2016 (7) TMI 764 - HC - Indian Laws

Exemption from payment of stamp duty on the sale deed - Held that - In the instant case the sickness certificate with regard to sick unit of HSGL purchased by the petitioner was issued on 29-1-2008, albeit by the Commissioner Industries i.e. prior to the sale deed dated 25-6-2008. It is not in dispute that the Commissioner Industries is an authority superior to the General Manager, DIC in the same department, and is of the considered view that such a certificate issued by the Commissioner Industries ought to have supplied the condition for exemption of stamp duty. However, in any event, subsequently a rectification qua the certificate of sickness issued by the Commissioner Industries on 29-1-2008 has been issued on 4-12-2012 by the General Manager, DIC. Thus, in considered opinion, the certificate dated 29-1-2008, in any event now holds good even on the literal reading of the notification dated 26-7-2003, as the rectification of 4-12-2012 would relate back to the original certificate of sickness dated 29-1- 2008. In the circumstances, the impugned judgments dated 10-10- 2013 and 21-8-2015 passed by the Tax Board are liable to be quashed and set aside. They are so. The matter is remanded to the Tax Board for deciding the revision petition afresh with reference to rectification dated 4-12-2012 issued by the General Manager, DIC relating to the certificate of sickness dated 29-1-2008 earlier issued by the Commissioner Industries. The revision petition be decided within a period of eight weeks from the date of receipt of a certified copy of this order.

Summary

Issues:
1. Exemption from payment of stamp duty on a sale deed dated 25-6-2008.
2. Validity of the sickness certificate issued by the Commissioner Industries for exemption under the notification dated 26-7-2003.
3. Effect of rectification certificate issued by the General Manager, District Industries Center on the exemption claim.
4. Dismissal of the review petition and maintainability of the same.

Analysis:
1. The issue in this case revolves around the petitioner company's right to exemption from stamp duty on a sale deed dated 25-6-2008, based on the State Government's notification dated 26-7-2003. The company claimed exemption due to purchasing a sick unit of HSGL, declared sick under the Act of 1985, and a certificate of sickness issued by the Commissioner Industries.

2. The Collector (Stamps) initially allowed the exemption claim, but later issued a show cause notice demanding stamp duty due to technicalities regarding the issuer of the sickness certificate. The Collector held that the certificate should have been issued by the General Manager, District Industries Center, not the Commissioner Industries, leading to the denial of the exemption claim under the notification dated 26-7-2003.

3. The petitioner sought rectification of the sickness certificate, which was issued by the General Manager, District Industries Center on 4-12-2012. The rectification aimed to correct the technicality of the issuer of the certificate. However, the rectification certificate was not presented during the revision petition, resulting in dismissal by the Tax Board.

4. The High Court, after considering the facts and legal precedents, found that the rectification certificate dated 4-12-2012 rectified the technical issue regarding the issuer of the sickness certificate. The Court emphasized that the intent of the exemption notification should not be narrowly interpreted to deny the benefit to the petitioner. Consequently, the High Court quashed the judgments of the Tax Board and remanded the matter for fresh consideration with reference to the rectification certificate.

Conclusion:
The High Court allowed the petition, setting aside the judgments of the Tax Board and remanding the case for reconsideration with respect to the rectification certificate issued by the General Manager, District Industries Center. The Court directed the Tax Board to decide on the revision petition within eight weeks from the date of receipt of the order.