Stamp duty on agreements for agricultural land is governed by specific provisions of the Indian Stamp Act, limiting liability to Rs.200 in absence of structures.

ORDER :

1. This Writ Petition is filed questioning the impugned Notice No.02/514/2025, dated 12.03.2025 issued by the respondent No.3, whereby the petitioner was directed to pay the stamp duty of Rs.60,500/- @ 0.5% of the consideration value of Rs.1,21,00,000/- along with penalty of Rs.1,000/-, totalling to Rs.61,500/- for impounding the Agreement of Sale dated 20.09.2021 and sought a direction to the respondent No.3 to collect the stamp duty as per the provisions of Article 6-A of Schedule-I of the Indian Stamp Act, 1899.

2. Heard Sri Kishore Rai, learned Senior Counsel for the petitioner and Mrs.S.Sravanthi, learned Assistant Government Pleader for Stamps and Registration appearing for the respondents and perused the record.

3. The learned Senior Counsel for the petitioner would submit that the petitioner had entered into an Agreement of Sale dated 20.09.2021 to purchase agricultural land admeasuring to an extent of Ac.02.08 guntas, in Sy.No.130/A/4, situated at Reginthal Village of Sadshivpet Mandal, Sanga Reddy District (hereinafter referred to as subject property’) from one B.Bhaskar Reddy and when the vendor of the petitioner refused to execute the sale deed, the petitioner filed a suit against his Vendor and another vide O.S.No.111 of 2023 on the file of II Additional District Judge, Sanga Reddy for specific performance. In the said suit, the petitioner intended to mark the said Agreement of Sale which was engrossed on a stamp paper of Rs.20/- and the II- Additional District Judge sent the said document to the Respondent No.3 for impounding the document. Thereafter the respondent No.3 issued impugned Notice No.G2/514/2025, dated 12.03.2025 directing the petitioner to pay the stamp duty of Rs.60,500/- @ 0.5% of the consideration value of Rs.1,21,00,000/- along with penalty of Rs.1,000/-, totalling to Rs.61,500/- for impounding the Agreement of Sale dated 20.09.2021 and further intimated either to pay the amount or to file the objections on the determination of the stamp duty and penalty. In response thereto, the petitioner had submitted his objections on 03.03.2025 along with relevant citations, in view of the fact that the agreement of sale is in respect of agricultural land and the Stamp Duty in the State of Telangana, as per 6-A (3) of Schedule-I of the Indian Stamp Act, is only Rs.200/- and the difference is only Rs.180/- and therefore calculating the amount @ 0.5% on total consideration value is perse illegal.

4. The learned Senior Counsel for petitioner would further submit that the respondent No.3 without considering the objections and citations had passed impugned order. As the property sought to be purchased by the petitioner is only an agricultural land and the stamp duty is payable under Article 6-A (3) of Scheule-1 of the Indian Stamps Act which is only Rs.200/- and the provisions of Article 6-B of Schedule-1 of the Indian Stamps Act as claimed by the respondent No.3 are not applicable and prayed to allow the writ petition by setting aside the impugned order.

5. The learned Counsel for the petitioner in support of his contentions, placed reliance on the following citations:

1. Shaik Jani Pasha Vs. State of Telangana, 2023 SCC Online TS 632

2. Vanapalli Jayalaxmi @ Venkata Jayalaxmi Vs. A. Kondal Rao and Others, 2014 (1) ALT 356

6. The learned Assistant Government Pleader for Stamps and Registration basing on the counter filed by the respondent No.3 would submit that the document sought to be impounded was examined by the respondent No.3, which is in respect of agricultural land admeasuring to an extent of Ac.2.08 guntas in Sy