The court affirmed that notifications granting reduced stamp duty create binding commitments, preventing the state from retroactively imposing additional charges after registration.

CAV Order

1. The present petition has been filed by the State against the order dated 14- 03-2016 (Annexure-P/1) passed by the C.G. Board of Revenue, Bilaspur in case No. R.N./14/R/B-103/225/2002-03 whereby the revision filed by the respondent No.1 was allowed and the order dated 31-01-2013 passed by the Collector of Stamps, Raipur (C.G.) has been set aside.

2. Brief facts of the case as emerges from the pleadings of the writ petition as well as documents annexed thereto are that, a lease deed of the land admeasuring 389.704 hectare, situated at Industrial Development Center, Siltara, Raipur was executed in between M.P. Audyogik Kendra Vikas Nigam Ltd. Raipur and Nagpur Alloys Casting Ltd., Siltara on 26-03-1996. The said Nagpur Alloys Casting Ltd. is presently known as M/s Jayaswal Neco Industries Ltd. Raipur. At the time of registration of the said lease dead the stamp duty of Rs.50,000/- was paid as per notification No.F-16/03/92/Eleven/B dated 27-06-1992 issued by the Department of Commerce and Industries, State of Madhya Pradesh on 26-03-1996.

A case for recovery of deficit stamp duty was registered under Section 33 read with Section 40-B and 48-B of the Indian Stamp Act, 1899 and show cause notice was issued to respondent No.1 company. The respondent No.1 company had filed its reply on 19-06-2003 before the Collector of Stamp, Raipur. In the reply, respondent No.1 had submitted that the stamp duty of Rs.50,000/- has been paid on the said lease deed as provided under clause 7 of the notification dated 27-06-1992 issued by the Department of Commerce and Industries. It was further contended in the reply that since Nagpur Alloys Casting Ltd. In whose favour the lease deed was executed had fulfilled all the requisite conditions under the notification dated 27-06- 1992. in consonance of the notification issued by the erstwhile State of M.P., now State of C.G. has also issued notification on 08-10-2004 wherein similar benefits have been granted to the industrial unit having investment of more than Rs.1000 crore. The Collector of Stamp, Raipur after considering the matter comes into conclusion that the notification dated 27-06-1992 was not issued under Section 9(1) of the Indian Stamp Act and the proper stamp duty has not been paid in the instrument in accordance with Schedule I-A of Section 35, Section 40 and Section 48-B of the Indian Stamp Act, 1899 . Since the notification dated 27-06-1992 is not issued under Section 9(1) of the Indian Stamp Act, 1899 the benefit of reduction or remittance in stamp duty cannot be granted to the petitioner and while exercising the powers of Section 40 and 48-B of the Indian Stamp Act, 1899 and also in view of the Schedule I-A of Section 35 of the Indian Stamp Act, 1899 , the Collector of Stamp, Raipur vide order dated 31-01-2013 directed the respondent No.1 company to pay the stamp duty of Rs.26,27,830/- and cess at the rate of 5% amounting to Rs.1,31,392/-, total amounting to Rs.27,59,222/- and registration charges amounting to Rs.20,69,470/-. Further after deducting the amount which has been already paid by respondent No.1 company it has been directed to pay deficit stamp duty of Rs.27,09,222/- and registration charges of Rs.20,31,917/-, which total comes to Rs.47,41,139/- and further penalty of Rs.2,00,000/- was also imposed upon the respondent No.1 company.

The order dated 31-01-2013 passed by the Collector of Stamps, Raipur