(a) means, within the boundaries of the cities of Calcutta, Madras and Bombay, the Calcutta Collector, Madras and Bombay, respectively, and, without limitation, the Regional Collector, and(b) includes the Deputy Commissioner and any other official [6 [Provincial Government]], by notice in the Official Gazette, who may replace him or her.

If the Collector binds any instrument under section 33, or receives any instrument sent to him under section 38; subsection (2), which is free of charge 42 [with a maximum liability ten paise only or a letter of exchange or a letter of promise, shall apply the following procedure:If he or she considers that the instrument is properly sealed, or free of charge, he or she shall verify that it is properly sealed, or free of charge, as the case may be;If he or she considers that the instrument is charged for the work and is not properly stamped, he or she will be required to pay the applicable tax or the amount required to do the same, plus a fine of five rupees; or, if he deems it appropriate, ten times the value of the relevant value or part thereof, whether that value exceeds or falls short of five rupees; If such a tool is bound because it is written contrary to section 13 or section 14; The collector, if he deems it appropriate, must pay the full penalty imposed by this section.All certificates under subsection (a) of subsection (1), for the purposes of this Act, must be conclusive evidence of the matters referred to therein.When a tool is sent to the Collector under section 38, subsection (2), once the Collector has processed it as provided for in section, return it to the detained manager

Amendment of section 40 .– After subsection (1), the following subsections shall be inserted, namely: –

“(1-A) The collector will require, together with the amount of the missing Stamp Amount required to be paid under subsection (b) of subsection (1), payment of simple interest at half a percentage per mensem on the amount of the missing stamp tax calculated from the date of use of the instrument to date actual payment;Provided that the interest rate under this clause will be recalculated if the amount of the outstanding stamp varies by appeal or review or by any order of a competent court or authority.

(1-B) The amount of interest payable under subsection (1-A) shall be added to the required amount and shall be deducted for all purposes part of the amount required to be paid.

(1-C) Where the performance of the missing stamp duty is commemorated by any order of any court or jurisdiction and the suspension order is revoked, the interest referred to in subsection (1-A) shall be reimbursed at any time that the stay order remains valid.

(1-D) Any money paid or deposited, or deducted, or returned to a person under the provisions of this Act, shall first be adjusted to deal with stamp duty or non-payment and the surplus, if any, arising in respect of interest.Collector’s power to refund penalty paid(1) If a copy of the instrument is sent to the Collector under section 38, subsection (1), if he deems it necessary, refund any part of the fine in excess of five rupees paid in respect of. Of that tool.(2) If the instrument is detained only because it is contravened in contravention of section 13 or section 14, the Collector may refund all the fine paid.

Where the Court held that the legislature did not consider that a fine of up to ten times should ultimately be found in all cases and affirmed the same, it also issued a summary of the above-mentioned case:“the expression” if he sees fit “also appears in Section 40 (b). The same legal system as in Section 39 (b), there is no legal requirement that in all cases a fine up to ten times the value of a valid stamp duty or a defective portion should be made. The insight given to the Collector through the expression “if he thinks it appropriate” gives the Collector sufficient opportunity to use his mental faculties in determining the level of sentence that will be imposed on the case when the instrument is not properly stamped. ”The Court ruled that the judiciary should be exercised in a reasonable and not oppressive manner and that the imposition of a fine, that is, ten times the amount of work or part of it, would not be based on ‘mere fact of skipping work’.

The Court reiterated that a fine up to ten times needed to be imposed only in extreme cases as the purpose of punishment is usually to prevent and not to retaliate. The Court found in this case that there was no sufficient reason given to the collector or the High Court for the imposition of a large fine ten times.Considering the facts given and the circumstances, the Court was satisfied that this was not a case of excessive fines ten times and therefore, in order to meet the conclusions of justice the Court ordered a fine reduction of five to five times for non-stamp duty.

https://indiankanoon.org/doc/74910796/

https://www.indiacode.nic.in/show-data?actid=AC_CEN_2_2_00036_189902_1523339055436&sectionId=45524&sectionno=40&orderno=51