Hon’ble Pankaj Mithal, J.—The writ petition involves interpretation of the period of lease stipulated under the lease agreement executed between M/s Naman Buildcon Limited and the petitioner for leasing out super ground floor of commercial building, Bansal Chamber situate over plot No. 45, Kaushambi, district Ghaziabad and the manner of levy of stamp duty on it.

2. The agreement provides that the initial period of lease shall be minimum 3 years and shall commence from 1st June, 2005 with an option to the lessee for extension of two consequential terms of 3 years each and that in the event of extension of the lease the rent shall be enhanced by 15% for every term of 3 years.

3. The aforesaid agreement is on a stamp paper of Rs. 100/- only.

4. In respect of the aforesaid lease agreement, on the report of the Sub-Registrar, Ghaziabad dated 5.11.2007 proceedings under Section 33 of the U.P. Stamp Act were initiated. The Additional Collector holding the aforesaid lease to be a lease for a period over 5 years subjected it to stamp duty under Article 35 (a) (iii) of Schedule 1-B to the Indian Stamp Act, 1899 (hereinafter referred to as an Act). The aforesaid order has been affirmed in appeal by the Commissioner vide order dated 18.11.2010.

5. The aforesaid two orders have been assailed by the petitioner by filing the present writ petition.

6. I have heard Sri R.B.Singhal, learned counsel for the petitioner and Sri Nimai Das, learned Standing Counsel for respondents.

7. Pleadings exchanged between the parties have also been perused.

8. One of the submission of Sri Singhal is that the lease is only for a period of three years with an option to get it extended for further period. Therefore, basically it is a lease for 3 years only and is chargeable to stamp duty under Article 35(a)(ii) of Schedule 1-B to the Act and not under Article 35(a)(iii) of Schedule 1-B to the Act.

9. Indian Stamp Act, 1899 is a statute of a fiscal nature. It has been enacted to secure revenue for the State by collecting proper stamp duty on certain classes of instruments as specified. Section 3 of the Act is the charging section and provides that the instruments specified in Schedule of the Act with certain exceptions are chargeable to stamp duty of the amount indicated in the Schedule of the Act itself.

10. Schedule 1-B of the Act is a Schedule which is applicable to the State of Uttar Pradesh. It contains the instruments chargeable to stamp duty under the Act and the manner of charging stamp duty on them in its application to the State of U.P. Article 35 of the Schedule 1-B of the Act provides for stamp duty on ‘ Lease’ including an under-lease or sub lease and any agreement to let or sub-let. Thus, an instrument of lease, under lease, sub-lease or any agreement to let or sublet are chargeable to stamp duty as per the rate indicated therein. The aforesaid Article provides for different rates for charging stamp duty on leases, under leases, sub-leases or agreements to let or sublet depending upon the term/period with premium or with no premium.

11. It is beneficial to reproduce Article 35 of Schedule 1-B of the Act herein below:

“LEASE, including an under-lease or sub-lease and any agreement to let or sublet—

(a) Where by such lease the rent is fixed and no premium is paid or delivered.

(b) ......................................................

(c) ......................................................

Exemptions.....................................”

12. A lease without premium for a period exceeding one year but not exceeding 5 years is chargeable to stamp duty on a consideration equal to three times the amount or value of the average rent reserved; whereas a lease without premium for a period exceeding 5 years but not exceeding 10 years is chargeable to stamp duty for a consideration equal to 4 times the amount or value of the average annual rent reserved.

13. Thus, the chargeability of stamp duty upon a lease deed and agreement to let or sublet is dep