C.N. Ramachandran Nair, J.

1. Petitioner, a registered Cooperative Society under the control of the Government purchased immovable property from another Cooperative Society by name Palakkad Wholesale Cooperative Consumer Stores Ltd., which was under liquidation. The purchase was in public auction conducted by the Liquidator which was confirmed by High Court by it's orders dated 20/01/1998. Since Ext. P1 Government Order grants exemption from stamp duty, for documents including inter Cooperative Societies sale deeds, sale deed in white paper was presented for registration. The Sub Registrar, however, expressed doubt about the eligibility for exemption from stamp duty under the Kerala Stamp Act, 1959 based on the above notification, and therefore he impounded the document and forwarded the same to the District Registrar, Palakkad under S.33(1) of the Stamp Act for adjudication. Since the District Registrar acting in exercise of power under Ss.31 and 39 of the Stamp Act himself felt doubt about the chargeability of the instrument, he referred the matter for opinion of the Government under S.54(2) of the Act. Pursuant to reference the Government heard the petitioner and held that instrument is not entitled to exemption from stamp duty under Ext. P1 notification claimed by the petitioner, and consequently stamp duty was ordered to be recovered vide Ext. P3 proceedings against which this WPC is filed.

2. I have heard senior counsel Sri. Pathros Mathai appearing for the petitioner and Government Pleader appearing for the respondents. The relevant clause in the notification MS No. 795/60/Agri. dated 08/10/1960, produced as Ext. P1 in the OP, which was published in the Gazette dated 18/10/1960, is extracted hereunder for easy reference:

1. The stamp duty registration fees and fees for encumbrance certificate payable under the Stamp Act and the Registration Act in force in the state shall be remitted to the Cooperative Societies in the following cases to the extent indicated in each case.

(a). The whole stamp duty with which under the Kerala Stamp Act, 1959 (Act 17 of 1959) instruments executed by or on behalf of any registered Cooperative Society or instruments executed by any officer or member of such society and relating to the business thereof and decisions, awards, or orders of the Registrar of the Arbitrators under the said Cooperative Societies Act, provided that in the case of sale deeds, the Vendors have been continuously the members of such society for a period of two years immediately prior to execution of the instrument.

In exercise of delegated powers under S.54(2) of the Stamp Act, the Land Revenue Commissioner vide Ext. P3 held that petitioner is not entitled to exemption from stamp duty under the above Government order for the reason that sale is not for the purpose of business of the society. Government Pleader during hearing also highlighted this argument and contended that exemption is available only when transfer of property is for the purpose of business of the society and not when Cooperative Society sells property in liquidation proceedings. Senior counsel appearing for the petitioner on the other hand contended that any deed executed on behalf of the registered Cooperative Society is entitled to full exemption from stamp duty and registration charges as provided in the notification. According to him, the qualification of the deed as one for the purpose of business applies only in respect of instruments executed by any officer or member of such society.

3. On going through the above notification and after hearing both sides. I am unable to agree with the reasoning in Ext. P3 for denying exemption from stamp duty for more than one reason. In the first place eligibility for exemption under Ext. P1 GO has to be considered with reference to the person who is liable for stamp duty under the Act. S.30(b) of the Stamp Act provides that stamp duty is payable in the case of conveyance by the grantee. Therefore petitioner