Stamp duty on a Sale Deed must be based on the market value at the time of registration, not the consideration mentioned in the document.

JUDGMENT

S.S. SUNDAR, J.

(1) This appeal is directed against the order of the learned Single Judge dated 15.04.2024 in WP.No.9123/2024 allowing the writ petition filed by the respondents to quash the proceedings of the 3^rd appellant, who had refused to register the Sale Deed dated 09.11.2023 and to direct the 3^rd appellant to register the Deed of Conveyance pursuant to the decree obtained for specific performance by the Civil Courts.

(2) Brief facts that are necessary for the disposal of this appeal are as follows:-

(3) Pursuant to a decree in the suit in OS.No.6686/1996 for specific performance and the Sale Deed executed by the Court in execution of decree, the writ petitioners presented the document for registration. However, the same was refused on the ground that the stamp duty has not been paid on the basis of market value for the property as on the date when the document was presented for registration. However, the learned Judge allowed the writ petition after referring the judgment of this Court made in CMA.Nos.168 and 169 of 2016 dated 22.08.2017 in G.Mary Chellathal and Another Vs. Tamil Nadu Inspector General of Registration & Principal Revenue Authority and others. As against the same, the appeal is preferred by the appellants.

(4)Relying upon a Two Member Bench Judgment of the Hon'ble Supreme Court in the case of State of Rajasthan and Others Vs. Khandaka Jain Jewellers [2007 [14] SCC 339 : AIR 2008 SC 509] and another judgment in the case of Residents' Welfare Association, Noida Vs. State of U.P. and Others [2009 [14] SCC 716 : AIR OnLine 2019 All 1713], the learned Judge observed that conflicting views have been expressed by the Hon'ble Supreme Court in those two judgments. Posing himself a question, which of the two judgments of Hon'ble Supreme Court should be followed, the learned Single Judge, taking guidance from another judgment of himself, held that the judgment in Residents' Welfare Association, Noida's case [cited supra] should be preferred as the law was more elaborately and accurably discussed by the Hon'ble Supreme Court in the latter judgment. Therefore, the writ petition was allowed by holding that the stamp duty should be paid based on the contract entered into between parties. While allowing the writ petition, the learned Judge directed the Sub Registrar to register the document. Aggrieved by the same, the official respondents have preferred the above writ appeal on various grounds.

(5)This Court heard the submissions of Mr.B.Vijay, learned Additional Government Pleader appearing for the appellants and Mr.M.K.Kabir, learned Senior counsel appearing for the respondents and also perused the records.

(6)Mr.B.Vijay, learned Additional Government Pleader appearing for the appellants, relied upon a few judgments of Hon'ble Supreme Court and this Court, taking a consistent view that stamp duty payable on the Deed of Conveyance should be on the basis of the market value when the document was executed and presented for registration. In the case of Khandaka Jain Jewellers' case [cited supra], the Hon'ble Supreme Court has held that the date of presentation of document of sale alone should be taken into account while fixing the market value. The Hon'ble Supreme Court also held that the Stamp Act, being the fiscal state of statute, should be interpreted in favour of revenue. The same principle was reiterated by Hon'ble Supreme Court even in the case of State of Punjab and Others Vs. Mohabir Singh and Others [1996 [1] SCC 609].

(7)Referring to Section 47-A of the Stamp Act and other relevant provisions, the Hon'ble Supreme Court has held as follows:-

''4. Sub-section (1) of Section 47-A empowers the Registering Officer, while registering any instrument relating to the transfer of any property, if he has reasons to believe that the value of the property or consideration, as the case may be, has not been truly set forth in the instrument, after registering such instrument, to refer the same to the Collector for determinat