(1) When the Collector,--
(a) Impounds any instrument under section 37, or
(b) receives any instrument sent to him under sub-section(2) of section 42, and such instrument is chargeable with a duty under this Act, he shall adopt the following procedure,-
(i) if he is of opinion that such instrument is duly stamped or is not chargeable with duty, he shall certify by endorsement thereon that it is duly stamped, or that it is not so chargeable, as the case may be;
(ii) if he is of opinion that such instrument is chargeable with duty and is not duly stamped, he shall require the payment of proper duty or the amount required to make up the same, together with a penalty at the rate of two percent of the amount of the deficient duty per month or part thereof for the period during which the instrument remained unstamped or insufficiently stamped or twenty five percent of the deficient stamp duty, whichever is higher, but not exceeding two times of the deficient stamp duty: Provided that, when such instrument has been impounded only because it has been written in contravention of section 13 or section 14, the Collector may, if he thinks, fit, remit the whole penalty prescribed by this section.
(2) Every certificate under clause (a) of sub-section (1), shall for the purpose of this Act, be conclusive evidence of matters stated therein.
(3) Where an instrument has been sent to the Collector under subsection (2) of section 42, the Collector shall, when he has dealt with it as provided by this section, return it to the impounding officer.