(1)When the Collector impounds any instrument under Section 38, or receives any instrument sent to him under sub-section (2) of Section 42, not being a receipt, or a bill of exchange or a promissory note, 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 the opinion that such instrument is chargeable with duty and is not duly stamped, he shall require the payment of the amount required to make up the deficiency together with a penalty of an amount not exceeding four times the amount of deficient portion of the proper duty:Provided that, when such instrument has been impounded only because it has been written in contravention of Section 18 or Section 19, the Collector may, if he thinks fit, remit the whole penalty prescribed by this section:Provided further that no penalty shall be levied unless the party concerned has been given a reasonable opportunity of being heard.
