16.(1) The Government shall cause postage stamps to be provided of such kinds and denoting such values as it may think necessary for the purposes of this Act. (2) The Government may make rules as to the supply, sale and use of postage stamps. (3) In particular and without prejudice to the generality of the foregoing power, such rules may,–(a) fix the price at which postage stamps shall be sold;(b) declare the classes of postal articles in respect of which postage stamps shall be used for the payment of postage or other sums chargeable under this Act ;(c) prescribe the conditions with regard to perforation, defacement and all other matters subject to which postage stamps may be accepted or refused in payment of postage or other sums;(d) regulate the custody, supply and sale of postage stamps;(e) declare the persons by whom and the terms and conditions subject to which postage stamps may be sold ; and(f) prescribe the duties and remuneration of persons selling postage stamps.

¹[16A. The Government may provide for use of franking machine and make rules or supply, use and security of such machine.]

17.(1) Postage stamps provided under section 16 shall be deemed to be stamps issued by Government for the purpose of revenue within the meaning of the Penal Code, and, subject to the other provisions of this Act, shall be used for the prepayment of postage or other sums chargeable under this Act in respect of postal articles, accept where the Government directs that prepayment shall be made in some other way. (2) Where the Government has directed that prepayment of postage or other sums chargeable under this Act in respect of postal articles may be made by prepaying the value denoted by the impressions of stamping machines issued under its authority, the impression of any such machine shall likewise be deemed to be a stamp issued by Government for the purpose of revenue, within the meaning of the Penal Code.