Relevant part of para 46 is reproduced below:
Indian Stamp Act, 1899, Section 3, proviso (1), is as follows: "That no duty shall be chargeable in respect of any instrument executed by or on behalf of or in respect of the Government, in cases where but for this exemption the Government would be liable to pay the duty chargeable in respect of such instrument." This is a legislative declaration that but for this exemption Government would be liable to pay stamp duty in cases in which according to the rules laid down in Section 29, the liability will devolve upon Government and not upon the other party to the instrument. Such declaration is very significant in that neither in Section 29 nor in any other section is Government expressly or by necessary implication included. There is no similar exemption in favour of Government under the Court Pees Act. Government pays Court fees like other litigants and if successful, recovers the same as costs from the adversary and thus it will be seen that Government is really benefited. There is also another weighty reason against the exemption of Government from paying Court fees, for the result of such exemption would naturally be to increase the burden of Court fees upon the rest of the litigants by raising the scale of fees.
The same position continuess now also. Please note that levying of Court Fees is a State subject.