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CS Professional · Drafting, Pleadings and Appearances · Drafting of Agreements, Deeds and Documents

Under the Orissa amendment to Section 73 of the Indian Stamp Act, 1899, an officer authorised in writing by the Collector wants to seize and impound documents held by a nationalised bank to recover deficit stamp duty. Which statement is correct?

Under the Orissa amendment to Section 73, seizure of documents in a bank's custody may be made only after a notice of thirty days to make good the deficit of stamp duty. It is neither prohibited absolutely nor permitted immediately without notice.

  1. ASeizure of the bank's documents may be made only after a notice of thirty days to make good the deficit of stamp dutyCorrect
  2. BSeizure of a bank's documents is prohibited absolutely
  3. CSeizure may be made immediately without notice because banks are public bodies
  4. DSeizure requires a fourteen-day notice to the Collector

Explanation

The Orissa substituted Section 73(1) allows entry, inspection and, if necessary, seizure and impounding under acknowledgement. The proviso says seizure of documents in a bank's custody may be made only after thirty days' notice to make good the stamp duty deficit. It is not an absolute bar, and no immediate seizure is allowed.

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