(1)When the Collector impounds any instrument under section 33, or receives any instrument sent to him under sub-section (2) of section 37, not being an instrument chargeable with a duty of twenty naye paise, or less, he shall adopt the following procedure:(a)if he is of opinion that such instrument is duly stamped or is not chargeable with duty, he shall certify by endorsement thereon that it is duly -stamped, or that it is not so chargeable, as the case may be;(b)if he is of opinion that such instrument is chargeable with duty and is not duly stamped he shall require the payment of the proper duty or the amount required to make up the same, together with a penalty of [an amount equal to [2 per cent of the deficient portion of the stamp duty, for every month or part thereof] [This portion was substituted for the words 'five rupees; or, if he thinks fit, an amount not exceeding ten times the amount of the property duty or of the deficient portion thereof, whether such amount exceeds or fails short of five rupees' by Maharashtra 9 of 1997, Section 11, (w.e.f. 15.9.1996).] from the date of execution of the instrument subject to the payment of a minimum penalty of rupees one hundred]:[Provided that, duty for which reduction or remission is granted by the Government under clause (a) of section 9 under any prevailing policy shall not be treated as deficient portion of duty for the purposes of calculation of penalty, if the beneficiary of such reduction or remission in duty surrenders or forgoes or has surrendered or forgone such benefit with prior approval or with no objection from the Government :] [Inserted by Maharashtra Act No. 21 of 2019, dated 23.7.2019.][[Provided further that] [This proviso was inserted by Maharashtra 22 of 2001 Section 5(a). (w.e.f. 1-5-2001.], in no case, the amount of the penalty shall exceed double the deficient portion of the stamp duty:][Provided also that] [Substituted 'Provided further that' by Maharashtra Act No. 21 of 2019, dated 23.7.2019.], when such instrument has been impounded only because it has been written in contravention of section 13 or section 14, the Collector may, if he thinks fit, remit the whole penalty prescribed by this section.
