Chapter IV Instruments not Duly Stamped

1. (1) Every person having by law or consent of parties authority to receive evidence, and every person incharge of a public office, except an officer of a 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 duly stamped, impound the same.
2. (2) For that purpose every such person shall examine every instrument so chargeable and so produced or coming before him, in order to ascertain whether it is stamped with a stamp of the value and description required by the law in force in the State when such instrument was executed or first executed: Provided that,-
   • (a) nothing herein contained shall be deemed to require any Magistrate or Judge of a Criminal Court to examine or impound, if he does not think fit so to do, any instrument coming before him in the course of any proceeding other than a proceeding under Chapter IX or Part D of Chapter X of the Code of Criminal Procedure, 1973 (Act No. 2 of 1974);
   • (b) In the case of a Judge of a High Court, the duty of examining and impounding any instrument under this section may be delegated to such officer as the Court appoints in this behalf.
3. (3) For the purposes of this section in cases of doubt,--
   • (a) The State Government may determine what offices shall be deemed to be public offices; and
   • (b) The State Government may determine who shall be deemed to be persons incharge of public offices.
4. (4) When a person incharge of a public office, during the course of inspection or otherwise, detects from an instrument or copy thereof or when it appears therefrom to the person referred to in sub-section (1) that the instrument is not duly stamped, such person shall forthwith make a reference to the Collector in that matter.
5. (5) The Collector may, suo-moto or on such reference, call for the original instrument for ascertaining whether it is duly stamped and the instrument so produced shall be deemed to have been produced or come before him in the performance of his functions and in case the original instrument is not produced within the period specified by the Collector, he may require the payment of the proper duty or the amount required to make up the same together with the penalty under section 44.

Where any receipt chargeable with a duty not exceeding one rupee is tendered to or produced before any officer unstamped in the course of audit of any public account, such officer may in his discretion, instead of impounding the instrument, require a duly stamped receipt to be substituted therefore.

No instrument chargeable with duty under this Act 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: Provided that,-

1. (a) any such instrument shall, subject to all just exceptions, be admitted in evidence on payment of, -
   • (i) the duty with which the same is chargeable, or in the case of an instrument insufficiently stamped, of the amount required to make up such duty, and 1[(ii) a penalty at the rate of two percent of the amount of the deficient duty per month or part thereof for the period during which the instrument remained insufficiently stamped or twenty five percent of the deficient stamp duty, whichever is higher, but such penalty shall not exceed to two times of the deficient stamp duty.]
2. (b) 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 of agreement shall be deemed to be duly stamped.
3. (c) nothing herein contained shall prevent the admission of any instrument as evidence in any proceeding in a criminal court, other than a proceedings under chapter IX or Part D of Chapter X of the Code of Criminal Procedure, 1973 (Act No. 2 of 1974).
4. (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 Collector as provided by section 36 or any other provision of this Act.
5. (e) nothing herein contained shall prevent the admission of a copy of any instrument or of an oral account of the contents of any instrument, if the stamp duty or a deficient portion of the stamp duty and penalty as specified in clause (a) is paid.
6. (f) nothing herein contained shall prevent the admission of any instrument in evidence in any court when stamp duty on such instrument has already been paid in advance in the form of a consolidated lump sum.
7. (g) nothing herein contained shall prevent the admission of any instrument in any court when such document has been executed by or on behalf of the Government or where it bears the Certificate of the Collector as provided by section 36 or any other provision of this Act.

Where an instrument has been admitted in evidence, such admission shall not, except as provided in section 71, be called in question at any stage of the same suit or proceeding on the ground that the instrument has not been duly stamped.

The State Government may make rules providing that, where an instrument bears a stamp of sufficient amount but or improper description, it may on payment of the duty with which the same is chargeable, be certified to be duly stamped, and any instrument so certified shall then be deemed to have been duly stamped as from the date of its execution.

1. (1) When the person impounding an instrument under section 37 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 39 or of duty as provided by section 41, he shall sent to the Collector 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 sent such amount to the Collector, or to such person as he may appoint in this behalf.
2. (2) In every other case, the person so impounding an instrument shall send it in original to the Collector: Provided that where the person who produced the instrument, or any party interested, is prepared to pay the cost of preparing a copy of the instrument, then:-
   • (a) an authenticated copy of the instrument shall be got prepared by the person impounding the instrument;
   • (b) only the authenticated copy shall be sent to the Collector;
   • (c) the Collector shall take action on the authenticated copy as if it were the instrument in original; and
   • (d) any certificate to be endorsed with reference to the instrument by the Collector under clause (a) of sub- section (1) of section 44 or under sub-section (1) of section 46 shall be endorsed on the authenticated copy, ordinarily within 30 days of receipt of the instrument by the Collector and when that copy is received back by the person impounding the instrument that person shall copy the certificate on the original instrument and also authenticate such copy of the certificate.

1[Where a copy of an instrument which has been impounded only because it has been written in contravention of section 13 or section 14 is sent to the Collector under sub-section (1) of section 42, he may refund whole penalty paid in respect of such instrument.]

1. (1) When the Collector,--
   • (a) Impounds any instrument under section 37, or
   • (b) receives any instrument sent to him under sub-section(2) of section 42, and such instrument is chargeable with a duty under this Act, he shall adopt the following procedure,-
     • (i) 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;
     • (ii) if he is of opinion that such instrument is chargeable with duty and is not duly stamped, he shall require the payment of proper duty or the amount required to make up the same, together with 2 a penalty at the rate of two percent of the amount of the deficient duty per month or part thereof for the period during which the instrument remained unstamped or insufficiently stamped or twenty five percent of the deficient stamp duty, whichever is higher, but not exceeding two times of the deficient stamp duty: Provided that, when such instrument has been impounded only because it has been written in contravention of section 13 or section 14, the Collector may, if he thinks, fit, remit the whole penalty prescribed by this section.
2. (2) Every certificate under clause (a) of sub-section (1), shall for the purpose of this Act, be conclusive evidence of matters stated therein.
3. (3) Where an instrument has been sent to the Collector under subsection (2) of section 42, the Collector shall, when he has dealt with it as provided by this section, return it to the impounding officer.

If any instrument chargeable with duty and not duly stamped under this Act, is produced by any person of his own motion before the Collector within one year from the date of its execution or first execution, and such person brings to the notice of the Collector the amount of the proper duty, and offers to pay to the Collector the amount of proper duty or the amount required to make up the same, and the Collector is satisfied that the omission to duly stamp such instrument has been occasioned by accident, mistake or urgent necessity he may, instead of proceeding under section 37 and 44 receive such amount and proceed further as hereinafter provided: Provided that where any instrument executed or first executed is brought to the Collector after the expiration of one month from the date of its execution or first execution, such instrument shall be chargeable with duty as applicable at the time of its presentation before the Collector under this section.

1. (1) When the duty and penalty, if any, leviable in respect of any instrument have been paid under section 39, section 44 or section 45, the person admitting such instrument in evidence or the Collector, as the case may be, shall certify by endorsement thereon that the proper duty or, as the case may be, the proper duty and penalty (stating the amount of each) have been levied in respect thereof, and the name and residence of the person paying them.
2. (2) Every instrument so endorsed shall thereupon be admissible in evidence, and may be registered and acted upon and authenticated as if it has 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 to such a person for whom he may direct: Provided that,--
   • (a) no instrument which has been admitted in evidence upon payment of duty and a penalty under section 39, shall be so delivered before the expiration of one month from the date of such impounding, or if the Collector has certified that its further detention is necessary and has not cancelled such certificate;
   • (b) nothing in this section shall affect the order XII, rule 9 of the Code of Civil Procedure, 1908 (Act No. 5 of 1908).

The taking of proceedings or the payment of stamp duty, surcharge if any and penalty under this Chapter in 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: 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 Collector that the offence was committed with an intention of evading payment of the proper duty.

1. (1) When any duty or penalty has been paid under section 39, section 41, section 44 or section 45, by any person in respect of any instrument, and by agreement or under the provisions of section 32, or any other enactment in force at the time such instrument was executed, some other person was bound to bear the expense of providing the proper stamp for such instrument, the first mentioned person shall be entitled to recover from such other person the amount of the duty or penalty so paid.
2. (2) For the purpose of such recovery any certificate granted in respect of such instrument under this Act shall be conclusive evidence of the matters therein certified.
3. (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 and if the Court does not include the amount in such order, no further proceedings for the recovery of the amount shall be maintainable.

1. (1) Where any penalty is paid under section 39 or section 44, the Chief Controlling Revenue Authority may, upon application in writing made within one year from the date of the payment, refund such penalty wholly or in part.
2. (2) Where, in the opinion of the Chief Controlling Revenue Authority, Stamp duty in excess of that which is legally chargeable has been charged and paid under section 39 or section 44, such authority may upon application in writing made within three months of the order charging the same, refund the excess. 1 (3) Where stamp duty in excess of that which is legally chargeable has been charged or paid on the instrument at the time of the registration of such instrument the State Government or any officer authorized by the State Government by notification may, upon application in writing made within six months from the date of registration, refund the excess.

1. (1) If any instrument sent to the Collector under sub-section (2) of section 42 is lost, destroyed or damaged during transmission, the person sending the same shall not be liable for such loss, destruction or damage.
2. (2) When any instrument is about to be so sent, the person from whose possession it came into the hands of the person impounding the same, may require a copy thereof to be made at the expense of such first mentioned person and authenticated by the person impounding such instrument.

1. (1) Notwithstanding anything contained in the Registration Act, 1908 (Act No. 16 of 1908) and the rules made thereunder as inforce in Rajasthan where, in the case of any instrument relating to an immovable property chargeable with an advalorem duty on the market value of the property as set forth in the instrument, the registering officer has, while registering the instrument, reasons to believe that the market value of the property has not been truly set forth in the instrument, he may either before or after registering the instrument, send it in original to the Collector for taking action under sub-section (3).
2. (2) When through mistake or otherwise any instrument which is undervalued and not duly stamped is registered under the Registration Act, 1908, the registering officer may call for the original instrument from the party and, after giving the party liable to pay stamp duty an opportunity of being heard and recording the reasons in writing and furnishing a copy thereof to the party, impound it and on failure to produce such original instrument by the party, a true copy of such instrument taken out from the registration record shall, for the purposes of this section, be deemed to be the original of such instrument and send it to the Collector for taking action under sub-section (3). 1(3) On receipt of the instrument under sub-section (1) or (2), the Collector shall, after giving the parties a reasonable opportunity of being heard and after holding an enquiry in the prescribed manner, determine the market value and stamp duty including the penalty at the rate of two percent of the amount of the deficient duty per month or part thereof for the period during which the instrument remained unstamped or insufficiently stamped or twenty five percent of the deficient stamp duty whichever is higher but not exceeding two time of the deficient stamp duty and surcharge, if any, payable thereon and if the amount of stamp duty including penalty and surcharge, if any, so determined exceeds the amount of stamp duty, including penalty and surcharge, if already paid, the deficient amount shall be payable by the person liable to pay the stamp duty including penalty and surcharge, if any.
3. (4) Where it appears to a person having by law or consent of parties authority to receive evidence or a person incharge of a public office, during the course of inspection or otherwise, except an officer of a police, that an instrument is undervalued such person shall forthwith make a reference to the Collector in that matter. 2 (5) The Collector may, suo-moto or on a reference mad under subsection (4) call for any examine any instrument not referred to him under sub-section (1) or (2), from any person referred to in subsection (4) or the executants or any other person for the purpose of satisfying himself as to correctness of the market value of the property, and if after such examination, he has reason to believe that the market value of such property has not been truly set forth in the instrument, he may determine in accordance with the procedure provided in sub-section (3) the market value and the amount of stamp duty, if any, payable thereon together with a penalty at the rate of two percent of the amount of the deficient duty per month or part thereof for the period during which the instrument remained unstamped or insufficiently stamped or twenty five percent of the deficient stamp duty, whichever is higher, but not exceeding two times of the deficient stamp duty, which shall be payable by the person liable to pay the stamp duty and penalty.
4. (6) Where for any reason the original document called for by the Collector under sub-section (5) is not produced or cannot be produced, the Collector may, after recording the reasons for its not production, call for a certified copy of the entries of the document from the registering officer concerned and exercise the power conferred on him under sub-section (5).
5. (7) For the purpose of inquiries under this section, the Collector shall have power to summon and enforce the attendance of witnesses. Including the parties to the instrument or any of them, and to compel the production of documents by the same means, and so far as may be in the same manner, as is provided in the case of civil court under Code of Civil Procedure 1908 (Act 5 of 1908).

With a view to rectifying any mistake apparent from the record, the Collector may amend any order made by him under this Act, within 1[two years] of the date of order either on his own motion or on the mistake being brought to his notice by person affected by the order: Provided that if any such amendment is likely to affect any person prejudicially, it shall not be made without giving to such person reasonable opportunity of being heard. 2 52-A. Reopening of ex parte orders--

1. (1) Where an order has been passed by the Collector ex parte under this Act, the aggrieved person may apply to the Collector for reopening of such order within thirty days from the date of communication of such order to him on the grounds that he did not receive the notice or summons issued to him in the matter or that he was prevented by sufficient cause from complying with any notice or summons issued to him.
2. (2) If the Collector is satisfied with the ground specified in the application made under sub-section (1), he shall reopen the ex parte order and after hearing the aggrieved person may pass such order as he may think proper in the circumstances of the matter within three months from the date of receipt of the application under sub-section (1). 3 52-B. Revision by the Inspector General of Stamp.-
3. (1) The Inspector General of Stamp may suo motu or otherwise, call for and examine the record of any proceeding under Chapter III, IV and V of this Act, and if he considers that any order passed therein by Collector is either erroneous or prejudicial to the interest of the State revenue, he may, after having made or after having caused to be made such enquiry as he considers necessary, and after having given to the party concerned a reasonable opportunity of being heard, pass such order or issue such direction as he deems proper under the circumstances of the case.
4. (2) No order or direction under sub-section (1) shall be passed or issued by the Inspector General of Stamp after expiry of a period of five years from the date on which the order sought to be revised was passed..

1. (1) Notwithstanding anything contained in the Registration Act, 1908 (Act 16 of 1908) and the rules made there under as in force in Rajasthan, where the registering officer has, while registering a document or instrument, reasons to believe that the nature of the document or instrument has not been correctly mentioned, he may, either before or after registering such document or instrument, send it, in original, to the Collector for taking action under sub- section (3).
2. (2) When through mistake or otherwise any instrument which is misclassified and not duly stamped, is registered under the Registration Act, 1908 (Act No. 16 of 1908), the registering officer may call for the original instrument from the party and, after giving the party liable to stamp duty an opportunity of being heard and recording the reasons in writing and furnishing a copy thereof to the party, impound it and on failure to produce such original instrument by the party, a true copy of such instrument taken out from the registration record shall, for the purposes of this section, be deemed to be the original of such instrument and send it to the Collector for taking action under sub-section (3). 1(3) On receipt of document or instrument under sub-section (1) or (2), the Collector shall, after giving the parties a reasonable opportunity of being heard, determine the correct nature of the document or instrument and the stamp duty including the penalty at the rate of two percent of the amount of the deficient duty per month or part thereof for the period during which the instrument remained unstamped or insufficiently stamped or twenty five percent of the deficient stamp duty, whichever is higher, but not exceeding two times of the deficient stamp duty, and surcharge if any payable thereon and may require the payment of the stamp duty including penalty and surcharge, if any, so determined or the amount required to make up the same.
3. (4) Where it appears to a person having by law or consent of parties authority to receive evidence or a person incharge of a public office, during the course of inspection or otherwise, except an officer of a police that a document or an instrument has not been correctly mentioned while registering it, such person shall forth with make a reference to the Collector to determine the correct nature thereof. 2 (5) The Collector may, suo-motu or on a reference made under subsection(4) or otherwise call for and examine any document or instrument not referred to him under sub-section (1) or (2), from any person referred to in sub-section (4) or the executant or any other person, which has been registered and returned to the executant or any other person for the purpose of satisfying himself as to the correctness with regard to the nature of the document or instrument and if he is satisfied, after giving the parties a reasonable opportunity of being heard, that the nature of document or instrument had not correctly been mentioned or determined, he may determine the correct nature of the document or instrument and the stamp duty, if any, payable thereon together with a penalty at the rate of two percent of the amount of the deficient duty per month or part thereof for the period during which the instrument remained unstamped or insufficiently stamped or twenty five percent of the deficient stamp duty, whichever is higher, but not exceeding two times of the deficient stamp duty, and require payment of stamp duty including penalty, if any, so determined or the amount require to-make up the same.
4. (6) Where for any reason the original document or instrument called for by the Collector under sub-section (5) is not produced or cannot be produced, he may call for a certified copy of the document or instrument from the registering officer concerned and exercise the power conferred upon him in sub-section (5).

1. (1) Notwithstanding anything herein before contained, the registering officer shall, before making reference to the Collector under this Act, intimate to the parties concerned about the reference proposed to be made by him.
2. (2) In case the person liable to pay the duty offers to pay the amount of duty chargeable on such instrument, the registering officer shall, on payment of such duty, certify it on the instrument by endorsement and shall not make the references.

1. (1) If it appears to any registering officer or any other person that an instrument relating to a transaction compulsorily registerable under section 17 of the Registration Act, 1908 (Act No. 16 of 1908) has not been presented for registration with a view to avoiding payment of stamp duty or for any other reason, he shall immediately inform the Collector concerned for taking necessary action under the Stamp Law.
2. (2) On receipt of information under sub-section (1) or suomotu, the Collector shall issue a notice to the party/parties referred to in the information received, with a view to ensuring that the instrument is presented alongwith full facts and circumstances as required under section 30 of the Act to determine the liability for payment of stamp duty.
3. (3) Upon service of notice where the instrument in question is presented before the Collector, he shall proceed as provided by section 51 and/or 53 of the Act, as the case may be.
4. (4) Where the party/parties served with notice do not present the instrument and/or appear before the Collector to 1[refute] the presumption of the information in question being correct, the Collector shall proceed to enquire into the correctness of the information in such manner as he deems fit.
5. (5) After the aforesaid enquiry, where it appears to the Collector that the instrument in question has not been presented for registration with a view to avoiding stamp duty, it shall be deemed to be a violation of section 30 of the Act and if such non production is with a view to concealing the consideration. if any, and all other facts and circumstances affecting the chargeability of the said instrument with duty, and the determination of such duty, the Collector shall launch a prosecution against the person concerned under section 73 or 75 of the Act, as the case may be.

1(1) All duties, penalties and other sums required to be paid under this chapter or under chapterIII may be recovered by the Collector by distress and sale of the movable or immovable property of the person, from whom the same are due, or by any other process for the time being in force for the recovery of arrears of land revenue.

1. (2) All duties, penalties and other sums required to be paid under this chapter or under chapter III shall be a charge on the property which is the subject matter of the instrument.
2. (3) An entry of the charge referred to in sub-section (2) shall be made in the indices specified in the Registration Act, 1908 (Central Act No. 16 of 1908) and such entry shall be deemed to be a notice under the said Act.
3. (4) Where the subject matter of the instrument is-
   • (i) a revenue land, a copy of the charge entered into the indices under sub-section (3) shall be sent to the Tehsildar concerned who shall enter the information in the land records; and
   • (ii) a land vested in, or placed at the disposal of, a local authority or a building or any part thereof situated within the area of a local authority, a copy of the charge entered into the indices under sub-section (3) shall be sent to the local authority concerned which shall get the information entered into the records maintained in respect of such land or building, as the case may be. 256-A. Power of Inspector General of Stamps to reduce or waive interest and penalty--
4. (1) Notwithstanding anything contained in this Act, Inspector General of Stamps may on an application made in this behalf by a defaulter, reduce or waive the amount of interest or penalty or both upto a maximum limit of rupees twenty five thousand if the defaulter agrees to deposit the remaining amount of duties, penalties, interest and any other sums required to be paid by him under this Act within thirty days from such order.
5. (2) If the defaulter fails to deposit the amount specified in subsection (1) within the time specified in that sub-section, the order of reduction or waiver passed under sub-section (1) shall stand withdrawn on the expiry of aforesaid period of thirty days.

Notwithstanding anything contained in the Indian Stamp Act, 1899 (Act No. 2 of 1899), no certificate or endorsement there-under in respect of an instrument chargeable in the State of Rajasthan with a higher rate of duty under this Act, shall be received in evidence, or be, in any way, valid, in respect of the payment of duty on such instrument unless the duty chargeable at the rates, provided in this Act has been paid, on such instrument.