amount or value for which, if stated in an instrument of the same description, the stamp actually used would, at the date of such execution, have been sufficient:
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Provided that, in the case of the lease of a mine in which royalty or a share of the produce is received as the rent or part of the rent, it shall be sufficient to have estimated such royalty or the value of such share, for the purpose of stamp duty, at twenty thousand rupees a year; and the whole amount of such royalty or share, whatever it may be, shall be claimable under such lease ;
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Provided also that, where proceedings have been taken in respect of an instrument under sections 35 or 47, the amount certified by the Commissioner-General shall be deemed to be the stamp actually used at the date of execution.
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Facts affecting duty to be set forth in instrument.
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28. The consideration (if any) and all other facts and circumstances affecting the chargeability of any instrument with duty, or the amount of the duty with which it is chargeable, shall be fully and truly set forth therein.
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Power of Commissioner-General to ascertain true consideration, true character of conveyance or transfer and revalue.
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29.
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(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-
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(a) that the consideration so expressed did not wholly pass at the time of execution of the instrument; or
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(b) that by reason of the inadequacy of the sum paid as consideration or other circumstances, a valuable benefit was conferred on the person to whom the property was conveyed or transferred, 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-General, inadequate, the Commissioner-General shall, according to the circumstances of the case, deem the transaction embodied in such instrument to be-
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(i) a conveyance or transfer for a consideration partly pecuniary and partly other than pecuniary, or
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(ii) partly a conveyance or transfer for a pecuniary consideration and partly a gift.
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(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.
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(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-
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(a) if such transaction does not relate to any property or business referred to in paragraph (3) of item 23 in Part I of Schedule A*, be chargeable with duty equal to the aggregate of-
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(i) the duty, in respect of such part of that transaction as is deemed by the Commissioner-General to be a conveyance or transfer for a pecuniary consideration, chargeable as on a conveyance or transfer for the pecuniary consideration set forth in such instrument, and
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(iii) the duty, in respect of such part of that transaction as is deemed by the Commissioner-General to be a gift, chargeable as on a gift of a value equal to the difference between the value of the property to which that transaction relates and the amount of the pecuniary consideration set forth in such instrument; and
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(b) if such transaction relates to any property or business referred to in paragraph (2) of item 23 in Part I of Schedule A*, be chargeable with duty in accordance with the provisions of paragraph (2) of the proviso to paragraph (3) of the aforesaid item 23.
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(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.
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(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.
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(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.
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Directions as of certain conveyances.
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30.
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(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:
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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.
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(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.
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(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.
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(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:
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Provided that the duty on such last-mentioned conveyance shall in no case be less than one rupee.
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(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.
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Certain agreements to be chargeable with a valorem duty.
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31.
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(1) Any agreement or contract for the conveyance or transfer- or share in any
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(b) of any other property except-
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(i) immovable property, or
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(ii) property locally situate out of Sri Lanka, or
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(iii) goods, wares or merchandise, or
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(iv) stocks, shares or marketable securities, or
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(v) any ship or vessel or part interest, share or property of, or in, any ship or vessel,
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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.
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(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.
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(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.
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(1C) The agreement or contract referred to in subsection (1) shall,-
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(a) if such agreement or contract is deemed by the Commissioner-General to be wholly for the purpose of bestowing a gift, be charged with such duty, to be paid by the grantee or transferee, as is chargeable,-
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(i) where such agreement or contract is in respect of a business, on a gift of a value equal to the net value of that business added to the amount, including accrued interest, due on mortgage debts charged on the immovable property of that business;
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(ii) where such agreement or contract is in respect of a share in a business, on the net value of that share added to such part of the amount, including accrued interest, due on mortgage debts charged on the immovable property of that business as is proportionate to that share; and
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(iii) where such agreement or contract is in respect of other property, on a gift of a value equal to the value of that property;
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(b) if such agreement or contract is in respect of property referred to in any of the sub-paragraphs (i) to (vi) of paragraph (3) of item 23 in Part I of Schedule A* and is deemed by the Commissioner-General to be partly for the purpose of making a conveyance or transfer and partly for the purpose of bestowing a gift, be charged with duty equal to the aggregate of-
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(i) the duty which is in respect of such part of the agreement or contract as is deemed by the Commissioner-General to be for the purpose of making a conveyance or transfer and which shall be chargeable under paragraph (3) of item 23 in Part I of Schedule A* on a transfer of such property for the consideration set forth in the agreement or contract, and
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(ii) the duty which is in respect of such part of the agreement or contract as is deemed by the Commissioner-General to be for the purpose of bestowing a gift and which shall be chargeable as on a gift of a value equal to the difference between the amount on which duty would be chargeable if the agreement or contract were wholly for the purpose of making a conveyance or transfer and the amount or value of the consideration set forth in the agreement or contract; and
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(c) if such agreement or contract is in respect of a business and is deemed by the Commissioner-General to be partly for the purpose of making a conveyance or transfer and partly for the purpose of bestowing a gift, be charged with duty equal to the aggregate of-
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(i) the duty which is in respect of such part of the agreement or contract as is deemed by the Commissioner-General to be for the purpose of making a conveyance or transfer and which shall be equal to such part of the amount of the duty chargeable under sub-paragraph (vii) of paragraph (3) of item 23 in Part I of Schedule A* on a transfer of the said business as bears to that amount the same proportion as the amount or value of the consideration set forth in the agreement or contract bears to the aggregate of the net value of the said business and the amount, including accrued interest, due on mortgage debts charged on the immovable property of the said business, and
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(ii) the duty which is in respect of such part of the agreement or contract as is deemed by the Commissioner-General to be for the purpose of bestowing a gift and which shall be chargeable as on a gift of a value equal to the difference between-
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(a) the aggregate of the net value of the said business and the amount, including accrued interest, due on mortgage debts charged on the immovable property of the said business, and
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(b) the amount or value of the consideration set forth in the agreement or contract.
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(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,
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(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.
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(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.
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(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.
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How instruments effecting exchanges are to be stamped.
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32. Where there are several instruments of conveyance or transfer for effecting an exchange of property, the instrument first executed shall be stamped with the duty, if any, with which such exchange is chargeable, and all the other instruments shall be stamped with a duty of one rupee:
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Provided, however, that the preceding provisions of this section shall not apply to any such subsequent instrument executed after a period of three months from the date on which the first instrument was executed.
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Power of Commissioner-General to determine true nature of transaction embodied in an instrument of such transfer or assignment as is referred to in paragraph (3) of item 23 in Pan I of Schedule A.
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32A.
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(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.
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(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)
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Duties by whom payable.
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33. In the absence of an agreement to the contrary, the expense of providing the proper stamps shall be borne-
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(a) in the case of any of the following instruments, namely:-
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(ii) agreement to mortgage,
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(xiii) security bond or mortgage bond,
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(xiv) transfer of shares in an incorporated company or other body corporate,
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(xv) transfer of debentures, being marketable securities, whether the debenture is liable to duty or not,
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(xvi) transfer of any interest secured by a bond, mortgage deed, mortgage bond, or policy of insurance, by the person drawing, making, or executing such instrument;
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(b) in the case of a policy of insurance, by the person effecting the insurance;
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(c) in the case of a conveyance, by the grantee;
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(d) in the case of a lease or agreement to lease, by the lessee or intended lessee;
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(e) in the case of an instrument of exchange, by the parties in equal shares.
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Obligation or give receipt in certain cases.
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34. Any person receiving any money to amounting to one hundred rupees upwards, or any bill of exchange, cheque, or promissory note for an amount of hundred rupees or upwards, or receiving in satisfaction or part satisfaction of a debt any movable property amounting to hundred rupees or upwards in value, shall give a duly stamped receipt for the same:
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Provided, however, that the Commissioner-General may, by notification published in the Gazette, exempt the requirement to give a duly stamped receipt, in respect of such matters as may be specified in such notification.
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ADJUDICATION AS TO STAMPS |
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Adjudication as to proper stamp.
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35.
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(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.
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(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:
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Provided that-
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(a) no evidence furnished in pursuance of this section shall be used against any person in any civil proceeding, except in an inquiry as to the duty with which the instrument to which it relates is chargeable; and
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(b) every person by whom any such evidence is furnished shall, on payment of the full duty with which the instrument to which it relates is chargeable, be relieved from any penalty which he may have incurred under this Ordinance by reason of the omission to state truly in such instrument any of the facts or circumstances aforesaid.
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Certificate by Commissioner- General.
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36.
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(1) When an instrument brought to the Commissioner-General under section 35 is in his opinion one of a description chargeable with duty, and-
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(a) the Commissioner-General determines that it is already fully stamped ; or
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(b) the duty determined by the Commissioner-General under section 35, or such a sum as, with the duty already paid in respect of the instrument, is equal to the duty so determined, has been paid, the Commissioner-General shall certify by endorsement on such instrument that the full duty (stating the amount) with which it is chargeable has been paid.
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(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.
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(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 ;
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Provided that nothing in this section shall authorize the Commissioner-General to endorse-
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(a) any instrument executed or first executed in Sri Lanka and brought to him after the expiration of one month from the date of its execution or first execution, as the case may be;
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(b) any instrument executed or first executed out of Sri Lanka and brought to him after the expiration of three months after it has been first received in Sri Lanka; or
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(c) any instrument chargeable with a duty not exceeding twenty-five cents, or any bill of exchange or promissory note, when brought to him after the drawing or execution thereof, on paper not duly stamped.
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Appeal against determination under section 35.
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37.
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(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.
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(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.
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(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.
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(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.
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(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.
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(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.
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(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.
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(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.
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INSTRUMENTS NOT DULY STAMPED |
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Power of public officers other than police officers to impound and examine instruments.
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38. Every person having by law or consent of parties authority to receive evidence, and every person in charge of a public office, except an officer of police, before whom any instrument chargeable in his opinion with duty is produced or comes in the performance of his functions, shall, if it appears to him that such instrument is not stamped with a stamp of the value and description required by the law in force in Sri Lanka when such instrument was executed or first executed, impound such instrument, and examine such instrument in order to ascertain whether it is stamped with a stamp of the value and description required by the law in force in Sri Lanka when such instrument was executed or first executed:
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Provided that nothing herein contained shall be deemed to require any Magistrate or Judge of a criminal court to impound or examine, if he does not think fit so to do, any instrument coming before him in the course of any proceeding.
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Commissioner-General may require public officers to impound or examine instruments.
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39.
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(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-
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(a) to impound such instrument; or
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(b) to examine such instrument in order to ascertain whether it is stamped with a stamp of the value and description required by the law in force in Sri Lanka when such instrument was executed or first executed.
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(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.
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(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.
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(4) For the purposes of section 38 and this section, in cases of doubt, the Minister may determine-
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(a) what offices shall be deemed to be public offices; and
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(b) who shall be deemed to be persons in charge of public offices.
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Special or Provision as to unstamped receipts.
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40. Where any receipt chargeable with a duty of twenty-five cents is tendered to produced before any officer unstamped in the course of the audit of any public course of the audit of any accounts, such officer may in his discretion, instead of impounding the instrument, require a duly stamped receipt to be substituted therefor.
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Instruments not daily stamped inadmissible in evidence, &c.
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41. No instrument chargeable with duty shall be admitted in evidence for any purpose by any person having by law or consent of parties authority to receive evidence, or shall be acted upon, registered, or authenticated by any such person or by any public officer, unless such instrument is duly stamped:
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Provided that-
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(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-
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Rs. c. |
(i) in cases where the duty or deficiency does not exceed Rs. 2, of |
250 |
(ii) in cases where the duty or deficiency exceeds Rs. 2 but does not exceed Rs. 7.50, of |
50 |
(iii) in cases where the duty or deficiency exceeds Rs. 7.50 but does not exceed Rs. 20, of |
100 |
(iv) where the duty or deficiency exceeds Rs. 20, the amount of the penalty to be imposed shall be determined by the Commissioner-General ; |
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(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;
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(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;
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(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;
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(e) nothing herein contained shall be taken to prevent the admission of any instrument in any criminal court.
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Effect of non-compliance with stamp laws in case of certain bills of exchange.
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42. Notwithstanding any written or other law to the contrary, a bill of exchange which is presented for acceptance or accepted, or payable, outside Sri Lanka shall not be invalid by reason only that it is not stamped in accordance with the provisions of this Ordinance, or of any other law for the time being in force relating to stamp duties; and any such bill of exchange which is unstamped or not properly stamped may be admitted in evidence on payment of the duty with which that bill of exchange is chargeable, or, in the case of any such bill of exchange which is insufficiently stamped, of the amount required to make up the duty, together with a penalty, as prescribed in paragraph (a) of the proviso to section 41.
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Admission of instruments where not to be questioned.
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43.
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(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.
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(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.
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(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.
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(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.
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(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:
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Provided that-
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(a) no such prosecution shall be instituted where the amount (including duty and penalty) which, according to the determination of such court, was payable in respect of the instrument under section 41 is paid to the Commissioner-General, unless he thinks that the offence was committed with an intention of evading payment of the proper duty;
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(b) except for the purposes of such prosecution, no declaration made under this section shall affect the validity of any order admitting any instrument in evidence, or of any certificate granted under section 48.
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Instruments impounded how dealt with.
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44.
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(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.
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(2) In every other case the person so impounding an instrument shall send it in original to the Commissioner-General.
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Commissioner-General’s power to refund penalty paid under section 44 (1).
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45.
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(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.
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(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.
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Commissioner- General’s power to stamp instruments impounded.
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46.
|
(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:-
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(a) if he is of opinion that such instrument is duly stamped or is not chargeable with duty, he shall certify by endorsement thereon that it is duly stamped, or that it is not so chargeable, as the case may be;
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(b) if he is of opinion that such instrument is chargeable with duty and is not duly stamped, he shall by notice in writing require the payment of the proper duty or the amount required to make up the same, together with a penalty of five rupees; or, if he thinks fit, with a penalty up to ten times the amount of the proper duty or of the deficient portion thereof, whether such amount exceeds or falls short of five rupees.
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(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.
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(4) Every certificate under paragraph (a) of subsection (1) shall, for the purposes of this Ordinance, be conclusive evidence of the matters stated therein.
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(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
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Instruments unduly accident, &c.
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47. If any instrument chargeable with duty and not duly stamped, not being an instrument chargeable with a duty not exceeding twenty-five cents or a bill of exchange or promissory note, is produced by any person of his own motion before the Commissioner-General within one year from the date of its execution or first execution, and such person brings to the notice of the Commissioner-General the fact that such instrument is not duly stamped and offers to pay to the Commissioner-General the amount of the proper duty or the amount required to make up the same, and the Commissioner-General is satisfied that the omission duly to stamp such instrument has been occasioned by accident, mistake, or urgent necessity, he may, instead of proceeding under sections 38, 39 and 46, receive such amount and proceed as next hereinafter prescribed.
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Endorsement of instruments on which duty has been paid under sections 41,46 or 47.
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48.
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(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.
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(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:
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Provided that-
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(a) no instrument which has been admitted in evidence upon payment of duty and a penalty under section 41 shall be so delivered before the expiration of one month from the date of such impounding, or if the Commissioner-General has certified that its further detention is necessary and has not cancelled such certificate;
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(b) nothing in this section shall affect the second proviso to section 116 of the Civil Procedure Code.
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Prosecution of offence against stamp law.
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49. The taking of proceedings or the payment of a penalty under this Chapter respect of any instrument shall not bar the prosecution of any person who appears to have committed an offence against the stamp law in respect of such instrument:
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Provided that no such prosecution shall be instituted in the case of any instrument in respect of which such a penalty has been paid, unless it appears to the Commissioner-General that the offence was committed with an intention of evading payment of the proper duty.
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Persons paying duty or penalty may recover same in certain cases.
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50.
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(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.
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(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.
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(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.
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Stamp duty or penalty paid in excess to be refunded.
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51.
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(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:
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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.
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(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).
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Non-liability for loss of instruments sent under section 44.
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52.
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(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.
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(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.
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Power of payer to stamp bills, promissory notes, and cheques received by him unstamped.
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53. When any bill of exchange, promissory note, or cheque chargeable with a duty not exceeding twenty-five cents is presented for payment unstamped, the person to whom it is so presented may affix thereto the necessary adhesive stamp, and, upon cancelling the same in manner hereinbefore provided, may pay the sum payable upon such bill, note, or cheque, and may charge the duty against the person who ought to have paid the same, or deduct it from the sum payable as aforesaid, and such bill, note, or cheque shall, so far as respects the duty, be deemed good and valid :
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Provided that nothing herein contained shall relieve any person from any penalty or proceeding to which he may be liable in relation to such bill, note, or cheque.
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Liability for stamp duty.
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55.
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(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;
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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.
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(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.
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[* Subsection (3) is repealed by Act No. 50 of 1971.]
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(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.
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(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:
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Provided that-
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(i) no proceedings shall be instituted against the executor in respect of any act or default of the deceased person,
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(ii) the liability of an executor under this subsection shall be limited to the sum of-
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(a) the deceased person’s estate in his possession or control at the date when notice is given to him that liability to stamp duty will arise under this subsection; and
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(b) any part of the estate which may have passed to a beneficiary.(Section 54 is repealed by Act No- 50 of 1971.)
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Misapplication 56 of money paid for stamp duty.
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56.
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(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).
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(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.
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(3) If cause is shown, the court shall make such order as it may deem just.
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(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.
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Use of stamps which are not genuine or have been previously used.
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57.
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(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).
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(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.
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(3) If cause is shown, the court make such order as it may deem just.
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Certificate of Commissioner-General on recovery of duty, &c.
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58.
|
(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-
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(a) the amount of the duty and penalty, if any, so recovered ;
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(b) the date of such recovery; and
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(c) the person from whom it was recovered, and shall certify in the same endorsement that the instrument is duly stamped.
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(2) Every such certificate shall, for the purposes of this Ordinance, be conclusive evidence of the matters stated therein.
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A.APPEALS TO THE COMMISSIONER-GENERAL |
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Appeals to the Commissioner-General.
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58A.
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(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:
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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.
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(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.
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(3) Every petition of appeal which does not conform to the provisions of subsection (2) shall not be valid.
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(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.
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(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.
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(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.
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(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-
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(a) require the appellant within the period specified in the notice, to produce, or transmit, for inspection by the Commissioner-General any document specified in the list transmitted by him to the Commissioner-General;
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(b) require the appellant in person or by authorized representative to be present, together with such documents and witnesses as may be specified in such notice, at such place and on such date and at such time as may be specified in the notice, to be heard on such matters relating to the appeal as may be specified in such notice ; and
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(c) require the appellant within the period specified in the notice to furnish the written evidence, on affidavit or in such other manner as may be specified in the notice, of any person mentioned in the list transmitted to the Commissioner-General by the appellant.
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(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:
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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.
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(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.
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(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.
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(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-
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(a) to produce any document which is not included in the list furnished under subsection (5) or to record the evidence of any witness whose name does not appear in that list, or
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(b) to raise any point which is not specified in the petition of appeal.
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(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-
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C-APPEALS TO THE COURT OF APPEAL |
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Appeal on a question of law to the Court of Appeal.
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58C.
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(1) The decision of the Board of Review shall be final:
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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.
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(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.
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(3) For the purpose of the application of the provisions of this Ordinance-
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(a) all proceedings before the Court of Appeal on any case stated under this section or the notification of the hearing, determination and the disposal of any such case, shall be deemed to be civil proceedings before the Court of Appeal of the value of five thousand rupees, or of such greater amount as may be set forth by the Board of Review under subsection (2) as the amount of the stamp duty or penalty in dispute ;
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(b) every such case stated shall, together with all books, documents and papers annexed thereto by the Board of Review, be deemed to be a single exhibit in civil proceedings before the Court of Appeal; and
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(c) the Commissioner-General, if he is the appellant, shall be deemed to be a Government officer suing, or if he is the respondent to the appeal, a Government officer being sued, in a suit virtue officii.
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(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.
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(5) The Court of Appeal may cause a stated case to be sent back for amendment, and thereupon the case shall be amended accordingly.
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(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.
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(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.
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Amount or amended amount to be finance.
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58D. Where no valid appeal has been lodged within the time specified in this Ordinance against the amount required to be paid, or where agreement is reached under section 58A (4) or where such amount has been determined on appeal, the amount as required to be paid, or reduced or increased or confirmed on appeal, as the case may be, shall be final and conclusive for all purposes of this Ordinance as regards the amount to be paid :
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Provided that nothing in this Ordinance shall prevent the Commissioner-General from requiring the payment of any other amount which does not involve re-opening any matter which has been determined on appeal.
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PAYMENT AND RECOVERY OF STAMP DUTY AND PENALTY |
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Provisions regarding payment of stamp duty or penalty.
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58E.
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(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.
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(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.
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(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.
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(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.
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(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.
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(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.
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Amount in default to be a first charge.
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58F. Any amount in default shall be a first charge upon all the assets of the defaulter:
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Provided that-
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(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
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(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.
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Recovery of amount by seizure and sale
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58G.
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(1)
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(a) Where any amount is in default, the Commissioner-General may issue a certificate to a Government Agent or Assistant Government Agent containing particulars of such amount and the name of the defaulter, and the officer to whom such certificate is issued shall be empowered and is hereby required to cause the amount to be recovered from the defaulter named in the certificate by seizure and sale of his movable property.
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(b) The said seizure shall be effected in such manner as the said officer shall deem most expedient in that behalf, and any property so seized shall be kept for five days at the costs and charges of the defaulter. If the defaulter does not pay the amount in default together with the costs and charges within the said five days, the Government Agent or Assistant Government Agent shall cause the said property to be sold by public auction.
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(c) The sum realized by the sale shall be applied-
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(i) firstly, in payment of the costs and charges of seizing, keeping and selling the property, and
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(ii) secondly, in satisfaction of the amount in default, and any balance shall be restored to the owner of the property seized.
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(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.
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(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.
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Proceedings for recovery before a Magistrate.
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58H.
|
(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.
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(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.
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(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.
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(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.
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(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.
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(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.
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(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 :
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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.
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(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.
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Recovery of amount by vesting immovable property of defaulter in the State.
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58J.
|
(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.
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|
Every such petition shall specify-
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(a) the particulars of the amount in default;
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(b) the name or names and the address or addresses of the person or persons by whom the amount is payable; and
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(c) the particulars of the immovable property to be vested in the State.
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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.
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(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.
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|
(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.
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(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-
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(a) any property which is specified in that petition; or
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|
(b) any rights in respect of that property,
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|
|
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.
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|
(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.
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|
(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-
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(a) if the District Court is satisfied that the claimant is entitled to the ownership of the immovable property or any portion thereof, the Court shall make order accordingly, and
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|
(b) if the Court is satisfied that the claimant has not established his claim to that property or that he has established his claim only to a portion thereof, the Court shall make order vesting in the State that property or that portion thereof in respect of which the claimant has not established ownership, and the Court shall make such order as to costs as the Court shall deem just.
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(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.
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|
(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.
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|
(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.
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|
(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:-
|
(a) Where the amount in default is annulled upon the final determination of an appeal made under Chapter IVA of this Ordinance against such amount.
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(b) Where the amount which the defaulter is liable to pay after the final determination of any appeal made under Chapter IVA of this Ordinance is paid by him within forty days after such final determination or within six months after the date of the order vesting such immovable property in the State, whichever is the later.
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(c) Where the amount in default is paid, when no appeal under Chapter IVA of this Ordinance is made by him against the amount, by the defaulter within six months after the date on which the order vesting in the State such immovable property was made.
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(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.
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(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.
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(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-
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(i) with the approval of the Secretary to the Treasury, refund to the defaulter the amount by which the market value of that property exceeds the amount in default; or
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(ii) cause such property to be sold.
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(15) Every sale under this section of any immovable property shall be-
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(a) on a date not earlier than six months after the date of the order vesting such property in the State ;
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(c) after notice of such sale is given at least fourteen days before the date fixed for such sale by advertisement published in the Gazette and in one or more newspapers.
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(16) The sum realized by the sale of any immovable property under this section shall be applied in the following order:-
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(i) in satisfaction of the amount payable to any person who has a mortgage or charge on any immovable property and whose claim to such mortgage or charge has been proved to the satisfaction of the Commissioner-General,
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(ii)in payment of the costs and charges of maintaining and selling the immovable property, and
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(iii)in satisfaction of the amount in default and any balance shall be paid to the defaulter.
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(17)
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(a) Where an order is made by the District Court vesting any immovable property in the State, the Court may in such order or in any subsequent order direct that any person authorized in that behalf by the Commissioner-General shall take possession of such property for and on behalf of the State.
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(b) Where the person directed under this subsection to take possession of any immovable property is unable or apprehends that he will be unable to take possession of that property, because of any obstruction or resistance which has been or is likely to be offered, such person shall, on his making an application in that behalf to the District Court which directed him to take possession of such property, be entitled to an order of that Court directing the Fiscal to deliver possession of the property to him for and on behalf of the State.
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(c) Where an order made under paragraph (A) of this subsection is issued to the Fiscal by the District Court, he shall forthwith execute that order and shall in writing report to that Court the manner in which that order was executed.
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(d) For the purpose of executing an order under paragraph (b) of this subsection, the Fiscal or any person acting under his direction may use such force as may be necessary to enter the property to which that order relates and to eject any person in occupation of that property and to deliver possession of that property to the person who is authorized to take possession of that property for and on behalf of the State.
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(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.
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(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.
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(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.
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” 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
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” market value “, in relation to any immovable property, means the value which such property will fetch in the open market.
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Recovery of amount out of debit and &c.
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58K.
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(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-
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(a) owes or is about to pay money to the defaulter or his agent; or
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(b) holds money for and on account of the defaulter or his agent; or
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(c) holds money on account of some other person for payment to the defaulter or his agent; or
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(d) has authority from some other person to pay money to the defaulter or his agent, the Commissioner-General may give to such person notice in writing (a copy of which shall be sent by post to the defaulter) requiring him to pay any such moneys not exceeding the amount in default to the officer named in such notice. The notice shall apply to all such moneys which are in his hands or due from him or about to be paid by him at the date of receipt of such notice, or come into his hands or become due from him or are about to be paid by him at any time within the period of three months after the date of such notice.
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(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.
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(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.
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(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.
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(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-
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(a) the executor or administrator of a deceased person, or
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(b) any person who takes possession of, or intermeddles with, the property of a deceased person, or
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(c) any person who has applied or is entitled to apply to a District Court for the grant or resealing of probate or letters of administration in respect of the estate of a deceased person.
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Recovery of amount from persons leaving Sri Lanka.
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58L.
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(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.
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(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.
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(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.
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Use of more than one means of recovery.
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58M. Where the Commissioner-General is of opinion that application of any of the provisions of this Chapter has failed or is likely to fail to secure the payment of the whole of any amount due under this Ordinance from any person, it shall be lawful for him to proceed to recover any sum remaining unpaid by any other means of recovery provided in this Chapter, notwithstanding that an order has been made by a Magistrate under section 58H and carried into effect.
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Power of Commissioner-General to obtain information for the recovery of the amount.
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58N. The Commissioner-General may, by notice given in writing to any person, require that person within the time specified in such notice to furnish any information which the Commissioner-General may require for the purpose of recovering any amount due from such person or some other person.
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Liability of directors of private company in liquidation.
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58P.
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(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.
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(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.)
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ALLOWANCES FOR STAMPS IN CERTAIN CASES |
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Allowances for spoiled stamps.
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59.
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(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:-
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(a) the stamp, whether affixed or not to any paper, inadvertently and undesigned, spoiled, obliterated, or by error in writing or any other means rendered unfit for the purpose intended before any instrument written thereon is executed by any person;
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(b) the stamp on any document which is written out wholly or in part, but which is not signed or executed by any party thereto;
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(c) in the case of bills of exchange, cheques, or promissory notes-
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(i) the stamp on any bill of exchange or cheque signed by or on behalf of the drawer which has not been accepted or made use of in any manner whatever or delivered out of his hands for any purpose other than by way of tender for acceptance :
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Provided that the paper on which any such stamp is impressed does not bear any signature intended as or for the acceptance of any bill of exchange or cheque to be afterwards written thereon;
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(ii) the stamp on any promissory note signed by or on behalf of the maker which has not been made use of in any manner whatever or delivered out of his hands;
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(iii) the stamp used or intended to be used for any bill of exchange, cheque, or promissory note signed by, or on behalf of, the drawer thereof, but which from any omission or error has been spoiled or rendered useless, although the same, being a bill of exchange or cheque, may have been presented for acceptance or accepted or endorsed, or, being a promissory note, may have been delivered to the payee;
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Provided that another completed and duly stamped bill of exchange, cheque, or promissory note is produced identical in every particular, except in the correction of such omission or error as aforesaid, with the spoiled bill, cheque, or note;
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(d) the stamp used for an instrument executed by any party thereto which-
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(i) has been afterwards found to be absolutely void in law from the beginning;
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(ii) has been afterwards found unfit by reason of any error or mistake therein for the purpose originally intended;
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(iii) by reason of the death of any person by whom it is necessary that it should be executed, without having executed the same, or of the refusal of any such person to execute the same, cannot be completed so as to effect the intended transaction in the form proposed;
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(iv) for want of the execution thereof by some material party, and his inability or refusal to sign the same, is in fact incomplete and insufficient for the purpose for which it was intended ;
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(v) by reason of the refusal of any person to act under the same or to advance any money intended to be thereby secured, or by the refusal or non-acceptance of any office thereby granted, totally fails of the intended purpose;
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(vi) becomes useless in consequence of the transaction intended to be thereby effected, being effected by some other instrument between the same parties and bearing a stamp of not less value;
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(vii) is deficient in value and the transaction intended to be thereby effected has been effected by some other instrument between the same parties and bearing a stamp of not less value;
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(viii) is inadvertently and undesignedly spoiled, and in lieu whereof another instrument made between the same parties and for the same purpose is executed and duly stamped:
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Provided that in the case of an executed instrument, no legal proceeding has been commenced in which the instrument could or would have been given or offered in evidence, and that the instrument is given up to be cancelled.
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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.
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(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.
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Application for relief under section 59 when to be made.
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60. The application for relief under following periods, that is to say:-
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(a) in the cases mentioned in paragraph (d) (v), within two months of the date of the instrument;
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(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 ;
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(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:
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Provided that-
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(i) when the spoiled instrument has been for sufficient reasons sent out of Sri Lanka, the application may be made within six months after it has been received back in Sri Lanka;
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(ii) when, from unavoidable circumstances, any instrument for which another instrument has been substituted cannot be given up to be cancelled within the aforesaid period, the application may be made within six months after the date of execution of the substituted instrument.
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Allowance in case of Printed forms on of longer required by corporations.
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61. The Commissioner-General may, without limit of time, make allowance for stamped papers used for printed forms instruments by any incorporated company or other body corporate, if for any sufficient reason such forms have ceased to be required by the said company or body corporate:
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Provided that such authority is satisfied that the duty in respect of such stamped papers has been duly paid.
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Allowance for misused stamps.
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62.
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(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
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(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.
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Allowance for spoiled or misused stamps how to be made.
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63. In any case in which allowance is made for spoiled or misused stamps, the Commissioner-General may give in lieu thereof-
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(a) other stamps of the same description and value; or
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(b) if required and he thinks fit, stamps of any other description to the same amount in value; or
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(c) at his discretion, the same value in money, deducting two and a half cents for each rupee or fraction of a rupee.
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Allowance for stamps not required for use.
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64. When any person is possessed of a stamp or stamps which have not been spoiled or rendered unfit or useless for the purpose intended, but for which he has no immediate use, the Commissioner-General shall repay to such person the value of such stamp or stamps in money, deducting two and a half cents for each rupee or portion of a rupee, upon such person delivering up the same to be cancelled, and proving to the satisfaction of the Commissioner-General-
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(a) that such stamp or stamps were purchased by such person with a bona fide intention to use them; and
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(b) that he has paid the full price thereof; and
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(c) that they were so purchased within the period of six months next preceding the date on which they were so delivered:
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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.
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Allowance on renewal of certain debentures.
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65. When any duly stamped debenture is renewed by the issue of a new debenture in the same terms, the Commissioner-General shall, upon application made within one month, repay to the person issuing such debenture the value of the stamp on the original or on the new debenture, whichever shall be less:
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Provided that the original debenture is produced before the Commissioner-General and cancelled by him in such manner as the Minister may direct.
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A debenture shall be deemed to be renewed in the same terms within the meaning of this section, notwithstanding the following changes:-
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(a) the issue of two or more debentures in place of one original debenture, the total amount secured being the same;
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(b) the issue of one debenture in place of two or more original debentures, the total amount secured being the same;
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(c) the substitution of the name of the holder at the time of renewal for the name of the original holder; and
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(d) the alteration of the rate of interest or the dates of payment thereof.
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No right of action against State for refund.
|
66. Nothing in this Ordinance shall confer or be deemed to confer any right of action against the State for the recovery or return of any moneys paid as duty.
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Penalty for executing, and &c. instruments not duly or stamped.
|
67.
|
(1) Any person-
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(a) drawing, making, issuing, endorsing, transferring, or signing otherwise than as a witness, or presenting for acceptance or payment, or accepting, paying, or receiving payment of, or in any manner negotiating, any bill of exchange, cheque, or promissory note without the same being duly stamped ; or
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(b) executing or signing otherwise than as a witness any other instrument chargeable with duty without the same being duly stamped ; or
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|
(c) voting or attempting to vote under any proxy not duly stamped, shall for every such offence be punishable with fine which may extend to two hundred rupees:
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|
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.
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(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.
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Penalty for failure to cancel adhesive stamp.
|
68. Any person required by section 7 to cancel an adhesive stamp, and failing to cancel such stamp in manner prescribed by that section, shall be punishable with fine which may extend to one hundred rupees.
|
Penalty for omission to comply with provisions of section 28.
|
69. Any person who, with intent to defraud the Government-
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(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
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(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
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(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.
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Penalty for failure to give receipt and for devices to evade duty on receipts.
|
70. Any person who-
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(a) in contravention of the provisions of section 34, fails or neglects to give a receipt, or
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(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.
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Penalty for not making out policy or making one not duly stamped.
|
71. Any person who-
|
(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
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(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.
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One bill only of a set need be stamped.
|
72. When a bill of exchange is drawn in a set according to the custom of merchants, and one of the set is duly stamped, the other or others of the set shall, unless issued or in some manner negotiated apart from the stamped bill, be exempt from duty; and upon proof of the loss or destruction of a duly stamped bill forming one of a set, any other bill of the set which has not been issued or in any manner negotiated apart from the lost or destroyed bill may, although unstamped, be admitted in evidence to prove the contents of the lost or destroyed bill.
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Penalty for post-dating bills and for other devices to defraud the revenue.
|
73. Any person who-
|
(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
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(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
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|
(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.
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Institution and conduct of prosecutions.
|
74. No prosecution in respect of any offence punishable under this Ordinance or any enactment repealed by Ordinance No. 22 of 1909 shall be instituted without the sanction of the Commissioner-General.
|
Power of Commissioner-General to compound offences.
|
75.
|
(1) The Commissioner-General may stay any such prosecution or compound any such offence.
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|
(2) The amount of any such composition shall be recoverable in the manner provided in Chapter FVB.
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Amount of stamp duty or penalty to be payable notwithstanding any proceedings for penalties, &c.
|
75A. The institution of proceedings for, or the imposition of, a penalty, fine or term of imprisonment under this Ordinance shall not relieve any person from liability to payment of any amount for which he is or may be liable.
|
Penalty on notaries for non-compliance with section 28.
|
76. Any notary or other person employed or concerned in or about the preparation of any instrument who willfully neglects or fails to set forth therein fully and truly the consideration, if any, and all facts and circumstances required by section 28 to be set forth, or in anywise assists or aids any person in so doing, shall be guilty of an offence, and shall be punishable with fine which may extend to one thousand rupees-
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LICENSED DEALERS IN STAMPS |
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Commissioner- General may license persons to deal in stamps.
|
77. It shall be lawful for the Commissioner-General to grant licenses to all persons, except notaries, applying for the same, whom he in his discretion shall think fit and proper for the purpose, to vend and deal in stamps at any place or places in Sri Lanka to be named in such license.
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|
Every such license shall be subject to annual renewal:
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|
Provided that it shall be lawful for the Commissioner-General to grant or refuse such renewal;
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|
Provided also that every person to whom Persons any such license shall be granted shall enter licensed to into a bond to the State in a penal sum of bond. one thousand rupees, conditioned that such Condition licensed person shall not sell or offer for sale or exchange or keep or have in his possession, for the purpose of sale or exchange, any stamp or stamps other than such as he shall have purchased or procured at the office of the Commissioner-General in Colombo, or at some kachcheri, or from some person licensed to deal in stamps under the authority of this Ordinance, and that he shall keep such entries and accounts of the stamps sold by him, and observe such conditions, and forward such returns, as the Commissioner-General shall from time to time prescribe;
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Provided further that one license and one bond only shall be required for any number of persons in co-partnership. And it shall be lawful for the said Commissioner-General, whenever he shall think fit, by notice in writing signed by him, to revoke and make void any such license as aforesaid.
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Particulars to be specified in the license.
|
78. In every license to vend or deal in stamps there shall be truly specified the proper name and place of abode of the person to whom the same shall be granted, and a true description of the place at which he shall by such license be authorized to vend or deal in stamps; and such person shall not be thereby authorized or entitled to vend or deal in stamps at any other place than such as shall be specified and prescribed in such license.
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No person to deal in stamps without such license.
|
79. No person, other than the Commissioner-General or Government Agent, shall vend or deal in stamps in any part of Sri Lanka without having first obtained from the Commissioner-General a license for that purpose, which shall be in force and unrevoked at the time of such vending or dealing; and if any person, other than such Commissioner-General or Government Agent, shall sell or offer for sale any stamp denoting or purporting to denote any stamp duty, or shall exchange any such stamp for any other stamp or for any other article or thing, without holding such licence as aforesaid, and in accordance with the terms of such licence, he shall for every such offence be liable to a fine not exceeding one hundred rupees:
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|
As to persons employed to write instruments liable to stamp duty.
|
|
Provided that it shall be lawful for any person employed to prepare or write any instrument liable to stamp duty to charge his employer with the amount of the stamp or stamps affixed to or impressed on the paper or other material upon which such instrument shall be written, without having obtained any such licence as aforesaid to vend or deal in stamps.
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Stamp vendors to make stamp paper sold by them.
|
80. Every person authorized to vend or deal in stamps shall be bound and required, at the time of the sale of any adhesive stamps, and before delivery thereof to the purchaser, to mark the stamps at the bottom thereof with his name or initials, or the name or initials of his firm, and with the date of sale. But nothing herein contained shall be deemed to apply to postage stamps used for revenue purposes. And in the case of impressed stamps such vendor shall be bound, before delivery thereof to the purchaser, to draw or mark a line across each stamp, and to write his name or initials, or the name or initials of his firm, on the paper or material on which such stamp is impressed. Any vendor failing to comply with the provisions of this section, or acting contrary thereto, shall be guilty of an offence, and shall be liable on conviction to such punishment as a Magistrate’s Court shall be empowered to inflict.
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Discount allowed to licensed dealers in stamps.
|
81. A discount shall be allowed to such licensed dealer on the purchase of any stamp, not being postal and revenue stamps denoting a duty of five cents, at the stamp office in Colombo, or from any Government Agent, after the rate of two and a half rupees per centum, on the prompt payment of any sum amounting to one hundred rupees or upwards, and (in any case in which the Minister shall in his discretion think fit to authorize the same) after the rate of one and a half rupees per centum, on the prompt payment of any sum amounting to fifty rupees and under one hundred rupees:
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|
Provided that it shall be lawful for Commissioner-the Commissioner-General or for the General may Government Agent to prescribe rules from time to time as to the times of issue and the quantities of each description of stamps to be issued to vendors at any one time from the stamp office or from the several kachcheries respectively;
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|
Provided further, that the Minister, if he thinks fit, may by rule direct that a discount at the rate aforesaid shall be allowed to licensed dealers on the purchase of postal and revenue stamps denoting a duty of five cents.
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Licensed dealers in stamps to paint their names, &c, in front of their houses or shops.
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82.
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(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:
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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.
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Penalty on unlicensed persons holding as dealers in stamps.
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(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.
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Allowance to be made for stamps in the possession of licensed vendors dying or becoming insolvent, or whose licences are revoked.
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83. If any person licensed to vend or deal in stamps shall die or become insolvent, or if the licence of any person to vend or deal in stamps shall expire or be revoked, and any such person, at the time of his death or insolvency, or at the expiration or revocation of any such licence, shall have in his possession any quantity of stamps, it shall be lawful for such person, or his heirs, executors, or administrators, or assignees, within three months after the expiration or revocation of such licence, or next after the death or insolvency, as the case may be, to bring or send such stamps to the stamp office in Colombo ; and it shall be lawful for the Commissioner-General to receive the same, and to return to the person bringing or sending the same the amount received therefor, deducting therefrom such percentage as may have been allowed to the person by whom the returned stamps were purchased:
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Provided that the person who shall bring or send such stamps to the said office shall satisfy the Commissioner-General that such stamps were actually in the possession of the person so dying, or becoming insolvent, or having had such licence which had so expired or had been so revoked, for the purpose of sale, at the time when such person so died or became insolvent, or when the said licence expired or was revoked ; and that such stamps were purchased or procured by the person to whom such licence shall have been granted from the Commissioner-General, or from some Government Agent, or person licensed to deal in stamps as aforesaid.
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Commissioner-General and Magistrates empowered to grant warrants to search and inspect the stocks of stamps of licensed dealers.
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84. Upon information given to the Commissioner-General or to a Magistrate, upon the oath of one or more credible person or persons, that there is reasonable cause to suspect that any person licensed to vend and deal in stamps has in his possession any forged or counterfeit stamp or stamps, it shall be lawful for the said Commissioner-General or Magistrate, by warrant under his hand, to authorize any person, and such person is hereby fully authorized accordingly, with the assistance, if required, of any constable or other peace officer, to enter, between the hours of six in the morning and six in the evening, into any building or place, and, if need be, break open the same, and to search for and to seize, and to take into his possession all such stamps as shall be in any such place as aforesaid; and all constables and other peace officers are hereby required, upon the request of any person or persons acting under such warrant, to aid and assist him or them in the execution thereof; and if any constable or other peace officer shall, upon any such request as aforesaid, refuse or neglect to aid and assist in the execution of any such warrant as aforesaid, or if any person shall refuse to permit any such search or seizure as aforesaid to be made, or shall assault, oppose, molest, or obstruct any person employed or acting in the execution or under the authority of any such warrant, or aiding or assisting in the execution thereof, every such constable, peace officer, or other person so offending in any of the cases aforesaid shall be liable to a fine not exceeding two hundred rupees:
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Provided that any person who shall execute any such warrant shall, if required, give to the person in whose custody or possession any stamps shall be found and seized an acknowledgment of the number, particulars, and amount of the stamps so seized, and shall permit such last-mentioned person, or any person employed by him, to mark the same before the removal thereof.
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Penalties on persons hawking stamps.
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85. If any person, whether he shall be licensed to vend or deal in stamps or not, shall hawk or carry about for sale or exchange any stamps, or if any person shall utter or offer for sale or exchange any stamps at any place other than the place in which he shall have been licensed to vend or deal in stamps, every such person shall be guilty of an offence, and liable to a fine not exceeding fifty rupees over and above any penalty to which he may be liable for vending or dealing in stamps without being licensed so to do ; and it shall moreover be lawful for any person, without any other warrant than this Ordinance for that purpose, to apprehend any person so offending, and to cause him to be taken before any Magistrate having jurisdiction where the offence shall be committed, who shall hear and determine the matter, and all stamps which shall be found in possession of such offender shall be forfeited to the State, and shall be taken possession of by such Magistrate, and be delivered over to the Commissioner-General to be disposed of in such manner as he shall think fit.
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Power to discontinue issue of licences to sell stamps.
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86.
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(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.
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(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.
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(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.
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COMPOSITION FOR CERTAIN STAMP DUTIES |
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Composition duties on policies of in insurance against accident.
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87.
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(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.
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(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:-
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(a) every account shall be made in such form and contain such particulars as the Commissioner-General shall require;
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(b) every account shall be a full and true account of all unstamped policies of insurance against accident issued during the half-year ending on the half-yearly day next preceding the delivery thereof, and of all sums of money received for or in respect of such policies so issued during that half-year, and of all sums of money received and not already accounted for in respect of any other unstamped policies of insurance against accident issued at any time before the commencement of that half-year;
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(c) accounts shall be delivered to the Commissioner-General within twenty-one days after the first day of January and the first day of July;
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(d) the duty shall be paid upon the delivery of the account.
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(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.
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(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.
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(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.
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Provisions of section 34 not to apply m certain circumstances.
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87A.
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(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-
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(a) to deduct from the amount of any such payment as is specified in the notice, the stamp duty payable on the receipt relating to such payment,
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(b) to remit at such intervals as are specified in the notice the sums deducted under paragraph (a), and
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(c) to deliver to the Commissioner- General accounts relating to the sums deducted under paragraph (a) at such intervals, in such form and containing such particulars as are specified by the Commissioner-General in the notice.
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(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.
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(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.
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(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.
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Requisites of letters or powers of attorney for the purpose of appointing a proxy to vote, and voting papers.
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88. Every letter or power of attorney for the sole purpose of appointing a proxy to vote at any meeting shall specify the day upon which the meeting at which it is intended to be used is to be held, and shall be available only at the meeting so specified, or any adjournment thereof.
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[* Sections 89 and 90 are omitted, as paper actions are omitted from the Civil Procedure Code by a repeal by Law No. 20 of 1977. ]
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Schedule omitted – See List of Enactments omitted from the Revised Edition.
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Deficiency of stamp duty on testamentary proceedings.
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91. It shall be the duty of the Registrar of every District Court to render to the District Judge, on the first Monday of every quarter, a statement showing the deficiency of stamp duty in respect of every instrument, required by law to be stamped in every testamentary suit then pending before such court. And whenever the District Judge is satisfied that too little stamp duty has been paid in respect of any such instrument whether by reason of the property having been undervalued when originally valued, or otherwise, the District Judge shall require the party who tendered such instrument to make good the deficiency of stamp duty, and shall enforce payment of the same by writ (free of stamp duty) of execution against the property and person of such party.
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Exhibits of documents.
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92. In the case of exhibits provided for in Part II of Schedule A, a document bearing a stamp for registration purposes only shall be deemed a document on which no stamp is affixed or impressed, except where the duplicate is duly stamped.
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Stamping of duplicates of certain instruments.
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93. Where any instrument specified in Schedule A, Part I (not being a draft, order, or promissory note for the payment of money or a receipt or discharge for or upon the payment of money), shall be executed or acknowledged before a notary public, or shall be executed before some public officer, under the authority of the Deeds and Documents (Execution before Public Officers) Ordinance, or by any Fiscal in the execution of his office, the stamp duty hereby chargeable on such instrument shall be chargeable on the duplicate or counterpart thereof, instead of on the original instrument, and in such case, if the duty exceed the sum of five rupees, the original instrument shall bear a stamp of one rupee.
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Signature and service of stamps.
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93A.
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(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.
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(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.
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(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.
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(4) In proving service by post, it shall be sufficient to prove that the letter containing the notice was duly addressed and posted.
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(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.
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Validity of notice and &c 1971]
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93B.
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(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.
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(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.
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Interpretation.
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94. In this Ordinance, unless there is something repugnant in the subject or context-
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” Assessor” means an Assessor of Inland Revenue appointed or deemed to be appointed for the purposes of the Inland Revenue Act (No, 28 of 1979), and includes a Senior Assessor of Inland Revenue and an Assistant Assessor of Inland Revenue;
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” authorized representative ” means any individual-
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(1) who is authorized in writing by a person to act on his behalf for the purposes of this Ordinance and who is-
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(a) in any case-
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(i) an individual who, being a member of the Institute of Chartered Accountants of Sri Lanka, or of any other Institute established by law, possesses a certificate to practice as an Accountant issued by the Council of such Institute; or a firm of Accountants each of the resident partners of which, being a member of the Institute of Chartered Accountants of Sri Lanka or of any other Institute established by law, possesses a certificate to practice as an Accountant issued by the Council of such Institute.
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(ii) accountant approved by the Commissioner-General ;
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(iii)an attorney-at-law; or
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(iv)an employee regularly employed by the person concerned;
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(b) in the case of an individual, a relative;
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(c) in the case of a company, a director or the secretary;
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(d) in the case of a partnership, a partner;
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(e) in the case of a body of persons, a member of such body; or
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(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:
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“bank ” includes a banking corporation or company;
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“banker” includes a bank and any person acting as a banker;
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” bill of exchange” means a bill of exchange as defined by the Bills of Exchange Ordinance, and any other document entitling or purporting to entitle any person whether named therein or not to payment by any other person of, or to draw upon any other person for, any sum of money;
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“bill of exchange payable on demand includes-
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(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,
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(b) an order for the payment of any sum of money weekly, monthly, or at any other stated periods, and
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(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;
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” bill of lading ” includes a ” through bill of lading “, but does not include a mate’s receipt;
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” broker’s note ” means the note sent by a broker or agent to his principal (except where such principal is acting as broker or agent for a principal) advising him of the sale or purchase on account of such principal, of any goods, stock, share, debenture or marketable security, or of any rubber coupon, tea coupon or coupon credit issued or granted under the authority of any enactment for the time being in force for the control of the production or export of rubber or of tea, as the case may be;
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” chargeable” means, as applied to an instrument executed or first executed after the commencement of this Ordinance, chargeable under this Ordinance, and as applied to any other instrument chargeable under the law in force in Sri Lanka when such instrument was executed or where several persons executed the instrument at different times first executed;
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” cheque ” means a bill of exchange drawn on a specified bank and not expressed to be payable otherwise than on demand;
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“Commissioner-General” means the Commissioner-General of Inland Revenue appointed or deemed to be appointed for the purpose of the Inland Revenue Act (No. 28 of 1979) and includes any officer of the Department of Inland Revenue authorized by such Commissioner-General in writing in respect of any particular matter or any provision of this Ordinance;
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” conveyance ” includes a conveyance on sale and every instrument by which property, whether movable or immovable, or any interest or estate in any property, is transferred inter vivos, and which is not otherwise specifically provided for under this Ordinance;
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” die ” includes any plate, type, tool or implement whatever used under the direction of the Commissioner-General, for expressing or denoting any duty, or rate of duty, or the fact that any duty or rate of duty or penalty has been paid, or that an instrument is duly stamped or is not chargeable with any duty, or for denoting any fee and also any part of any such plate, type, tool or implement;
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” duly stamped” as applied to an instrument means that the instrument bears an adhesive or impressed stamp of not less than the proper amount, and that such stamp has been affixed and cancelled according to the law for the time being in force in Sri Lanka;
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” executed” and ” execution”, used with reference to instruments, mean ” signed ” and ” signature “;
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” Government Agents includes any Assistant Government Agent;
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” impressed stamp” includes-
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(a) labels affixed and impressed by the proper officer, and
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(b) stamps impressed by means of a die;
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” instrument” includes every document by which any right or liability is, or purports to be, created, transferred, limited, extended, extinguished, or recorded;
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” marketable security ” means a security of such a description as to be capable of being sold in any stock market in Sri Lanka or in any foreign country;
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” money” as used in this Ordinance includes all sums, whether expressed in Sri Lanka or foreign currency;
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” person” includes any company, corporation, or society;
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” policy of insurance” includes-
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(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;
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(b) a life policy, and any policy insuring any person against accident or sickness, and any other personal insurance ; and
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(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;
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” policy of sea insurance” or ” sea policy”-
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(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
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(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;
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(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;
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“power of attorney” includes any instrument (not chargeable with a fee under the law relating to court fees for the time being in force) empowering a specified person to act for and in the name of the person executing it;
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” promissory note” means a promissory note as defined by the Bills of Exchange Ordinance; it also includes a note promising 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;
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” property” means movable as well as immovable property; note, “receipt” includes any memorandum or writing-
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(a) whereby any money, or any bill of exchange, cheque or promissory note is acknowledged to have been received, or
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(b) whereby any other movable property is acknowledged to have been received in satisfaction of a debt, or
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(c) whereby any debt or demand, or any part of a debt or demand, is acknowledged to have been satisfied or discharged, or
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(d) which signifies or imports any such acknowledgment, and whether the same is or is not signed with the name of any person;
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” share certificate ” means a certificate or other document evidencing the right or title of the holder thereof or any other person either to any shares, scrip, stock, or debenture stock in or of any incorporated company or other body corporate, or to become proprietor of shares, scrip, stock, or debenture stock in or of any such company or body;
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“write”, “written”, and “writing”, includes every mode in which words or figures can be expressed upon material.
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