In Brief
The Supreme Court held that the state of Rajasthan has the power to levy and collect stamp duty on insurance policies issued within its territory under the concurrent legislative entry 44, using rates prescribed by Parliament under entry 91 of the Constitution's Seventh Schedule. The 1952 Adaptation Act, receiving Presidential assent, prevails over the central Stamp Act. However, since the state admitted the unavailability of prescribed insurance stamps and provided no payment mechanism for such instruments, the appellant was justified in purchasing stamps from Maharashtra. The Court dismissed the appeal but directed the state not to demand recovery of the stamp duty amounts.
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