( 1 ) THE Chief Controlling Revenue authority, Gujarat State has referred the following two questions under Section 56 of the Bombay Stamp Act, 1958 (the Act) :

" (1) Whether the said instrument Titled as Deed of Simple Mortgage executed on dt. 7. 12. 1985 and presented for registration with Sub-Registrar, Manavdar on dt. 7. 12. 85 bearing Serial No. 317 is liable to stamp duty under Article 36 of schedule-I to the Bombay Stamp Act, 1958, read with Govt. Notification dt. 2. 7. 1970. (ANNEXURE - e )OR (2) Whether the said instrument fulls within the scope full remission granted inter cilia to the instruments of Mortgage under Govt. R. D. Notification No. GHM-79/108/- M-STP-1479/2288-H dt. 23. 3. 1979 (Annexure- b )".

( 2 ) THE applicant, an individual, had applied to Bank of India, Dungarpur branch, Taluka District Junagadh for a loan of Rs. 9,80,000/- for the purchase of Air compressors, Drilling Rods and other accessories under Agricultural Finance scheme. Upon being granted the said financial facility, the parties had entered into an agreement through an instrument termed as "simple Mortgage Deed". The said instrument was presented for registration with Sub-Registrar, Manavdar on 7. 12. 1985 bearing Sr. No. 317. Admittedly, no stamp duty has been paid on the instrument.

( 3 ) DURING inspection by the Accountant general, Ahmedabad of the Sub-Registrar s office, Manavdar an audit issue was raised that the instrument in question is not entitled to get the benefit of exemption under Government Order No. G. O. R. D. No. GHM779-108-M-STP-1479/2288-H dated 23. 3. 1979. The Sub-Registrar, Manavdar therefore sent the instrument to the Deputy collector, Stamp Duty Valuation organisation, Junagadh for taking necessary action in the matter. The Deputy collector, Stamp Duty Valuation organisation, Junagadh acting under the provisions of Section 39 of the Act, after hearing the applicant. directed the applicant to pay deficit stamp duty to the tune of Rs. 98,000/- together with the penalty quantified at Rs. 1,96,000/- in exercise of powers under Section 39 (i) (b) of the Act.

( 4 ) THE applicant challenged the said order dated 15. 9. 1989 by way of Revision application under Section 53 (i) of the Act before Chief Controlling Revenue authority, Ahmedabad (the respondent authority ). The respondent Authority after hearing the applicant partially allowed the revision Application and modified the order of the Deputy Collector. Stamp Duty valuation Organisation, Junagadh, directing the applicant to pay deficit stamp duty of rs. 49,000/- together with penalty of rs. 49,000/- i. e. toalling to Rs. 98,000/ -. The applicant has challenged the said order by way of the present reference. It is the case of the applicant that the case of the applicant is governed by Notification dated 23. 3. 1979 and the applicant is entitled to benefit of total exemption from payment of stamp duty. As against that, according to respondent authority notification dated 23. 3. 1979 is only in respect of instruments relating to loans and advances, loans and mortgages, cash credit of over draft, bonds, agreements of pawn or pledge and letters of hypothecation executed by the farmers for agricultural and land development purposes in favour of all commercial banks including the State bank of India etc. But the instrument executed by the applicant is towards loan obtained for purchase of Air Compressors, drilling Rods and other Accessories and hence the instrument cannot be governed for the purpose of agricultural and land development.

( 5 ) HEARD the learned Advocate appearing on behalf of the applicant and the government Pleader appearing on behalf of the respondent authority. Both of them have reiterated the respective contentions recorded in the statement of case.

( 6 ) THE principal dispute thus is as to whether the instrument in question falls within the scope and meaning of the instrument which is entitled to full remission under Government Notificatio