Revenue stamps on share certificates?

On a plain reading of Rule 3 (1)(i) of the Bombay Stamp Rules, 1939 one can conclude that the stamps issued by Maharashtra Govt. only can be used for share certificates. However many companies including big names like Reliance have been using revenue stamps on share certificates for so many years.

It is hard to believe that Maharashtra Govt. have been overlooking this misuse of the revenue stamps and the resultant loss of revenue for so many years and has never issued a clarification or prosecuted any company for violation.

Thereby one can deduce that there must be an internal arrangement of revenue sharing and the use of revenue stamps on share certificates must be valid.

Dear friend/members,

The point put forward that revenue stamp income goes to Central Government is not correct. As the State gets the power to levy stamp duty from the Constitution of India. As per the Constitution though the Central Government has the power to prescribe the rates of stamp duty in certain cases, the State government is empowered to levy/collect and appropriate the revenue. Just as in the case of Central Sales Tax.