2022 (1) TMI 1426 - HC - Indian Laws

Refund of amounts collected from the petitioners as stamp duty on Bills of Entry filed for the goods imported - HELD THAT - There is no escape for the State from the fact that it could not have insisted or compelled the writ-applicants to deposit an amount of Rs. 2,48,45,110/- towards the stamp duty - It appears from the materials on record, more particularly, from page-71 onward that all the delivery orders are in the nature of bill of entry. The respondents nos. 1, 2 and 3 respectively are directed to refund the amount of Rs. 2,48,45,110 00 collected by way of stamp duty from the writ-applicants with 9% interest per annum for the period when the amount was collected till the actual refund of the same. Application allowed.

Summary

Issues:
1. Refund of stamp duty on bills of entry.
2. Levying interest on the refunded amount.
3. Compulsion to deposit stamp duty despite settled law.

Analysis:
1. Refund of Stamp Duty on Bills of Entry:
The writ-applicants sought a writ of mandamus to refund Rs. 2,48,45,110/- collected as stamp duty on bills of entry for imported goods. The court referred to a previous judgment which clarified that stamp duty cannot be charged on bills of entry. Despite this settled legal position, the writ-applicants were compelled to pay the stamp duty. The court held that the State had no justification for insisting on the payment. The court directed the respondents to refund the entire amount to the writ-applicants with 9% interest per annum until the actual refund is made.

2. Levying Interest on the Refunded Amount:
In addition to the refund of the stamp duty, the court ordered the respondents to pay interest at the rate of 9% per annum on the refunded amount from the time of collection until the actual refund. This decision was based on the wrongful compulsion of the writ-applicants to deposit the stamp duty despite the clear legal position against such levy.

3. Compulsion to Deposit Stamp Duty Despite Settled Law:
The court emphasized that the State had no escape from the fact that it wrongly compelled the writ-applicants to deposit Rs. 2,48,45,110/- as stamp duty. The court noted that all delivery orders in question were in the nature of bills of entry, and a previous judgment had clearly established that stamp duty cannot be charged on bills of entry. The court also highlighted the legal position regarding bills of lading and delivery orders, correcting certain erroneous findings made by a lower court. Ultimately, the court allowed the writ-application, directing the respondents to refund the stamp duty amount and pay interest as specified.

This detailed analysis of the judgment highlights the issues raised, the legal principles applied, and the final decision rendered by the court in favor of the writ-applicants.