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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
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 Crores, 26th June, 2018 for Rs.160 Crores and 12th September, 2018 for Rs.120 Crores aggregating to Rs 625,00,00,000/-.
4. The loan agreements mandated creation of mortgage to secure the fulfillment of the obligations including payment of the dues under the loan agreement. A draft of single mortgage deed was lodged for adjudication of stamp duty under
The mortgage deed securing multiple loan agreements constitutes distinct transactions requiring separate stamp duty assessments under Section 5 of the Stamp Act.
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 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....
Agreement to sell – If instead of separate instruments, distinct matters are made subject matter of one instrument, liability to pay duty would be still found within four walls of Section 5 of Stamp ....
Suit for Specific Performance – Liability to pay stamp duty – Stamp duty is on instrument and not on transaction – It is immaterial, whether possession of property has been handed over at the time of....
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