The legal principle established is the requirement for tax statutes to be precise and unambiguous, and the need to avoid overzealous extraction of stamp duty and penalty by authorities.

S. U. Khan, J.—In some stamp matters learned counsel for the petitioners stated that different officers were given different targets by their higher authorities for realization of stamp duty and penalty. However, the Court could not find any good evidence in support of the said assertion. But, on the basis of experience gained while sitting for the last six months in this jurisdiction I can safely say that in some of the cases which came before me different authorities and officers went out of their way to extract as much amount as possible by way of stamp deficiency and penalty. Provisions of Section 47A of the Stamp Act shall not be overstretched lest they break. During last three or four years there has been enormous rise in stamp deficiency cases. It appears that almost every second or third deed is being impounded. This may result in killing the goose, which is laying golden eggs. If this practice is continued for a longer period execution and all registration of all sorts of deeds in Uttar Pradesh may become obsolete. Government should not underestimate the ingenuity of the public. It is quite possible that immovable property may change hands even without any deed either registered or un-registered. This will not only deprive the State Government of the valuable revenue which it is earning through stamp duty but will also give rise to enormous disputes and litigation in respect of immovable properties.

2. Sub-Registrars primary duty is to register the deeds. They are now being directed to at least spare one day per week from their regular duties and inspect the properties in respect of which they have registered the deeds and ascertain whether proper valuation of the property was given in the deed or not.

3. In several cases the Court has found that if any person who is having some grudge against the vendee files a complaint in respect of improper payment of stamp duty on a particular sale deed, authority hearing the case places the entire burden upon the vendee and if he fails to discharge the burden the allegation of valuation made by the complainant is taken to be correct.

4. In most of the cases Tehsildar or some other authority files report on the basis of ex parte inspection and the authority hearing stamp cases decides the case only on the basis of that ex parte report.

5. The instant case also discloses an alarming state of affairs. Under the agreement in question possession was delivered and sale consideration was mentioned as Rs.1,50,000. Stamp duty was paid on the said amount and agreement was registered. Later on it was impounded. By order dated 16.12.2004 I directed the Sub-Registrar to be present in order to explain as to why in the first instance agreement was registered even though market value of the property set forth in the agreement was less than the value fixed under U. P. Stamp (Valuation of Property) Rules, 1997. The then Sub Registrar of the registration office concerned namely Shri O. P. Katheria is present. Sub-Registrar states that at the relevant time when the deed was registered by him he was under confusion regarding payment of stamp duty on agreement with possession. Schedule 1B to the Stamp Act has been amended by U. P. Act No. 22 of 1998 (Indian Stamp (U. P. Amendment) Act, 1997). It has been provided thereby under Article 5 (b1) of Schedule 1B that on agreement for sale without possession same stamp duty shall be paid as on conveyance (No.23 clause (a)) on one half of the amount of consideration as set forth in the agreement. Clause 13 of statement of objects and reasons of the said Amendment Act provides that stamp duty on agreement must be paid on one half of the amount of consideration set forth in the agreement where possession is not delivered and on full amount of consideration set forth in the agreement where possession is delivered. Article 5 as amended by the aforesaid Amendment Act deals with agreements without possession. Agreements with possession have not been separa