What instruments may be stamped with adhesive ? Why and how affixed stamps are cancelled as per the Indian Stamp Act, 1899?

Instruments which may stamped with Adhesive Stamps Section 11 of Indian Stamp Act, 1899 provides the provisions relating to Use of adhesive stamps. The following instruments may be stamped with adhesive stamps, namely: instruments chargeable with a duty not exceeding ten naye paise, except parts of bills of exchange payable otherwise than on demand and drawn in sets; bills of exchange, and promissory notes drawn or made out of India; entry as an advocate, vakil or attorney on the roll of a High Court; notarial acts; and transfers by endorsement of shares in any incorporated company or other body corporate. Why affixed stamps are cancelled Section 12(1)(a) of Indian Stamp Act, 1899 provides that any person affixing any adhesive stamp to any instrument chargeable with duty which has been executed by another person shall, when affixing such stamp cancel the same so that it cannot be used again. Under section 12(1)(b), an obligation has been imposed on person executing any instrument on any paper bearing an adhesive stamp, to cancel the stamp, if such cancellation has not been done, at the time of such execution. If a person fails to cancel the stamp, he becomes liable to penalty in accordance with Section 63. The object is to prevent the same stamp from being used again. Under section 12(2), any instrument bearing an adhesive stamp which has not been cancelled is deemed to be unstamped. How affixed stamps are cancelled Section 12(3) deals with the mode of cancellation of stamp. It provides that the cancellation of an adhesive stamp may be done by the person concerned by writing on or across the stamp his name or initials, or the name or initials of his firm with the true date of his so writing, or in any other effectual manner. Sub-section (3) merely lays down as a guidance one of the ways in which an adhesive stamp can be cancelled. Further, the cases decided by the courts have also held few modes as valid, which are as under: By merely drawing a line across it. Drawing of diagonal lines right across the stamps with ends extending on to the paper of the document. A cross marked by an illiterate person indicating his acknowledgement.