JUDGMENT :

D. Bharatha Chakaravarthy, J.

Prayer: Civil Miscellaneous Appeal has been filed under Section 47-A (10) of the Indian Stamp Act, 1898 against the order of the Inspector General of Registration, Tamilnadu Principal Revenue Controller, Chennai for Document No.987 of 2002 made in No.403679/N2/2003, dated 27.04.2005.

The Appeal :

1. This is an appeal filed under Section 47-A(10) of the Indian Stamps Act, 1898 by the appellants against the order of the first respondent, namely the Inspector General of Registration, Tamilnadu - Principal Revenue Controller, Chennai, dated 27.04.2005, bearing reference No.40369/No.2/2003, in respect of document No.987/02, whereby, the first respondent had partly dismissed the appeal filed by the appellants against the order of the District Revenue Officer (Stamps), Coimbatore, dated 26.03.2003, bearing reference No.5975/Co/02, thereby, imposing an additional stamp duty of Rs.9,15,83,421/- to be paid along with further interest at the rate of 2% per month from the date of order till date of payment.

Brief Facts Leading to the Appeal :

2. On 26.03.2002, the first appellant (originally known as M/s.B.P.L Mobile Cellular Limited, thereafter having merged, and presently Vodafone Idea Limited), which was the owner of the property, being the land admeasuring 19870 Sq.ft, situate in T.S.No.598, Anuparpalayam village, ward No.5, New No.7, Coimbatore town, Coimbatore Taluk, Coimbatore together with the buildings and structures standing thereon, sold to and in favour of the second appellant (originally R.A.G Constructions and Real Estates Private Limited and since merged and now known as M/s.Hindusthan Infrastructure Projects and Engineering Private Limited) for a sale consideration of Rs.3,50,00,000/- (Rupees Three crores fifty lakhs only).

3. The said sale deed was presented for registration before the Joint Sub- Registrar – I, Coimbatore. After the said document was presented for registration, the Joint Sub-Registrar – I, Coimbatore, after considering the sale deed, issued a notice on 31.07.2002, bearing reference No.12099/U2/2002, in respect of the said document No.987/2002, thereby, finding that in respect of the extent of land sold, there is an under valuation and sum of Rs.31,86,651/- is payable as additional stamp duty in respect thereof; and as per the value determined by the Assistant Executive Engineer, in respect of the buildings and structures, there is an under valuation of the superstructures and an additional sum of Rs.50,76,077/- has to be paid as additional stamp duty, thus totaling to Rs.82,62,728/-; This apart, the document transfers an ongoing concern on 'as is where is basis' along with the plant and machinery and therefore, the plant and machinery should also be valued and since the plant and machinery are of the value of Rs.65,21,52,883/-, as per the judgment of the Hon'ble Supreme Court in Civil Appeal No.5929 of 1997 dated 03.012.1999 and the consequent circular issued by the first respondent in Order No.51389/C5/2001, dated 02.11.2001, additional stamp duty has to be paid on the said plant and machinery also and therefore, determined a sum of Rs.9,13,01,407/- as additional stamp duty. Therefore, the Sub-Registrar, by the said notice, demanded a total additional stamp duty of Rs.10,17,00,998/-. Since the payment was not made, and the Registering Authority had reasons to believe that the sale deed is undervalued, the matter was referred to the appropriate authority, namely, the District Revenue Officer(Stamps), Coimbatore, the second respondent herein, for an inquiry as per Section 47-A (1) of the Stamp Act, 1899.

4. On 25.03.2003, the second respondent herein issued a show cause notice to the appellants herein enclosing an inspection report, thereby, claiming additional stamp duty and registration charges on the ground that, (i) the land cost is undervalued and the land extent is incorrectly calculated; (ii) the building is undervalued; (iii) and the plant and machinery is not inclu