Section 263 IPC: Erasure of Mark Denoting That Stamp Has Been Used
Section 263 of the Indian Penal Code, 1860 dealt with fraudulent interference with a Government revenue stamp after a mark had been placed on it to show that the stamp had already been used. This article explains the provision as it stood immediately before the Bharatiya Nyaya Sanhita, 2023 came into force.
Text of Section 263 IPC
Whoever, fraudulently or with intent to cause loss to Government, erases or removes from a stamp issued by Government for the purpose of revenue, any mark, put or impressed upon such stamp for the purpose of denoting that the same has been used, or knowingly has in his possession or sells or disposes of any such stamp from which such mark has been erased or removed, or sells or disposes of any such stamp which he knows to have been used, shall be punished with imprisonment of either description for a term which may extend to three years, or with fine, or with both.
Meaning and Scope of Section 263 IPC
The provision protected Government revenue against fraudulent reuse or circulation of revenue stamps. A cancellation or similar mark placed on a revenue stamp ordinarily indicates that the stamp has already served the purpose for which the revenue was paid. Section 263 addressed conduct intended to defeat that safeguard.
The section was wider than merely physically erasing a cancellation mark. It also covered specified dealings with stamps after such a mark had been erased or removed, as well as selling or disposing of a stamp known to have already been used.
Essential Ingredients of the Offence
Depending on the form of conduct alleged, the prosecution had to establish the facts bringing the accused within the statutory language. The principal elements included:
- the subject matter was a stamp issued by Government for the purpose of revenue;
- a mark had been put or impressed on the stamp to denote that it had been used;
- the accused fraudulently, or with intent to cause loss to Government, erased or removed that mark; or
- the accused knowingly possessed, sold or disposed of a stamp from which such a mark had been erased or removed; or
- the accused sold or disposed of a stamp knowing that it had already been used.
Meaning of Fraudulently Under the IPC
Section 25 IPC provided that a person is said to do a thing fraudulently if he does that thing with intent to defraud but not otherwise. This definition is relevant where Section 263 is invoked on the basis that the erasure or removal was done fraudulently.
Section 263 also separately used the expression "with intent to cause loss to Government." The statutory language therefore focused not merely on physical alteration of a stamp but on the required dishonest or loss-causing purpose, or the specified knowledge in cases involving possession, sale or disposal.
What Conduct Was Covered?
Erasing or removing the used-stamp mark
Fraudulently removing the mark placed on a Government revenue stamp to show that it had already been used fell within the first limb of the section when the required intent existed.
Knowing possession of an altered stamp
The section also covered knowing possession of a stamp from which the mark showing prior use had been erased or removed.
Selling or disposing of an altered or used stamp
A person could also fall within the provision by knowingly selling or disposing of a stamp whose used mark had been erased or removed, or by selling or disposing of a stamp known to have already been used.
Punishment Under Section 263 IPC
The prescribed punishment was imprisonment of either description for a term extending up to three years, or fine, or both. "Either description" permitted the imprisonment to be of the descriptions recognized by the IPC, subject to the sentence lawfully imposed by the court.
CrPC Classification Before BNS and BNSS
| Particular | Pre-BNS and pre-BNSS position |
|---|---|
| Punishment | Imprisonment up to 3 years, or fine, or both |
| Cognizable | Yes |
| Bailable | Yes |
| Triable by | Magistrate of the First Class |
| Compoundable | No |
Section 263 and Related Government Stamp Offences
Section 263 formed part of Chapter XII of the IPC dealing with offences relating to coin and Government stamps. It should be read in its statutory context with nearby provisions concerning removal of a used stamp from a document, reuse of a Government stamp, and fictitious stamps.
For example, Section 262 IPC dealt with using a Government revenue stamp known to have been used before, whereas Section 263 specifically addressed erasure or removal of the mark denoting use and the specified knowing dealings in such stamps.
Position After the Bharatiya Nyaya Sanhita, 2023
The Indian Penal Code, 1860 was replaced for the new criminal-law regime from 1 July 2024. The corresponding provision in the Bharatiya Nyaya Sanhita, 2023 is Section 185, titled "Erasure of mark denoting that stamp has been used." This page, however, is intentionally focused on Section 263 IPC and the law applicable before implementation of the BNS.
Frequently Asked Questions
What was Section 263 IPC?
It was the IPC provision dealing with fraudulent erasure or removal of a mark denoting that a Government revenue stamp had been used, along with specified forms of knowing possession, sale or disposal of such stamps.
What was the maximum punishment?
The maximum term of imprisonment was three years. The court could alternatively impose a fine, or impose both imprisonment and fine.
Was Section 263 IPC bailable?
Yes. Under the CrPC-era classification, the offence was cognizable and bailable.
Which court could try the offence?
Under the pre-BNSS procedural classification, it was triable by a Magistrate of the First Class.