Stamp duty--Registration of sale deed--Stamp duty is payable as per market value of property at the time of registration and not as per value mentioned in sale deed.

Hemant Gupta, J.

1. This order shall dispose of Civil Writ Petition No. 1 1530 of 2005, 19922 of 2006, 18722 of 2007 and 4084 of 2008, wherein identical questions of law have been raised out of similar facts. In all these cases, the petitioners are the allottees or the purchasers from the State Government or one or other instrumentalities of the State of a piece of plot. Though the allotments were made some time past, but when the petitioners sought registration of the conveyance deed/title deed, the Sub Registrar has sought stamp duty on the basis of market value of the land at the time of registration of the documents. It is the case of the petitioners that such Stamp Duty on market value has been claimed on the basis of a circular issued by the Department of Revenue and Rehabilitation (Stamp and Registration Branch), Chandigarh, which is to the following effect:

Copy of letter No. 24/96/2001-ST-2/4593, dated 22.10.2002 from Department of Revenue and Rehabilitation (Stamp and Registration Branch) Chandigarh to the Deputy Commissioner (Collector) etc. Subject:Levy of Stamp Duty on instrument(s) of transfer/conveyance deed executed by the Punjab Urban Development Authority in favour of the allottees. I am directed to refer to the subject noted above and to say that Section 47-A(1) of the Indian Stamp Act, 1899 , as amended vide notification No. 24 Leg./2001, dated 21.12.2001, inter alia, lays down that if the market value of any property which is the subject of any instrument on which duty is chargeable on market value as set forth in such instrument is less than even the minimum value as determined in accordance with the rules made under this Act, the Registering Officer appointed under the Registration Act, 1908 shall after registering the instrument refer the same ,to Collector for determination of the market value of such property and the property duty payable thereon.

2. The Registering Officer have generally been complying with the provisions aforesaid while levying stamp duty on the instruments relating to the transactions of immovable property presented for registration by the public at large. However, it has come to the notice of the State Government that the same criteria is not being followed while registering the instruments executed by the Punjab Urban Development Authority in favour of the allottees. In such cases the price fixed by the PUDA at the time of original allotment of the property in question is being taken into consideration for the purpose of leving of stamp duty. This practice evidently is not in conformity with the aforesaid provisions of Section 47-A of the Act ibid. Moreover, the price of the land/property as fixed by the PUDA at the time of the original allotment does not necessarily represent the actual market value prevailing at the time of registration of the conveyance deed. The action of Registering Officers to levy stamp duty on the basis of price fixed by the PUDA many years back at the time of original allotment also results into avoidable revenue loss to the State Exchequer.

3. It is, therefore, directed that the practice being followed by the Registering Officer to levy stamp duty on the basis of price of land/property fixed by the Punjab Urban Development Authority at the time of original allotment be discontinued where it does not match the market value at the time of registration of the relevant instruments and compliance of the above said statutory provision be ensured in letter and spirit strict action may be taken against the officers found to be not complying with the above said provisions.

4. The receipt of this letter may also be acknowledged.

2. Since the questions raised are identical, for the facility of reference, the facts are taken from C.W.P. No. 11530 of 2005. In the aforesaid case, House No. 984, Sector 3, Ajnala Road, Amritsar was allotted to the petitioner by the Punjab Housing Development Board, Chandigarh, on 4.10.1988 at price of Rs. 2,20,590/-. The petiti