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Consider two instruments tendered in evidence in Himachal Pradesh under the Indian Stamp Act, 1899. An…

The instrument falls under proviso (a), so the shortfall is payable together with the greater of ₹5 and ten times the shortfall. Ten times ₹20 is ₹200, so the instrument…

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Consider two instruments tendered in evidence in Himachal Pradesh under the Indian Stamp Act, 1899. An original instrument subject to section 35 proviso (a) is short-stamped by ₹20. An unstamped receipt meets all the conditions of proviso (b) for use against its issuer. What payments cure the respective stamp defects?

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Correct answer C

The instrument falls under proviso (a), so the shortfall is payable together with the greater of ₹5 and ten times the shortfall. Ten times ₹20 is ₹200, so the instrument requires ₹20 in duty plus a ₹200 penalty. Under proviso (b), the person tendering the qualifying unstamped receipt against its issuer pays a ₹1 penalty.

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Option A

Ten times the ₹20 deficiency is ₹200, which exceeds the ₹5 floor in proviso (a).

Option B

The instrument payment is correct. The receipt penalty under proviso (b) is ₹1.

Option C

Proviso (a) requires the ₹20 shortfall plus ten times that amount, or ₹200, and proviso (b) requires a ₹1 penalty for the qualifying receipt.

Option D

Proviso (a) requires a penalty in addition to the deficit duty.

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