The court emphasized that the power under Section 57 of the Stamp Act cannot be invoked without a specific instrument or document for adjudication of stamp duty, and that the Reference must be based on an actual case.

RAJIV SAHAI ENDLAW, J.

1. The Chief Controlling Revenue Authority (CCRA), Government of National Capital Territory of Delhi (GNCTD) has made this Reference under Section 57 of the Stamp Act, 1899 seeking a decision on the following issue:

“Whether the notification no.13 of 25-12-1937 extending benefit of remission in stamp duty in case of subsidiary companies as applicable in the then province of Delhi has any continuous validity and applicability in view of notification no. GSR 894 dated 30-09-1958 by which the central government extended the Indian Stamp (Punjab Amendment) Act, 1958 replacing the previous and then prevalent stamp law in union territory of Delhi w.e.f. 01-10-1958.”

2. In accordance with Section 57(2) of the Act providing for decision of such Reference by not less than three Judges of the High Court, the Reference was listed before this Bench.

3. The case stated in the Reference Petition is as under:

(i) The Delhi Laws Act, 1912 proclaiming certain parts, formerly included within the province of Punjab, to be known as province of Delhi, vide Section 7 thereof empowered extension of enactments in force in other provinces with modifications and restrictions, to Delhi.

(ii) Vide Notification dated 16th January, 1937, issued in exercise of powers under clause (a) of Section 9 of the Stamp Act remission was granted in respect of the stamp duty chargeable under Articles 23 (Conveyance) and 62 (Transfer) of Schedule-I of the Stamp Act on the instruments evidencing transfer of property between companies limited by shares, if 90% of the issued share capital of the transferee company was in the beneficial ownership of the transferor company or where transfer took place between a parent company holding 90% and a subsidiary company or where the transfer was between two 90% subsidiary companies.

(iii) Vide Notification dated 25th December, 1937, also issued in exercise of powers under Section 9(a) of the Stamp Act, remission was granted in respect of duty chargeable in the province of Delhi on instruments evidencing transfer of properties between companies limited by shares where, 90% of the issued share capital of the transferee company was in the beneficial ownership of the transferor company or where transfer took place between a parent company holding 90% and a subsidiary company or where the transfer was between two 90% subsidiary companies.

(iv) On 16th April, 1950 Union Territories (Laws) Act, 1950 came into force with the object to empower Central Government to extend to the Part-C States any enactment in force in any Part-A State or any other Part-C State; when the Constitution came into force, Delhi was a Part-C State.

(v) By Constitution 7th Amendment of 1st October, 1956, Part-C States were replaced by the Union Territories, thereby constituting the province of Delhi as a Union Territory.

(vi) In exercise of powers conferred by Section 2 of the Union Territories (Laws) Act, 1950, vide notification dated 30th September, 1958 the Stamp (Punjab Amendment) Act was extended to Delhi w.e.f. 1st October, 1958, repealing the previous stamp law in force in Delhi and substituting the same by the Stamp (Punjab Amendment) Act, 1958 as then in force in Punjab except Schedule-1A of the Punjab State inasmuch as separate Schedule-1A was created for the Union Territory of Delhi.

(vii) With the repeal of the previous stamp law applicable in the Union Territory of Delhi before 1st October, 1958, all notifications issued there under also stood repealed by implication; there was thus no occasion w.e.f. 1st October, 1958 to continue to extend remission of stamp duty to the instrument of transfer between the principal and subsidiary companies holding 90% or above stake in terms of Notification dated 25th December, 1937.

(viii) A single Judge of this Court, in Delhi Towers Limited Vs. GNCT of Delhi (2009) 165 DLT 418 held that in accordance with Article 372 of the Constitution of India, Notification dated 16th January, 1937 would be a l