HIGH COURT OF JUDICATURE FOR RAJASTHAN

BENCH AT JAIPUR

D.B. Civil Writ Petition No. 1295/2022

1.

State Of Rajasthan, Through Sub-Registrar-VII,

Department Of Registration And Stamps, Jaipur.

2.

Collector (Stamps), Jaipur Circle-II, Jaipur.

----Petitioners

Versus

1.

M/s Niramaya Wellness Retreats Private Limited

54, Richmand Road, Rokline Centre, Bangalore-560025

through Authorized Representative Mohan Dhamrajan S/o

Shri K.V. Dharmrajan, Resident Of 305, Madhav Durga

Enclave, 60 Feet Road, BEML, 5^th Stage, Bangalore-

560025.

2.

M/s Chitra Hospitality And Development Services Pvt.

Ltd., 205, Mahaveer Bhawan, Karampura Complex, New

Delhi Through Director.

----Respondents

For Petitioner(s)

:

Mr. R.P. Singh, AAG

Mr. Hemant Kothari

For Respondent(s)

:

Mr. Ashutosh Bhatia

Mr. Kamlendra Sihag

Mr. Abhay Jain

HON'BLE MR. JUSTICE PANKAJ BHANDARI

HON'BLE MR. JUSTICE BIRENDRA KUMAR

Order

Reserved on

:

28/02/2022

Date of Pronouncement

:

05/03/2022

(PER HON. BIRENDRA KUMAR,J.):

1.

In this application under Articles 226 and 227 of the

Constitution of India, the State of Rajasthan has challenged the

correctness and legality of order dated 22.12.2021 passed in

Revision No.2021/574/Jaipur, by the Rajasthan Tax Board, Ajmer,

in exercise of power under Section 65 of the Rajasthan Stamp Act,

(2 of 12)

[CW-1295/2022]

1998, (a copy at Annexure-2) whereby the Board has set aside

the order of the Collector (Stamps), Jaipur Circle-II dated

23.06.2021 passed in case No. 41/2021, (a copy at Annexure-2)

whereby the Collector held that the agreement between

respondents No. 1 and 2 dated 26.03.2018, (Annexure-1) is a

“leave and licence” and as such liable to pay stamp duty under the

Rajasthan Stamp Act.

2.

It is not in dispute that “leave and licence” is chargeable with

stamp duty under Rajasthan Stamp Act. We are not going into the

details of the charging Provisions of Section 3, definition of Section

2(xix), wherein word “instrument” has been defined, 2(xi) wherein

“conveyance” has been defined, 2(xxi) wherein “lease” has been

defined and 2(xxi-a) wherein “Leave and Licence” has been

defined, as there is no dispute at the bar that if the agreement, in

the nature is a document of leave and licence, it is liable to be

charged with stamp duty.

3.

The only disputed question is whether agreement dated

26.03.2018 at Annexure-1 is a “leave and licence”, as defined

under the Act and as such chargeable with stamp duty under

Rajasthan Stamp Act or it is simply a Hotel Management

Agreement between the parties, as such exempted under Article

5(g) of the Schedule to the Rajasthan Stamps Act, 1988 as

claimed by respondent No.1.

Another point for consideration is whether the Revisional

Authority was within its jurisdiction under Section 65 of the Stamp

Act in reappraising the same set of evidence and recording a

different conclusion without meeting with the reasons of the

Collector (Stamps).

(3 of 12)

[CW-1295/2022]

4.

The factual matrix giving rise to this application is that

respondent No.2-M/s Chitra Hospitality And Development Services

Pvt. Ltd., the owner of Hotel Royal Heritage entered into a written

agreement with respondent No.1- M/s Niramaya Wellness Retreats

Private Limited on 26.03.2018. A copy at Annexure-1 stating

therein as follows:-

“1.

The owner has vide lease dated 2^3rd May 2014

(hereinafter referred to as Lease Deed") taken on

lease a Hotel commonly known as Royal Heritage

Haveli, which is situated at Plot no. 116 & 117, Near

Khatipura Tiraya, Khatipura, Jaipur, Rajasthan-

302012, from its actual owner SMS Investment

Corporation Pvt. Ltd. (hereinafter referred to as

Property") for a period of 19 years 11 Months to

operate and manage the hotel as a heritage resort.

2.

With effect from the date of this Agreement,

the balance term of the Lease Deed shall be 16

years 1 m