The court established that subsequent government circulars can influence the interpretation and application of stamp duty provisions, necessitating a review of prior orders.

JUDGMENT

1. The instant petitions have been filed challenging the order dated 8th June, 2020 passed under Section 37 of the Rajasthan Stamp Act, 1998 (for short "the Act of 1998").

2. Learned counsel for the petitioners submitted that during pendency of the writ petitions, circular dated 28th December, 2020 has been issued by the Finance (Tax Department), Government of Rajasthan, whereby clarification has been issued in respect of charging stamp duty on different documents.

3. Learned counsel for the petitioners submitted that for the document, mentioned in Article 37(b) relating to mortgage of movable/immovable property without possession, the Government has clarified that stamp duty will be payable as per the notifications, issued from time to time.

4. Learned counsel for the petitioners submitted that the impugned order has been passed by the respondents asking the petitioners to pay stamp duty on Common Loan Agreement and Inter-creditor Agreement by charging stamp duty @ 5%.

5. Learned counsel submitted that in view of the subsequent developments, the Authority is required to look into the circular, issued by the State Government and accordingly, an opportunity is required to be afforded to the petitioners to satisfy the Authority that the impugned order, which has been passed, needs to be reconsidered.

6. Learned counsel further submitted that the demand, which is raised in the impugned order, is also exorbitant and the order has been passed in an arbitrary manner without considering the relevant provisions, which were applicable to the documents, which are said to be having requirement of paying stamp duty in the State of Rajasthan.

7. This Court finds that the circular dated 28th December, 2020 specifically provides that the demand, which has already been raised in respect of Simple Loan Agreement, Mortgage by deposit of title deed (Equitable Mortgage) and Simple Mortgage without possession, can be reconsidered and such issues can be re-examined.

8. Learned counsel for the respondents - Mr. Hemant Kothari, appearing on behalf of Major RP Singh, AAG, submitted that he has instructions to state before this Court that if the petitioners approach the Competent Authority again to reconsider their cases about applicability of the Act of 1998 and requirement of paying any stamp duty, the parties may be given liberty to place the relevant circulars, etc. before the Authority and the Authority is fully competent to consider the circulars, which have been issued from time to time.

9. Learned counsel for the respondents also submitted that the order, which is impugned in the writ petitions, was passed by the Authority while considering the relevant provision, however, he submits that in case, the matter is remanded back, the Authority concerned will look into the entire matter and after affording an opportunity of hearing to both the sides, appropriate order will be passed.

10. This Court finds that the circular dated 28th December, 2020 is required to be considered and the Collector (Stamps), Jaipur Circle-I is required to look into the matter again after keeping in mind the circular, issued by the State Government. The Authority will also be free to decide the applicability of requirement of paying stamp duty, as per law.

11. Accordingly, the order dated 8th June, 2020 as well as consequential orders are set aside. The matter is remanded back to the Collector (Stamps), Jaipur Circle-I. The Collector (Stamps), Jaipur Circle-I will afford opportunity to both the sides and after considering the relevant documents and hearing of the parties, fresh order may be passed in accordance with law.

12. With the aforesaid, the present writ petitions are disposed of.

13. A copy of this order be separately placed in the connected file.