Vayolene FTW once again!
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why did someone cut the label ?
Unfortunately, this happens more often with larger pieces than you might think. If parts get creased or otherwise damaged, then at least some of it can be saved. Just a guess here.
With something like this, I've also seen each stamp and label mounted separately in order to fit an album. There's also been things like the 1930s Canada pairs imperf between that got miscut by someone who went brain dead and made pairs by cutting through the imperf sides. Stuff happens.