It was mainly to keep the collectors happy.
Some of the Indian States produced Service stamps purely for collectors. These Bundi ('Sacred Cows') Service stamps

were entirely redundant, because government mail travelled free at the time. Bundi
did issue proper Service stamps later

which were required for use on government mail. Properly used, they're quite scarce.
Occasionally, Service stamps were
not supposed to be sold to the general public. In the last days of Soruth State, supplies of Service stamps were running very low and the State Post Office called in and surcharged where necessary just about everything, to try to keep up supplies. That included revaluing this 1 Rupee high value down to the basic letter rate:

('Sarkari' = Service). Mint, this stamp (SG O19) is catalogued at £1400; used at £75. Some local officials even resorted to handwriting SERVICE or SARKARI onto ordinary postage stamps, when supplies ran out

Needless to say, these weren't for sale to the general public either, and you should only buy them with a BPA Certificate (which this pair has).