The first holder in ¹ [India] of any bill of exchange ³ [payable otherwise than on demand], ³*** or promissory note drawn or made out of ² [India] shall, before he presents the same for acceptance or payment, or endorses, transfers or otherwise negotiates the same in ¹ [India], affix thereto the proper stamp and cancel the same:

   Provided that,—

   (a)  if, at the time any such bill of exchange, ³*** or note comes into the hands of any holder thereof in ¹ [India], the proper adhesive stamp is affixed thereto and cancelled in manner prescribed by section 12 and such holder has no reason to believe that such stamp was affixed or cancelled otherwise than by the person and at the time required by this Act, such stamp shall, so far as relates to such holder, be deemed to have been duly affixed and cancelled;

   (b)  nothing contained in this proviso shall relieve any person from any penalty incurred by him for omitting to affix or cancel a stamp.

STATE AMENDMENT

Himachal Pradesh

   Addition of a new section 19-A.—After section 19 of the said Act the following new section shall be inserted, namely:-

   19-A.  Payment of duty on certain instruments liable to increased duty in Himachal Pradesh under clause (bb) of section 3.- Where any instrument has become chargeable in any part of India and thereafter becomes chargeable with higher rate of duty in the Himachal Pradesh under clause (bb) of the first proviso to section 3 as amended by the Indian Stamp (Himachal Pradesh Amendment) Act, 1952-

   (i)  notwithstanding anything contained in the said proviso, the amount of duty chargeable on such instrument shall be the amount chargeable on it under Schedule- I-A less the amount of duty, if any already paid on it in India,

   (ii)  in addition to the stamps, if any, already affixed thereto, such instrument shall be stamped with the stamps necessary for the payment of the amount of duty chargeable on it under clause (i) in the same manner and at the same time and by the same person as though such instrument were an instrument received in India for the first time at the time when it became chargeable with the higher duty.

[Vide Himachal Pradesh Act 4 of 1953, s. 7]