Amendment of section 39 of Bom. LX of 1958

In the principal Act, in section 39, in sub-section (1),-

1. (1) for clause (b), the following clause shall be substituted, namely:- “(b) if he is of the opinion that such instrument is chargeable with duty and is not duly stamped, he shall require the payment of the proper duty or the amount required to make up the same, together with,-
   • (i) If the person voluntarily produce the instrument before the collector, for the payment of deficit stamp duty, penalty of an amount equal to 2 per cent. of the deficient portion of the stamp duty, for every month or part thereof from the date of execution of the instrument subject to the payment of minimum penalty of rupees three hundred: Provided that in no case, the amount of the penalty shall exceed four times the deficient portion of the stamp duty.
   • (ii) If the Collector may suo motu or on a reference from any Court or any Authority or by any person in that behalf, penalty of an amount equal to 3 per cent. of the deficient portion of the stamp duty, for every month or part thereof from the date of execution of the instrument subject to the payment of minimum penalty of rupees three hundred: Provided that in no case, the amount of the penalty shall exceed six times the deficient portion of the stamp duty.”;
2. (2) before the existing proviso, the following provisos shall be inserted, namely:- “ Provided that,
   • (a) duty for which reduction or remission is granted by the Government under clause
   • (a) of section 9 under any prevailing policy, the time period between the date of reduction or remission and date of application filed for surrender or de-notified from the policy, shall not be treated as deficient portion of duty for the purpose of calculation of penalty, if the beneficiary of such reduction or remission in duty surrenders or forgoes or has surrendered or forgone such benefit with prior approval or with no objection from the Government; and
   • (b) a period between the date of original instrument presented before collector and the date of order by collector shall be subtracted for penalty under this section:
3. (3) in the existing proviso to sub-section (1), for the words “ Provided that”, the words “Provided also” shall be substituted.