This revision has been filed under sec, 56(i) of the Indian Stamp Act (hereinafter referred to as the Act) against an order of the Collector Bhilwara dated 24.6.57 imposing a penalty of Rs. 24000/- besides a deficit stamp duty of Rs. 2399/-under sec. 40 (b) of the Act.

2. The case was heard on 9.8.1957 and it appeared necessary to issue notice to the Registrar of Companies Rajasthan as well. Shri Jit Ram Sharma has appeared on behalf of the Register. We have heard the learned counsel for the parties and have examined the record as well. Two documents were executed in favour of the Bank of Rajasthan Ltd. Bhilwara creating a pledge and hypothecation for Rs. 20 lacs each Both these documents were forwarded to the Register of Companies who holding them to have been insufficiently stamped impounded the same under sec. 33 of the Act and forwarded the originals to the Collector Bhilwara of necessary action under sec. 38 (2) of the Act. As regards the hypothecation deed the learned Collector came to the conclusion that the document was exempt from duty under Art. 40(b) of the Act read with item 47 Group J, of the Separate Revenue Department notification dated 15.2.1955 published in the Raja

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