Honble BALIA, J.–The appellant is the State of Rajasthan which challenges the order passed by the learned Single Judge on 1.4.98 in S.B. Civil Writ Petition No. 1480/97 filed by respondent No. 1 M/s. Bhilwara Spinners Limited (for short, `BSL) and respon- dent No. 2 Mr. D.L. Birla, President and Shareholder of BSL, by which he allowed the writ petition and set aside the order dated 13.03.1997 in case No. 65/97 raising a demand on account of deficiency in stamp duty and imposing penalty on the petitio- ner in relation to the instrument executed on behalf of the State of Rajasthan dt. 25.03.1988 and registered on 28.03.1988 by the Collector (Stamps), Bhilwara.

(2). The instrument, which is focus of attention in this appeal, reads as under:-

``SUPPLEMENTARY LEASE DEED

This Lease Deed is made on the 25th Day of March, 1988 BETWEEN MESSRS BHILWARA SPINNERS LIMITED, (hereinafter called the `Lessee), which expression shall unless excluded by or repugnant to the context, include his heirs, successors, executors, administrators and assigns of the FIRST PART and the Governor of State of Rajasthan hereinafter called the `Lessor), which expression shall unless excluded by or repugnant to the context includes his successors in office and permitted assigns of the SECOND PART.

Whereas the Lessor has granted the permission to transfer the lease hold rights in the land measuring 104 Bighas 08 Biswa (56 Acres approx.) in favour of the Lessee and the Lessee has agreed to accept the lease of a Plot of land as described in the Lease Deed dated 22.11.1968 which was executed by Erstwhile Messers Rajasthan Spinning and Weaving Mills Ltd., and which was registered at Sub Registrar Office Bhilwara on 25.11.1968.

Whereas in compliance of Notification No. P4/59/U/1/83 dt. 14.07.1983 the Lessee agrees to execute this Supplementary Lease Deed for the land 89 Bigha 03 Biswa (56 Acres Approx.)equivalent to 104 Bigha 08 Biswas situated in Industrial Area, Bhilwara and more parti- cularly described in the Schedule hereto (hereinafter called the Plot) upon the terms and conditions vide Notification dated 14.07.1983.

NOW THIS INDENTURE WITNESSES AS FOLLOWS:

1. That the Lessor agrees to let the said Plot and the Lessee agrees to accept the said Plot on lease for a balance period of SEVENTY TWO YEARS on rent. The Lessee shall have an option to renew the said lease for a further period of Ninety- nine years after expiry of the present terms of lease.

2. That the lessee shall be responsible for all the dues payable to the Lessor and to the other institutions.

3. That the Lessee agrees to abide by the directions issued from time to time by the State of Rajasthan.

4. That the lessee agrees to not to transfer the part of this Plot without the permission of the State Government.

5. That the Lessee shall utilise the said Plot of land for the Industrial use.

6. That the Lessee shall pay the stipulated rent of Rs. 1680/- (Rupees One Thousand Six Hundred Eighty Only) per year of the said plot to the Lessor.

IN WITNESS thereof the parties hereto have set respective hands on the dates mentioned against their signatures:

Witness

1. Sd/-

//seal//

sd/-

//seal//

Witness

Sd/-

//seal//

Signed for and on behalf

of the Governor,

State of Rajasthan

Sd/-

//seal//

Signed by the said Lessee

(3). THE CONTROVERSY - Revenue contends it to be an instrument of conveyance of properties comprised in Bhilwara unit owned by Rajasthan Spinning & Weaving Mill Ltd. (RSWM) which includes plant, machinery, buildings and fixtures alongwith lease hold rights in land on which factory is situated to respondent Bhilwara Spinners Ltd. hence Stamp Duty is payable as a conveyance and valorem on entire value of the property comprising all the aforesaid assets and not as a document of lease as it reads.

(4). The controversy had arisen in the facts and circumstances to the narrated briefly hereinafter and detailed in the order under appeal. The instrument in question described as supplementary lease in respect of 56 acres of land executed b

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