This appeal from the Collector is made under section 39(1) of the Stamp Ordinance. The appellant is dissatisfied with the Collector's assessment on the stamp duty chargeable under the memorandum of transfer.

The method of valuation is determined in accordance with section 12A which states as follows:—

"For the purpose of assessing the value of any property which is the subject of a transfer or settlement, such value shall be taken to be—

(a) the money value, if any, mentioned in the instrument of transfer as the consideration for the transfer or settlement; or

(b) the market value, as on the date of execution, of the property transferred or settled,

whichever be the greater:

Provided that the officer before whom the instrument of transfer is tended for registration may accept the consideration mentioned herein as being the market value, unless he shall have reason to believe otherwise."

The subject-matter of the conveyance is Lot 2450 Mukim of Perak, District of Temerloh. The amount of the consideration was $20,000. The Collector had, however, assessed the duty based on the market value of the land at $122,600 i.e. at $12,000 per acre and assessed the stamp duty at $1,452. The applicants contend that the duty should be based on the consideration as declared by the parties in the transfer at $20,000. The Collector, however, says that since the market value is greater than the amount of the consideration, the market value following section 12A should be the value of the property at the time of the transfer. One will notice, however, that there is no definition of what "market value" means in the Ordinance. One would necessarily have to rely on the principle applicable in land acquisition cases for its meaning.

The land is situated approximately 2½ miles by road south-west of Bandar Baru, Temerloh. It is 1½ miles outside the Town Board boundary. The road to the land from Temerloh is via Jalan Bahagia in Bandar Baru, leading to Kampong Kelulut and Bee Yong Estate. The road is metalled for the first 1½ miles and then becomes a made-up gravel road alongside the south of the subject property. The immediate vicinity of the subject lot consists mainly of agricultural land. Kampong Bukit Kelulut is a small village consisting of some 70 kampong houses, a balai raya, a surau and three shophouses. The subject lot is irregular in shape. It is about eight feet below road level. It drops gradually to the back until it reaches a paya. The land is cultivated with old rubber and overgrown with belukar. There are no buildings on the land. There is no electricity and water supply to the immediate vicinity. These are available up to Kampong Bukit Kelulut at the point where the metalled road ends. There is no bus service to the area. The owner has not applied for any permission to develop the land. There is no zoning plan for the area. The proposed Temerloh/Mentakab Highway runs through the centre of the subject property. This fact was known to the public in August 1978 because the J.K.R. had earlier drawn up a tentative alignment. The above facts are given by the government valuer in his report in Bundle A at page 1. It is admitted by the government valuer that the subject land and the adjacent lands are undulating. It is also an uncontroverted fact that all the adjacent lands are agricultural in category. It is also noteworthy that lands directly to the east and opposite the land in question is a Chinese cemetery which may or may not be taken into account for valuation purposes, depending on whether it is accepted that some people are superstitious about staying near a grave. Except for the last, the parties seem to be on common ground on the above facts.

The applicants had through their valuer (PW1) relied on lands in the immediate locality of the subject land as comparables. These lands are tabulated below giving the size, the value per acre and the respective dates of their transaction:— Lot No.SizeValue Per AcreDate of Transactio