Section 263 of Indian Penal Code, 1860 – Explained!
The prosecution must establish that the accused had intention to defraud or cause loss to the government. There must be an erasure or removal of any mark from the government stamp issued for revenue. This mark should have been put or impressed upon the stamp with a view to identify that the stamp had been used. If such is not the case, then there must be possession, or selling or disposing of such stamp with the knowledge that such mark has been erased or removed from it, or there must be a selling or disposing of any such stamp by the accused about which he has knowledge that the same has been used.
The offence under this section is cognizable, bailable and non-compoundable, and is triable by magistrate of the first class.