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IN THE HIGH COURT OF JUDICATURE AT BOMBAY
SHARMILA U.DESHMUKH
Neepa Real Estates Pvt. Ltd. – Appellant
Versus
State of Maharashtra – Respondent
| Table of Content |
|---|
| 1. facts of mortgage and loan agreements. (Para 2 , 3 , 4 , 5 , 15) |
| 2. arguments regarding application of stamp act. (Para 6 , 7 , 8 , 9 , 12 , 17) |
| 3. court's analysis of section applicability. (Para 10 , 11 , 18 , 24 , 25 , 26) |
| 4. distinction between distinct transactions. (Para 28 , 31) |
| 5. final dismissal of the petition. (Para 35 , 36) |
JUDGMENT :
SHARMILA U. DESHMUKH, J.
1. Rule. Rule made returnable forthwith by consent and taken up for final disposal.
2. The Petition impugns the order dated 22nd December, 2021 passed by Respondent No.2-Revisional Authority in Revision Case No.134 of 2018 arising out of order of Collector of Stamps levying deficit stamp duty of Rs 40,00,000/- alongwith penalty of Rs.32,00,000/-.
3. The facts required to be exposited as pleaded are that the Petitioner and its group company Sheth Creators Pvt Ltd are in the business of real estate and development and were in need of funds in the year 2017. For availing financial assistance, the Petitioner and Sheth Creaters Pvt Ltd approached Indiabulls Housing Finance Limited (Indiabulls). Four separate loan agreements were executed on 22nd December, 2017 for Rs.200 Crores, 28th February, 2018 for Rs.145
The mortgage deed securing multiple loan agreements constitutes distinct transactions requiring separate stamp duty assessments under Section 5 of the Stamp Act.
Unregistered agreement for sale with possession, stamped as conveyance under amnesty, is principal instrument under Section 4; subsequent registered sale deed is other instrument attracting fixed dut....
Determination of stamp duty – In matters of stamp duty, decisive factor is not nomenclature assigned to instrument, but substance of rights and obligations it embodies – Court is duty-bound to ascert....
Stamp duty under the Indian Stamp Act applies only to written instruments evidencing agreements; oral agreements do not create a taxable event.
In Court-ordered sales, stamp duty applies only to the sale consideration, not to market value, as established by the Transfer of Property Act.
Stamp duty leviable on single NCLT sanction order of composite amalgamation as instrument, not underlying transactions; Section 5 inapplicable even for multiple transferors.
Stamp duty is on instrument and not on transaction – For several documents to form part of a single transaction, there must be a transaction in furtherance of which several other documents are execut....
The court affirmed that all components of the sale, including outstanding mortgage obligations, must be considered for stamp duty valuation, adhering strictly to statutory definitions.
Allowance for spoiled stamps – As per tenor of instrument, hence there was no unjust enrichment of State because stamp duty paid to it was as per provisions of Stamp Act. No doubt, Stamp Act provides....
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