The provision mandating a 50% deposit for reference under Section 47-A of the Stamp Act was found unconstitutional as it violated the principle of equal protection under Article 14.

1In this writ petition, the constitutional validity of S.47 - A of Indian Stamp Act, 1899 as amended by A.P. Act No.8 of 1998 is challenged. By the said provision, the party whose document is presented for registration is required to deposit 50% of differential duty as estimated by the registering authority.

2. The petitioner had purchased land bearing S. No.594 / B situated at village Kapra of Keesara Mandal of Ranga Reddy District. Firstly, agreement of sale was entered on 25-1-1989 and as there was breach of contract in performance on the part of Vendor, a suit in O.S. No.1416/97 was filed before II Additional Senior Civil Judge, Hyderabad and the same was decreed. When the sale - deed was not executed pursuant to the decree. Execution Petition No.5/2000 was filed. An Officer of the Court was deputed to present the sale - deed which was stamped according to the directions of the Court. But, the registering authority raised objection with regard to quantum of non - judicial stamps, on which the sale - deed was engrossed. By letter No.288/2000, dated 19-2-2000, the registering authority, the Sub-Registrar Malkajigiri, Ranga Reddy District, has addressed to the Second Senior Civil Judge, City Civil Court, Hyderabad that the document has to be referred under S.47 - A and as a condition precedent for such reference, has called upon the party i.e. the petitioner to pay 50% of the differential amount according to the estimate made by him. Insofar as the action of the registering authority is concerned, he cannot be found fault with as the above requisition in Letter dated 19-2-2000 is in accordance with the provision contained in S.47 - A of the Stamps Act, that is how, the validity of the above provision is assailed in this writ petition.

3. Mr. R. Narasimha Reddy, the learned counsel appearing for the petitioner submits that the estimate made by the registering authority is only provisional and that will attain finality only after the authority on reference under S.47 - A adjudicates the same and for the reference for such adjudication, no obligation can be imposed to deposit 50% of the provisional valuation and that the said provision contained under S.47 - A is arbitrary and unreasonable violating the fundamental rights guaranteed in Arts.14 and 19(1)(g) of the Indian Constitution.

4. Countering the said arguments, Mr. D. Prakash Reddy, the learned Additional Advocate - General appearing for the State submits that the provision contained under S.47 - A is salutary and should the pary raise objection to the preliminary valuation made by the registering authority, it being a creature of a Statute providing a remedy, for availing such remedy, the statutory requirement of 50% deposit has to be made and that such a provision is not arbitrary and not unreasonable and that there is no violation of any of the fundamental rights guaranteed in Part - III of Indian Constitution.

5. Stamp Act levying stamp duty is an enactment of the Parliament. The source is Concurrent List i.e. List III of Schedule VII appended to the Indian Constitution. The stamp duty was leviable basing upon the amount of consideration mentioned in the document. But, the State of Andhra Pradesh brought forth S.47 - A by A.P. Amendment Act No.22 of 1974, which received the assent of the President. On the advent of the said provision, the concept of market value has undergone a change, thus, empowering the registering authority to levy stamp duty on the basis of the consideration amount stated in the document or the market value as depicted in the Basic Valuation Register, whichever is higher. But, whenever a part raises an objection to such a valuation m