Stamp Duty
Power and jurisdiction of the State to levy and collect stamp duty on insurance policies—Preliminary issue relating to the applicability of relevant State Law i.e. Rajasthan Stamp Law (Adaptation) Act, 1952 or the Rajasthan Stamp Act, 1998—Rajasthan Stamp Law (Adaption) Act, 1952 applies to the present case—State legislature has the legislative competence to impose and collect stamp duty on policies of insurance under Entry 44 of List III, as per the rate prescribed by the Parliament under Entry 91 of List I—For the execution of insurance policies within the State of Rajasthan, the appellant is bound to purchase India Insurance Stamps and pay the stamp duty to the State of Rajasthan.
[Para 37]