JUDGMENT - Dr. B.P. SARAF, J.:---On 7 September, 1986, petitioners, Crest Hotels Ltd. entered into an agreement of sale of a flat being that No. 121 on 1st floor of the building named 'Madhuli' which was still to be constructed and open car parking space therein. It was lodged for registration with the Sub-Registrar of Assurances at Bombay on 29 September, 1986. The said agreement was later on cancelled by the parties by a deed of cancellation dated 6 October, 1988. The deed of cancellation was also lodged for registration with the Sub-Registrar of Assurances at Bombay. The document of cancellation was executed on a stamp paper of Rs. 10/-. The Sub-Registrar of Assurances, being of the opinion that the stamp duty prescribed under Article 25-B of Schedule 1 to the Bombay Stamp Act, 1958 ("the Act") was applicable, forwarded the same to the Assistant Stamp Superintendent, Bombay. The Assistant Stamp Superintendent, Bombay held that stamp duty under Article 25-B of Schedule I to the Act was chargeable on the deed of cancellation in question. As it was executed on a stamp paper of Rs. 10/-, the Assistant Stamp Superintendent determined the deficient stamp duty at Rs. 2,17,890/-. Penalt

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