Constitution of India, 1950; Article 246 and Entry 91 of List I –The power to prescribe the rate of duty is mutually exclusive and has been clearly demarcated between the Parliament and the legislatures of the stat- Only the Parliament holds the exclusive power and the legislative competence under the Constitution to prescribe the rate of stamp duty on insurance policies. (Para 10-12) – However, the state legislature has the legislative competence to impose and collect stamp duty on policies of insurance under Entry 44 of List III, as per the rate prescribed by the Parliament under Entry 91 of List I – The state of Rajasthan has the power to impose and collect stamp duty on insurance policies under Entry 44 of List III, albeit such duty must be imposed as per the rate prescribed by a Parliamentary legislation under Entry 91 of List I. (Para 16-19, 37)
Stamp Duty –Stamp duty must be levied as per the law in force as on the date of execution of the instrument. (Para 8)