Bharatiya Nyaya Sanhita: Section 185 – Erasure of mark denoting that stamp has been used

Whoever, fraudulently or with intent to cause loss to Government, erases or removes from a stamp issued by Government for the purpose of revenue, any mark, put or impressed upon such stamp for the purpose of denoting that the same has been used, or knowingly has in his possession or sells or disposes of any such stamp from which such mark has been erased or removed, or sells or disposes of any such stamp which he knows to have been used, shall be punished with imprisonment of either description for a term which may extend to three years, or with fine, or with both.

Simplified Explanation

This section addresses the fraudulent removal or erasure of marks on government-issued stamps that indicate the stamp has already been used for the purpose of revenue collection.

Key Provisions

1. Offenses Under This Section:
   • It is an offense if a person fraudulently erases or removes any mark on a government-issued stamp that indicates it has already been used.
   • Additionally, it is an offense if a person possesses, sells, or disposes of any stamp from which such a mark has been erased or removed, knowing that the stamp was previously used.
2. Punishment for the Offense:
   • A person found guilty of this offense shall be punished with:
     • Imprisonment of either description (simple or rigorous) for a term which may extend to three years.
     • Alternatively, or additionally, the person may be fined, or face both imprisonment and fine.

Explanation and Key Concepts

1. Government Stamp:
   • A government-issued stamp is typically used to indicate that a certain duty or tax has been paid, such as in the case of stamp duties applied to legal documents or financial transactions.
2. Mark Denoting the Stamp Has Been Used:
   • A mark is placed on the stamp to show that it has been used for its intended purpose, such as affixing it to a document to pay stamp duty. This prevents the same stamp from being reused fraudulently.
3. Erasure or Removal of Marks:
   • Erasing or removing marks from a used stamp is considered a fraudulent act because it allows the stamp to be reused, circumventing the payment of the required duties and causing a loss to the government.
4. Possession and Sale of Used Stamps:
   • It is also an offense if a person possesses, sells, or disposes of any stamp that has been tampered with (i.e., the mark indicating it has been used has been erased or removed). The sale or possession of a previously used stamp under these circumstances is considered an attempt to commit fraud.

Examples of Offenses Under Section 185

1. Erasure of Mark:
   • A person takes a stamp that has been used for payment of duties, and erases the mark that indicates the stamp has already been used. They then attempt to reuse the stamp on another document, thereby defrauding the government.
2. Possessing and Selling Erased Stamps:
   • A person might possess stamps from which the marks have been removed and attempt to sell or use them for the purpose of avoiding the payment of stamp duty or taxes, thereby committing fraud.
3. Fraudulent Intent to Avoid Tax:
   • A person who knowingly sells or disposes of stamps that have been tampered with, intending that the stamps will be used to avoid paying proper stamp duty or taxes, is committing an offense under this section.

Penalties Under Section 185

• Imprisonment: The punishment can include imprisonment of either description (simple or rigorous) for a term that may extend up to three years.
• Fine: The person may also be liable for a fine, or both imprisonment and fine may be imposed.

Purpose and Rationale

1. Preventing Tax Evasion:
   • This section is designed to prevent tax evasion and ensure that stamps, which are used to pay government duties, cannot be reused fraudulently by tampering with the mark of usage.
2. Protecting Government Revenue:
   • The law seeks to protect the integrity of the stamp duty system by ensuring that once a stamp has been used for its intended purpose, it cannot be reused without proper payment being made.
3. Deterrence of Fraudulent Activities:
   • The penalties for erasure or removal of marks serve as a deterrent to anyone attempting to fraudulently reuse stamps, thereby ensuring that the public is discouraged from engaging in such unlawful acts.

Conclusion

Section 185 of the Bharatiya Nyaya Sanhita 2023 criminalizes the fraudulent erasure or removal of marks on government-issued stamps that denote they have been used for revenue purposes. The law aims to prevent the fraudulent reuse of stamps, ensuring the proper collection of duties and protecting government revenue. The section imposes serious penalties, including imprisonment for up to three years and fines, to deter fraudulent actions.