The determination of stamp duty based on market value and Collector rate, and the impact of amendments and notifications on stamp duty calculation.

Kanwaljit Singh Ahluwalia, J.

1. Petitioner-company purchased 20 marlas (1 kanal) plot bearing No. 394 situated in Scheme No. 10, Town Improvement Trust, Urban Estate, Premgarh, from the Improvement Trust, Hoshiarpur. The consideration paid by the petitioner-company was Rs. 37,500/-. Taking this as a base value, sale deed was registered and petitioner had paid stamp duty. Thereafter, a reference was made by the Sub Registrar that Audit Team has raised an objection that sale deed was not registered in consonance with circle rate and the same was undervalued, as there was deficiency in the payment of stamp fee. In the reference made, Sub Registrar stated that at the time of registration, Collector has drawn a Schedule and fixed the rate and the stamp duty paid was not according to the prevailing Collector rate. Petitioner has made a grievance before the Collector and the Appellate Authority that he had affixed the stamp duty and reflected the consideration as per the allotment price and, therefore, the Collector rate cannot be taken into consideration. A Division Bench of this Court, to which I was party, in Sukhjit Singh Cheema v. Punjab Urban Planning and Development Authority, Chandigarh, 2009(1) RCR(Civil) 337 held as under :-

"Though the sale consideration mentioned in the letter of allotment or such like document cannot be disputed but what would be proper stamp duty is required to be determined in terms of Section 47-A of the Act which contemplates that it is the market value of the property on the date of registration of the instrument. Therefore, irrespective of sale consideration in the letter of allotment, stamp duty would be payable on the market value of the property determined in terms of Rule 3-A of 1983 Rules prevalent at the time of registration of instrument".

2. Mr. Handa appearing for the petitioner has further stated that the reference was to be made by the Sub Registrar at the time of registration and later reference is not to be made on the basis of audit objection. This matter was also dealt with by a Division Bench of this Court in Sukhjit Singh Cheemas case (supra) and held as under :-

"As per amended section 47-A(1) of the Act, the Registering Officer can make reference to the Collector for determination of the market value if market value is less than the minimum value as determined in accordance with the Rules made under the Act. In exercise of such powers, the State Government have introduced Rule 3-A in 1983 Rules under which the Collector has to determine the collector rate in consultation with the Committee of experts in respect of the market value of the land/properties, located in his district, locality wise and category wise.

We have heard counsel for the parties at length. The judgments referred to by the learned counsel for the petitioners are the cases which arise before the insertion of Section 47-A(1) of the Act and Rule 3-A of 1983 Rules. In Chamkaur Singhs case (supra), this Court has held that the guidelines could neither be issued under section 47-A of the Act nor these are in consonance with the same, rather these just run counter to the language and intendment of the said provisions. It was held to the following effect:-

".....We are, therefore, clearly of the opinion that these so called guidelines could neither be issued under section 47-A of the Stamp Act nor are these in consonance with the same, rather these just run counter to the language and intendment of the said provisions. We are further of the opinion that no guidelines can possibly be issued or laid down for controlling the quasi-judicial decision of a particular functionary or authority under a particular statute".

3 Lastly, Mr. Handa has submitted that on 28.5.2009, the Government of Punjab had issued a notification wherein it was stated that those properties which have been allotted by the Government Organizations, stamp duty is payable on the price at which allotment was made or the property was sold. This m