Stamp duty applies to a power of attorney executed abroad for use in India, and unstamped instruments may be impounded.

An instrument executed outside India but intended for use in India is chargeable to stamp duty under the Indian Stamp Act, 1899. When such an instrument is produced before an authority empowered to receive evidence or before a public office and appears not duly stamped, Section 33 authorises impounding. The Tribunal therefore had jurisdiction to impound the unstamped power of attorney and to require payment of the deficient duty together with statutory penalty under Section 40(1)(b).

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Issues: Whether a power of attorney executed outside India, but intended to be used in India, was chargeable with stamp duty and liable to be impounded when produced before the Tribunal.

Analysis: An instrument executed outside India and relating to a matter to be used in India is chargeable to duty under the Indian Stamp Act, 1899. Where such an instrument is produced before a person or authority empowered to receive evidence or before a public office, and it appears to be not duly stamped, Section 33 authorises impounding. The Tribunal therefore had jurisdiction to impound the unstamped power of attorney and to require payment of the deficient duty together with penalty under Section 40(1)(b).

Conclusion: The power of attorney was rightly impounded and the appellant was liable to deposit stamp duty of Rs. 10/- with penalty of Rs. 100/-, totalling Rs. 110/-.

Ratio Decidendi: An instrument executed outside India and intended for use in India is chargeable to stamp duty, and any authority before whom it is produced may impound it if it is not duly stamped and require payment of duty and statutory penalty.

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