The main legal point established in the judgment is the determination of stamp duty payable on conveyance deed based on the market value of the property at the time of execution of the conveyance deed after deducting the amount of stamp duty previously paid during registration of the agreement for sale.

I.P. Mukerji, J.

This case raises a most important and interesting question of law. Suppose the law lays down that for sale of an immovable property stamp duty at a particular rate is payable. Now, this sale may be effected by one instrument or by several instruments, cumulatively having the same effect. What is the stamp duty that is the chargeable and payable under the Indian Stamp Act, 1899 read with the relevant Rules, on each document or on all the documents together?

2. The dispute in the case has arisen out of an agreement for sale of an immovable property. As is usual in land transactions, by an agreement for sale dated 12th May, 2010, the appellant No.1 proposed to purchase premises No.119, Park Street, Kolkata – 700016, from the Ghosh family at a total consideration of Rs.12 crores subject to a lease hold interest of a lessee therein arising out of a lease dated 24th January, 1979.

3. On or about 12th May, 2010 the said instrument was presented for registration before the Additional Registrar of Assurance II. The Respondent No.5 assessed the market value of the property at Rs.30,34,21,962/- and stamp duty payable thereon as Rs.2,12,39,548/-. The petitioner No.1 paid 50% of the duty.

4. One half share of the premises was owned by four members of the Ghosh family, Shima, Jyotirmay, Avijit and Surojit whereas the other half share was owned by Jayeeta Singha Roy.

5. After execution of the agreement for sale some disputes arose between the petitioner No.1 and the branch of the family represented by Jayeeta. They decided to purchase the other undivided half of the property for Rs.6 crores from the other members of the family.

6. The cause of action of this writ application arose when on 30th August, 2012, the respondent No.5 demanded an additional stamp duty Rs.1,15,25,084/- for registration of the conveyance in respect of this half share. The basis of the demand was that the valuation of the premises on 12th May, 2010 was taken as Rs.30,34,21,962. The market value on the date of the demand was assessed at Rs.31,63,55,481/-. After adjustment of the stamp duty already paid as stated above, the unpaid stamp duty was assessed Rs.115,25,054/-.

7. The basis of the demand dated 30th August, 2012 was a circular dated 29th February, 2012 issued by the Additional Secretary Finance Department and Inspector General of Registration and Commissioner of Stamp Revenue, West Bengal. This circular is inserted below.

“Circular No.3 for 2012

A question has been raised in connection with the chargeability of stamp duty on a deed of conveyance in furtherance of an ‘Agreement to Sale’ registered before.

In exercise of the power conferred under Section 9 of the Indian Stamp Act, 1899, a proviso has been inserted in Article 23 of Schedule 1A of the Indian Stamp Act, 1899 by Notification No.1191-L dated 01.07.1994 for determination of stamp duty payable.

The proviso is noted below:

‘Provided that in any case were sale or lease-cum-sale agreement is executed and is stamped with the ad valorem stamp required for such agreement under item (d) of Article 5, whichever is greater.’

Hence, there is no confusion in this matter that the stamp duty on such conveyance deed is to be calculated on the market value of the property as on the date of execution of the conveyance deed after allowing deduction of the amount of stamp duty previously paid during registration of ‘Agreement to Sale’.

The CORD software in respect of Transaction has been built up accordingly.

Sd/-

(B. Gangopadhyay)

Addl. Secretary, Finance Deptt.

And Inspector General of Registration & Commissioner of Stamp Revenue, W.B.”

8. The contention of the appellants is that during registration of the agreement for sale the market value of the entire premises had been assessed at Rs.30,34,21,962/-. The stamp duty was assessed Rs.2,12,39,548/-. Rs.106,19,768/- representing 50% of the stamp duty was paid by the petitioner No.1. The appellants by this demand were asked to pay the balance amount between the sta