The valuation of property for stamp duty purposes can be determined by the Collector, and the rules cannot override a statutory provision.

( 1 ) THIS writ petition has been filed for quashing Rule 5 (c) (ii) of the U. P. Stamp (Valuation of property) Rules, 1997, framed by the State of U. P. and for a mandamus directing the State government not to determine the minimum value of commercial buildings on the basis of the aforesaid rule.

( 2 ) HEARD learned counsel for the parties.

( 3 ) THE petitioner is a society registered under the Societies Registration Act and has twenty members engaged in development, construction and sale of real estate at Agra including commercial property.

( 4 ) COPY of U. P. Stamp (Valuation of Property) Rules, 1997, has been annexed as Annexure-2 to the writ petition. The impugned Rule 5 (c) (ii) states :

"5. Calculation of minimum value of land, grove, garden and building.--For the purposes of payment of stamp duty, the minimum value of immovable property forming the subject of an instrument shall be deemed to be such as may be arrived at as follows : (c) In case of buildings : (ii) Commercial building.--Minimum value of land whether covered by the construction or not which is subject-matter of the Instrument, as worked out under Clause (a) plus three hundred times the minimum monthly rent of the building arrived at by multiplying the constructed area of each of the building with the minimum rent fixed by the Collector of the district under Rule 4. "

( 5 ) BEFORE deciding the validity of the aforesaid rule, we may refer to Section 47a of the Stamp act as Introduced in U. P. by U. P. Act 11 of 1969. Section 47a states :

"47a. Undervaluation of the instrument.-- (1) If the market value of any property which is the subject of any instrument, on which duty is chargeable on market value of such property, as set forth in such instrument, is less than even the minimum value determined in accordance with the rules made under this Act, the registering officer appointed under the Registration Act, 1908 shall, before registering the instrument, refer the same to the Collector for determination of the market value of such property and the proper duty payable thereon. (2) On receipt of a reference under Sub-section (1) the Collector shall, after giving the parties a reasonable opportunity of being heard and after holding an inquiry in such manner as may be prescribed by rules made under this Act, determine the market value of the property which is the subject of such Instrument and the proper duty payable thereon. (3) The Collector may, suo motu, or on a reference from any Court or from the Commissioner of stamps or an Additional Commissioner of Stamps or a Deputy Commissioner of Stamps or an assistant Commissioner of Stamps or any officer authorized by the State Government in that behalf, within four years from the date ofregistration of any instrument on which duty is chargeable on the market value of the property, not already referred to him under Sub-section (1), call for and examine the instrument for the purpose of satisfying himself as to the correctness of the market value of the property which is the subject of such instrument, and the duty payable thereon, and if after such examination he has reason to believe that the market value of such property has not been truly set forth in such instrument, he may determine the market value of such property and the duty payable thereon : provided that, with the prior permission of the State Government, an action under this sub-section may be taken after a period of four years but before a period of eight years from the date of registration of the instrument on which duty is chargeable on the market value of the property. (4) If on enquiry under subsection (2) and examination under Sub-section (3) the Collector finds the market value of the property ; (i) truly set forth and the instrument duly stamped, he shall certify by endorsement that it is duly stamped and return it to the person who made the reference ; (ii) not truly set forth and the instrument not duly stamped, he shall require the