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R. SUBRAMANIAN, R. SAKTHIVEL
Vijayalakshmi Marketing – Appellant
Versus
State of Tamil Nadu – Respondent
JUDGMENT :
(Judgment of the Court was made by R.SUBRAMANIAN, J.)
Prayer : Writ Appeal filed under Clause 15 of the Letters Patent, to set aside the order dated 13.09.2023 passed in the writ petition in W.P.No.7194 of 2023.
The petitioner in W.P.No.7194 of 2023 is on appeal aggrieved by the dismissal of its writ petition with the following prayer:-
The court ruled that stamp duty on a sale certificate is 5%, and Section 47-A does not apply to public auctions conducted under court supervision.
Sale certificates issued by operation of law under SARFAESI do not fall under Section 47-A of the Indian Stamp Act for undervaluation, distinguishing them from conveyance instruments.
The sale certificate from a public auction does not require registration under the Registration Act, and the value for stamp duty is based on the purchase price stated, not an assessed market value.
(1) Deposit of stamp duty for sale certificate – Sale certificate issued to purchaser in pursuance of confirmation of an auction sale is merely evidence of such title and does not require registratio....
The main legal point established in the judgment is that the petitioner was not liable to pay deficit stamp duty and registration fees, and the impounding of the registered sale certificate was quash....
Stamp duty for Sale Certificates must be calculated based on the purchase price stated in the certificate, not the market value, with total permissible duties capped at specified rates.
The court confirms the rights of auction purchasers regarding stamp duty for registration under the Registration Act, allowing options pending further full bench clarification.
The court mandated that sale certificates must be duly entered as per Section 89(4) of the Registration Act, allowing for flexibility regarding stamp duty.
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