NEW CENTRAL JUTE MILLS CO. LTD.AND ORS. vs THE STATE OF WEST BENGAL AND ORS.

The Supreme Court held that the mortgage deed executed in Uttar Pradesh must bear stamps issued by the Uttar Pradesh Government, as per the Stamp Act, 1899, specifically Sections 2(ii), 3, and 19A. The Court ruled that the first dutiable event was the execution in Uttar Pradesh, and the presence of West Bengal stamps did not suffice for it to be considered duly stamped. The Court clarified that an instrument must comply with the stamping laws of the state where it is executed, and if it becomes liable to duty in another state, it must be stamped accordingly only for any excess duty required by that state.