Section 12

Chapter II: STAMP-DUTIES A, Of the Liability of Instruments to Duly 3. Instruments chargeable with duty.—Subject to the provisions of this Act and the exemptions contained in Schedule |, the following instruments shall be chargeable with duty of the amount indicated in that Schedule as the proper duty therefor, respectively, that is to say:— (a) 'every instrument mentioned in that: previously executed by any person, IS execute first day of July, 1899; (b) every bill of exchange pay note drawn or made out 0 paid, or presented for acceptan or otherwise negotiated, in India; and (c) every instrument (other than a bill of exchange or promissory note) mentioned in that Schedule, which not having been previously executed by any person, is executed oul of India on or after that day, relates to any property situate, or to matter or thing done or to be done, in India and is received in India; "Provided that, except as otherwise expressly provided, in this Act, and notwithstanding anything contained in clauses (a), (b) or (c) of this section or in Schedule |, the amount indicated in Schedule IA shall, subject to the exemptions contained in that Schedule, be the duty chargeable on the following instruments, mentioned in clauses (aa) and (bb) of this proviso, as the proper duty therefore respectively:— (aa) every instruments, mentioned in Schedule IA as chargeable with duty under that Schedule, which, not having been previously executed by any person, is executed in Bihar on or after the first day of January, 1938; and (bb) every instrument, mentioned in Schedule IA as chargeable with duly under that Schedule, which, not having been previously executed by any person, is executed out of Bihar on or after the first day of January, 1938 and relates to any property situated, or to any master or thing done or to be done, in Bihar and is received in Bihar:] Provided '[also] that no duty-shall be chargeable in respect of— (1) 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; (2) 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 properly of or in any ship or vessel registered under the Merchant Shipping Act, 1897 (5) and 58Vicl, c (60) or under Act 19 of 1838 or the Indian Registration of Ships Act, 1841 (10 of 1841), as amended by subsequent Acts. 2{ "Provided further also that any entry in Schedule IA for the State of Bihar ————— at Schedule which, not having been din India on or after the able otherwise, than on demand or promissory f India on or after that day and accepted or ce or payment, or endorsed, transferred 7. Ins. by Bihar Act 6 of 1937. 2. Ins. by Bihar Finance Act 11 of 2002. | Section 12: Cancellation of adhesive stamps 12. Cancellation of adhesive stamps.—(1) (a) Whoever affixes any adhesive stamp to an 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 _ (b) Whoever 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, cancél the same so that it cannot be used again. (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, deemed to be unstamped. ____{3) The person required by sub-section (1) to cancel an adhesive stamp may cancel it by writing on or across the stamp his name or initials or the name or initials of his firm with the true date of his so writing, or in any other effectual manner 13. Instruments stamped with impressed stamps how to be written.— 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. 14, Only one instrument to be on same stamp.—No second Instrument chargeable with duty shall be written upon a piece of stamped paper upon which an instrument chargeable with duty has already been written: 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 ihe payment or delivery of which is secured thereby. Comments & Case-law : [Undervalued Instrument.— Where neither stamp duty nor registration fee had been paid on the value of the instrument in question, the Collector has jurisdiction to determine the market value on consideration and the amount of stamp duty to be imposed. Period of limitation prescribed for reference to Collector also will have no application in such cases, State of Punjab vs.Mahajan Sabha,(1996)1 SCC 538. A lease for more than one year in respect of right to catch fish is an "instrument" under