Indian Post Office Act, 1898
16. Provision of postage stamps and power to make rules as to them
(1) The Central 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 Central 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.