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TMI Blog2024 (9) TMI 237X X X X Extracts X X X X X X X X Extracts X X X X ..... effect? - HELD THAT:- The impugned order is primarily based on interpretation of law. According to Collector of Stamps, Sidhi, the instrument became chargeable on the date of execution i.e., 2-3-2017, whereas it is the case of the Petitioners that the instrument is chargeable on the date when it is received in State of Madhya Pradesh. Therefore, this Court is of the considered opinion, that so far as the interpretation of law is concerned, the vague Show Cause Notice will not have any adverse effect. Therefore, this Court would like to proceed further to decide that which date is relevant for making an instrument chargeable in State of Madhya Pradesh, i.e., whether the date on which the instrument was executed in State of Uttar Pradesh or the date on which the instrument was received in Madhya Pradesh - the submissions made by the Counsel for the parties shall be considered in the light of the law relating to interpretation of fiscal laws. Whether order dated 2-3-2017 passed by NCLT Allahabad is an instrument? - HELD THAT:- The order passed by NCLT Allahabad, thereby accepting the Scheme of arrangement by which the properties were transferred is an instrument chargeable under India ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... M.P. on 29-6-2017, therefore, it became chargeable on the said date and the rate of stamp duty which was prevailing on 29- 6-2017 would apply. It is held that since, the cap on stamp duty to the tune of Rs. 25 Cr came into existence by Notification dated 3-7-2017, therefore, the Petitioner No. 1 is not entitled for the benefit of cap of Rs. 25 cr. Thus, the Collector of Stamps, Sidhi did not commit any mistake by not extending the benefit of cap of Rs. 25 cr. Thus, the findings recorded by the Collector of Stamps, Sidhi regarding cap of Rs. 25 cr. is affirmed, although on different ground. It is further observed, that the findings given by Collector of Stamps, Sidhi are not well reasoned as claimed by State Counsel. Whether Stamp Duty of 1% is chargeable on movable properties? - HELD THAT:- From plain reading of Section 9 of Indian Stamp Act, it is clear that Section 9 is not a charging provision and it merely gives power to the Govt. to reduce, remit or compound duties. Since, there is no provision in proviso to Article 25 of Schedule 1-A of Indian Stamp Act, for charging stamp duty on movable property, therefore, the State Counsel is incorrect in submitting that 1% stamp duty ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lief(s) : 7.1 This Hon ble Court may kindly be pleased to issue appropriate writ, order and direction : a. to quash the impugned order dated 24-10-2020 (Annexure-P/22) passed by the Respondent being illegal arbitrary and exorbitant; b. to hold that the Petitioner is not liable to pay stamp duty on the order of NCLT Allahabad dated 2-3-2017 in view of the express statutory provision contained in the Indian Stamp Act, 1899 (as applicable to State of M.P.) ; c. That, any other relief deemed fit in the facts and circumstances of the case may also kindly be granted. 2. It is submitted by Counsel for the Petitioner, that at the time of admission of this writ petition, a preliminary objection was raised by the Respondents with regard to alternative remedy and the Co-ordinate Bench by order dated 25-11-2020, has rejected the preliminary objection. The Petitioner No.1 is a Company incorporated under the provisions of Companies Act. The Petitioner No.1 is the part of conglomerate Aditya Birla Group. 3. The State of M.P., by notification bearing No.F.8-429-2014- 2V(01) dated 2-1-2015 issued under Section 9(1)(a) of the Indian Stamp Act, inserted a table of reduced rates in relation to the exi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Pradesh, Department of Commercial Tax, Bhopal regarding chargeability of stamp duty on the NCLT/Scheme of Arrangement as per notification dated 3-7-2017. The Petitioner also made a representation to the Chief Minister on 19-7-2018 seeking his intervention in the matter of imposition of Janpad Cess @ 1% on the sale value of property subject to the instrument under Section 75 of the M.P. Panchayat Raj Avam Gram Swaraj Adhiniyam, 1993. The representation made by the Petitioner No.1 was accepted by the Panchayat and Rural Development Department and vide its order dated 6-10-2018 directed that Janpad Cess was to be collected @ 1% of the Stamp Duty from the Petitioner and not on the value of the assets. 9. On 30-7-2019, the Registration Office, Sidhi directed the Petitioner No.1 to submit the copy of the orders passed by NCLT Mumbai and Allahabad Bench pursuant to which, the Petitioner No.1 had taken over the assets of JAL. In reply to such notice, on 5-8-2019, the Petitioner No.1 submitted a copy of : (a) order dated 15-2-2017 passed by NCLT, Mumbai; (b) Order dated 2-3-2017 passed by NCLT Allahabad; (c) Receipt of Payment of Stamp Duty by Mumbai; (d) From No. INC 28 submitted to Regist ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vable assets; b. Stamp Duty of Rs. 6,13,460/- @ 1% on immovable assets; c. Upkar Cess of Rs. 12,30,53,250/- @ 10% on Stamp Duty; d. Janpad Cess of Rs. 24,61,05,500/- @ 1% of the value of Immovable assets; e. Penalty of Rs. 137,62,62,911/- @ 2% for 43 months. 15. Challenging the impugned order passed by the Collector of Stamps, Sidhi, it is submitted by Counsel for Petitioners, that as per the provisions of Section 3(bb),19-A of Indian Stamp Act, the instrument would be chargeable on the date when it is received in State of Madhya Pradesh. In the present case, although the Petitioner had earlier claimed that the instrument i.e., order dated 2-3-2017 passed by NCLT Allahabad was brought in State of M.P. on 24-10-2017, but in fact it was received in M.P. on 5-8-2019. Therefore, in view of notification dated 3-7-2017, the Petitioners were required to pay Rs. 25 Cr.s only as the maximum cap of Rs. 25 Crores as provided in notification dated 3-7- 2017. Similarly, in view of the notifications dated 6-10-2018 and 25-8- 2020, the Janpad Cess @ 1% was chargeable on stamp duty and not on the value of the assets. Since, the Collector of Stamps, Sidhi had not initiated any proceedings under Sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... State of M.P. would be 29-6-2017 and not 24-10-2017 or 5-8-2019 as claimed by the Petitioner. (Here it is not out of place to mention here that neither the nature of documents has been clarified by the State nor a copy of the same has been placed on record). It is submitted that since, the notification dated 3-7-2017 came into force after the receipt of instrument in State of M.P. i.e., 29-6-2017, therefore, the provision of maximum cap of Rs. 25 Cr. would not apply and the Collector of Stamps, Sidhi has passed the correct order. It is further submitted that the State of M.P. by notification dated 2-1-2015 issued in exercise of Power under Section 9(1)(a) has fixed the rate of stamp duty of 1% on movable assets. To buttress his contentions, the Counsel for the Respondents has relied upon the Judgments passed by Supreme Court in the case of State of Uttar Pradesh and Another Vs. Uttar Pradesh Rajya Khanij Vikas Nigam Sangharsh Samiti and others reported in (2008) 12 SCC 675, Judgment passed by Allahabad High Court in the case of Ramesh Chandra Srivastava vs. State of U.P. and others reported in AIR 2007 All 39 and Full Bench of Rajasthan High Court in the case of Nanga Vs. Dhannalal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amp Act. It is further submitted that since, the Petitioner has challenged the impugned order on the ground that the Stamp duty assessed by Collector of Stamps, Sidhi is exorbitant, therefore, the appeal should have been preferred. 21. In reply, it is submitted by Counsel for the Petitioner, that the objection of alternative remedy has already been rejected by this Court by order dated 25-11-2020. Further more, since, question of Jurisdiction and Law are required, therefore, the alternative remedy is not efficacious remedy. 22. Considered the submissions made by Counsel for the Parties on the question of alternative remedy. 23. This Court by order dated 25-11-2020, had passed the following order : Heard the learned Counsel for the parties. Objection raised by the learned Dy. Advocate General appearing for the State is overruled. This Court has discretion to entertain a writ petition despite availability of alternative remedy when question of jurisdiction of authority, violation of natural justice and fundamental rights are raised in writ petition. Petitioner has raised question of jurisdiction and law, therefore, writ petition is admitted for hearing. 24. The moot question for cons ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ta is embodied in relation to suits in Section 11 of the Code of Civil Procedure; but even where Section 11 does not apply, the principle of res judicata has been applied by courts for the purpose of achieving finality in litigation. The result of this is that the original court as well as any higher court must in any future litigation proceed on the basis that the previous decision was correct . (SCR p. 594) The principle of res judicata applies also as between two stages in the same litigation to this extent that a court, whether the trial court or a higher court having at an earlier stage decided a matter in one way will not allow the parties to reagitate the matter again at a subsequent stage of the same proceedings. (SCR p. 594) But an interlocutory order which had not been appealed from either because no appeal lay or even though an appeal lay an appeal was not taken can be challenged in an appeal from the final decree or order. (SCR p. 600) 29. Since, the respondents did not challenge the order dated 25-11- 2020, therefore, the principle of Res-Judicata would apply and the respondents cannot re-agitate the question of alternative remedy in the same proceedings. Therefore, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of certified copies Such certified copies may be produced in proof of the contents of the public document or parts of the public documents of which they purport to be copies. 36. Thus, it is clear that the certified copy of an instrument i.e., order of NCLT Allahabad would have proved the contents of the said document only, but for the purposes of stamp duty, it would not have any relevance, because the chargeable stamp duty is to be ascertained by Collector of Stamps. Therefore, this Court is of the considered opinion, that the very genesis for initiating the proceedings by issuing show cause notice dated 24-2-2020 was based on incorrect facts and is bad in law for the reasons that the Petitioner No.1 was directed to do something which was impossible. 37. However, the moot question for consideration is that whether the aforesaid illegality committed by Collector of Stamps would vitiate the entire proceedings including the impugned order dated 24-10-2020 or not? 38. The impugned order is primarily based on interpretation of law. According to Collector of Stamps, Sidhi, the instrument became chargeable on the date of execution i.e., 2-3-2017, whereas it is the case of the Petiti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and to provide against such distortions and abuses. Indeed, howsoever great may be the care bestowed on its framing, it is difficult to conceive of a legislation which is not capable of being abused by perverted human ingenuity. The Court must, therefore, adjudge the constitutionality of such legislation by the generality of its provisions and not by its crudities or inequities or by the possibilities of abuse of any of its provisions. If any crudities, inequities or possibilities of abuse come to light, the legislature can always step in and enact suitable amendatory legislation. That is the essence of pragmatic approach which must guide and inspire the legislature in dealing with complex economic issues. 23.6. In Commr. of Customs v. Dilip Kumar Co. , after considering various decisions on the interpretation of fiscal statutes, it is ultimately concluded that every taxing statute including, charging, computation and exemption clauses, at the threshold stage should be interpreted strictly. Further, though in case of ambiguity in charging provisions, the benefit necessarily goes in favour of the assessee, but for an exemption notification or exemption clause the benefit of ambiguit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... irected Registration Office, Sidhi to recover Stamp Duty on the order dated 2-3-2017 issued by NCLT Allahabad 15. 24-2-2020 Notice was issued to Petitioner No.1 to produce the original copy of Order passed by NCLT Allahabad 16. 5-8-2020 Reply was filed 17. 25-8-2020 State Govt. issued Notification directing collection of Janpad Cess @ 1% of the Stamp Duty 18. 14-10-2020 Petitioner No.1 filed an application before Collector of Stamps, Bulandshahar for adjudication of stamp duty on order of NCLT Allahabad 19. 24-10-2020 Impugned order was passed by Collector of Stamps, Sidhi 20. 31-3-2021 Collector of Stamps, Bulandshahar passed an assessment order thereby ascertaining that payable stamp duty is Rs. 92,50,00,000/- and after adjusting the stamp duty of Rs. 32,37,50,000/- paid by the Petitioner No. 1 in pursuance of order of Collector of Stamps, Mumbai, directed to pay the balance amount of Rs. 60,12,50,000/- Whether order dated 2-3-2017 passed by NCLT Allahabad is an instrument? 42. The Counsel for the Petitioner as well as the Counsel for the respondent submitted that order dated 2-3-2017 passed by NCLT Allahabad is an instrument. Although there was a consensus on this issue, still t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ably transferred. 23. Point as to whether the stamp duty was leviable on the court order sanctioning the scheme of amalgamation was considered at length in Sun Alliance Insurance Ltd. v. IRC . On the point which arose for determination as to whether the stamp duty was payable on the order of the Judge sanctioning the scheme of arrangement under Section 206 of the Companies Act, it was held: (All ER p. 142 d - f ) It follows that it is the court order that effects the transfer; and this is nonetheless so because the scheme is not operative until an office copy has been delivered to the Registrar of Companies for registration, for the court order itself ordered that to be done and the Act so provides; nor because London has still to cause the name of Sun Alliance to be entered on to the register as the holder of the shares. The registration of the transferee occurs in every case where a transfer is executed, and merely perfects the title of the transferee. The same thing occurs in the case of registered land, where one finds a transfer and subsequent registration. I have therefore come to the conclusion that by the court order the shares were transferred to Sun Alliance, or, to use t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The question before the Court was whether the amalgamation amounted to transfer of tenant company s right under the lease by way of sub-letting and as such violative of the provisions of Section 10( ii )( a ) of the A.P. Buildings (Lease, Rent and Eviction) Control Act as also the terms of the rent agreement. It was observed that the A.P. Act prohibited in specific terms both sub-letting as well as transfer or assignment of the interest of the tenant. By the order of amalgamation, the interest, rights of the transferor company in all its properties including leasehold interest tenancy rights and possession were transferred and vested in the transferee company voluntarily and the transferor company was dissolved and ceased to exist for all practical purposes in the eye of the law. This amounted to contravention of Section 10( ii )( a ) of the A.P. Rent Act as well as of the terms of the said rent agreement thereby making the transferee company liable to be evicted from the tenanted premises. Though, the Court held that the transfer was voluntary but still to test the argument and treating it to be involuntary it was observed that there was no express provision in the A.P. Rent Act t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n merely going by the label but what is decisive is by the terms of the document. It is clear from the terms of the consent decree that it is also an instrument under which title has been passed over to the appellants-plaintiffs. It is a live document transferring the property in dispute from the defendants to the plaintiffs. The aforesaid decree was based on an agreement between the parties. So is the case with an order under Section 394 of the Companies Act which is also based on an agreement between the transferor company and the transferee company. 43. Thus, it is clear that order passed by NCLT Allahabad, thereby accepting the Scheme of arrangement by which the properties were transferred is an instrument chargeable under Indian Stamp Act. Whether the Stamp Duty is payable on the date of execution of instrument or it is payable when it is received in State of M.P. 44. Since, it is a question of law, therefore, this Court thinks it apposite to decide the same in spite of the fact that the Show Cause Notice dated 24-10-2020 was not in accordance with law. 45. By relying on the provisions of Section 3(bb) as well as Section 19-A of Indian Stamp Act, it submitted by Counsel for th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... our of, the Government in cases where, but for this exemption, the Government would be liable to pay the duty chargeable in respect of such instrument; (2) any instrument for the sale, transfer or other disposition, either absolutely, or by way of mortgage or otherwise, of any ship or vessel, or any part, interest, share or property of or in any ship or vessel registered under the Merchant Shipping Act 1894 or under Act 19 of 1838, or the Indian Registration of Ships Act, 1841 (10 of 1841) as amended by subsequent Acts; (3) any instrument executed by, or, on behalf of, or, in favour of, the Developer, or Unit or in connection with the carrying out of purposes of the Special Economic Zone. Explanation- For the purposes of this clause, the expressions Developer , Special Economic Zone and Unit shall have meanings respectively assigned to them in clause (g), (za) and (zc) of Section 2 of the Special Economics Zones Act, 2005. 51. Section 19-A of Indian Stamp Act reads as under : 19-A. Payment of duty on certain instruments liable to increased duty in Madhya Pradesh under clause (bb) of section 3 Where any instrument has become chargeable in any part of India other than Madhya Pradesh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Jute Mills Co. Ltd. (Supra) has held as under : 16. Some complications arise in the cases where both the liabilities arise i.e. where the instrument is executed in one State but is related to property situated in or to things done or to be done in another State and is received in the second State. In these cases the liability to stamp duty arises first under the stamp law of the first State on account of the execution in the State; a second liability arises under the law of the second State when the instrument is received in that second State. * * * * 19. Section 19-A in terms applies only to an instrument which afters becoming chargeable in any State outside Uttar Pradesh becomes chargeable in Uttar Pradesh with a higher rate of duty. It seems to us, however, that where the rate of duty in Uttar Pradesh is the same or even lower, no further duty is payable on such an instrument. For, it would be anomalous and unreasonable to hold that the legislature intended that though where a higher rate is payable in Uttar Pradesh the excess need only be paid, the Uttar Pradesh rate should be paid in full where what has already been paid is the same or higher. * * * * 20. The result of this w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hanged its stand and submitted that only the date of execution of instrument is relevant and not the date on which the instrument was received in State of M.P. 58. Considered the submissions made by Counsel for the parties. 59. As already pointed out, every taxing statute including, charging, computation and exemption clauses, has to be interpreted strictly. However, in case of ambiguity in charging provisions, the benefit necessarily goes to the assessee, but for an exemption notification or exemption clause the benefit of ambiguity must be strictly interpreted in favour of the Revenue/State. Therefore, a person claiming exemption has to establish that his case squarely falls within the exemption notification, and while doing so, a notification should be construed against the assessee in case of ambiguity. 60. In Section 3(bb) and Section 19-A of Indian Stamp Act, the word Received is mentioned and not Produced or submitted or actually received . If the word Received is read as a synonyms of Produced or submitted or actually received , then the payment of stamp duty would be at the mercy of the party to the instrument, and this interpretation would frustrate the very purpose of fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... heir rejoinder. However, as already pointed out, Shri P. Chidambaram, Senior Advocate has accepted that those four documents were Mining Lease Transfer Deeds and the aforesaid deeds were got registered because the Petitioner No.1 did not want that any mining lease should remain in the name of JAL. Although it has not been clarified by any of the party, that whether the copy of order passed by NCLT Allahabad was submitted at the time of registration of four documents or not, but one thing is clear that there is a clear reference of order of NCLT Allahabad. Not only there was reference of order of NCLT Allahabad in the registered deeds, but the execution of four Mining Lease Transfer Deeds clearly show that the Petitioner No.1 had acted upon the order passed by the NCLT Allahabad. Once, the Petitioner no.1 had put the instrument i.e., order of NCLT Allahabad into operation and had also got the mining lease transferred in its name, then it is held that even if the copy of order of NCLT Allahabad might not have been filed, but still the reference of said order and further action on the basis of said order, would certain mean that the instrument i.e., order of NCLT Allahabad was receive ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the enactment is expressed in language which is fairly capable of either interpretation, it ought to be construed as prospective only . (emphasis supplied) 36. In CIT v. Scindia Steam Navigation Co. Ltd. , this Court held that as the liability to pay tax is computed according to the law in force at the beginning of the assessment year i.e. the first day of April, any change in law affecting tax liability after that date though made during the currency of the assessment year, unless specifically made retrospective, does not apply to the assessment for that year. 65. Since, the instrument i.e., the order of NCLT, Allahabad was already received in M.P. on 29-6-2017, therefore, it became chargeable on the said date and the rate of stamp duty which was prevailing on 29- 6-2017 would apply. It is held that since, the cap on stamp duty to the tune of Rs. 25 Cr came into existence by Notification dated 3-7-2017, therefore, the Petitioner No. 1 is not entitled for the benefit of cap of Rs. 25 cr. Thus, the Collector of Stamps, Sidhi did not commit any mistake by not extending the benefit of cap of Rs. 25 cr. Thus, the findings recorded by the Collector of Stamps, Sidhi regarding cap of Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the decree or the mortgage deed shall be the duty payable under article 43, on the mortgage deed, subject to a minimum of Rs. 1000. (f) Where by an instrument, a person includes the name of his wife or daughter or daughter-in-law severally or jointly as co-owner in his property, the rate of duty shall be one percent on the market value of the property. (g) When an instrument relates to transfer of development right and/or construction right, obtained from the instrument executed under article 6(d)(i), along with consent of land owner or lessee, as the case may be, the rate of duty shall be one percent of market value of the land related to transfer of such right or consideration, whichever is higher, subject to a minimum of one thousand rupees. 67. It is the case of the Petitioner, that as per above mentioned provision, no stamp duty is chargeable on movable property, whereas the Collector of Stamps, Sidhi has charged 1% of the market value of the movable property. 68. Whereas it is the stand of the respondent that as per the Notification dated 2-1-2015, stamp duty @ 1% is chargeable on movable properties. 69. Considered the submission made by Counsel for the parties. 70. The r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sed industry in favour of any financial institution, to secure repayment of loans obtained for industrial purposes only till the Madhya Pradesh Industrial Promotion Policy 2010, as amended in 2012 or the Madhya Pradesh Industrial Promotion Policy, 2014 and its work-plan remains in operation subject to the conditions, that : (a) the industrial unit is situated in an industrial area or industrial growth centre developed by the Government of Madhya Pradesh or Madhya Pradesh Audyogik Kendra Vikas Nigam ; and (b) a certificate of eligibility to the effect that the industry is eligible for remission of stamp duty under this order, is issued by the Commissioner of Industry, Government of Madhya Pradesh. 6. On instruments of agreement related to development of Government land executed by the Tourism Department of the State for tourism projects. 7. Stamp duty is reduced to Rupees Five Hundred only on instruments of agreement relating to repayment of education loan. 8. Stamp duty is reduced to Rupees Five Hundred only on loan related instruments to be executed with Banks for establishment of technical educational institutions, 9. On Agreement or memorandum of am agreement (a) for or relating ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he condition that the new unit/ expanded unit modernized unit is certified to be an information technology/ Business Process Outsourcing outfit by Information Technology Department or any designated agency notified by them under the Madhya Pradesh Information Technology Investment Policy 2012, as amended 2014 or Madhya Pradesh Business Process Outsourcing/ Business Process Management (Business Process Outsourcing /Business Process Management) Industry Investment Policy, 2014 of the State of Madhya Pradesh. Note This exemption shall be applicable only till the Madhya Pradesh Information Technology Investment Policy 2012, as amended in 2014 or Madhya Pradesh Business Process Outsourcing/ Business Process Management (BPO/BPM) Industry Investment Policy, 2014 remains in operations. 8. Stamp duty is reduced to 0.125 percent of the amount of loan secured on instruments of agreement relating to deposit of title deeds for securing loans upto rupees ten crore in case of micro and small scale industries and on loans for residential purposes. 9. On instruments relating to deposit of title deeds, executed by beneficiary in favour of any bank of financial institution for securing repayment of l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... income Group shall be as defined and specified by the Department of Urban Development and Environment from time to time: Provided that this remission shall not be available in case of partly constructed house/apartment. 2. On all kinds of deeds of transfers of agricultural land executed by a person belonging to a Scheduled Tribes in favour of bis legal heir/heirs during his life time. 3. On instruments of sale relating to plot or built up space executed by or on behalf of State Government or any Semi Government Organization or any Government Undertaking, in favour of Information Technology/ Business Process Outsourcing Industries to be established in the State of Madhya Pradesh. 4. On instruments of conveyance of industrial units as a going concern, the rate of duty on the value of plant, machinery and other movables conveyed by the instrument shall be one percent, and also the duty chargeable on a single instrument shall not exceed rupees ten crore. 5. On instruments of sale executed by or on behalf of financial institutions, Government Agencies, or Private Sector by which space/premises in an Information Technology investment area is tansferred in favour of a new unit/ expanded ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Shri . S/o Shri After this registry, the eligibility of exemption of stamp duty shall be available only to the extent of duty chargeable on Rs................. the balance amount of Compensation and special rehabilitation grant. But in no case the amount of duty exempted shall exceed the amount of duty chargeable on the sum of amount of compensation and special rehabilitation grant obtained by Shri S/o Shri................ . Collector, Dhar 7. Stamp duty shall be reduced to half on instrument of sale executed by private persons in favour of a Unit established to generate electricity from nonconventional energy resources subject to the following conditions, namely:- (a) a Bank Guarantee of the sum equal to the amount of stamp duty remitted shall be given by the unit in favour of the State Government for a period of 21 months in case of Wind Energy or Solar Energy Projects and for a period of 36 months in case of Bio-gas or Municipal Waste projects; and (b) the unit shall be liable to pay the amount of stamp duty remitted to the State Government, if the project is not established within the given period of Bank Guarantee. It shall also be the responsibility of the unit lo produce bef ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the conversion, as set-forth in the instrument, but in no case shall the amount of duty chargeable be less than rupees Five Hundred. 12. On the instrument of sale of sick/closed industrial units which are referred to the Board of Industrial Finance and Reconstruction (B.I.F.R.) of a liquidator or acquired by financial institutions or banks or which fall in the category of sick industry as defined by the Reserve Bank of India, subject to the conditions that,- (i) the remission shall be granted only once, On conveyance of unit/assets on which exemption under this notification has been granted once, no exemption in any case shall be granted again; (ii) the remission shall be granted only to such closed and sick units in which the high power committee headed by the Chief Secretary of the State of Madhya Pradesh or the Empowered Committee headed by the Collector of the District, as the case may be, constituted under the provisions of the Madhya Pradesh Industrial Promotion Policy 2010, as amended 2012 or Madhya Pradesh Industrial Promotion Policy, 2014 and its work plan has taken a decision to remit the stamp duty; (iii) to obtain remission the purchaser of unit will have to produce a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Promotion policy 2010 as amended 2012 or Madhya Pradesh Industrial Promotion Policy, 2014 and its work-plan remains in operation. 14, On instruments of conveyance of 12.713 acre land in the campus of former Higher Secondary Technical School, Shahdol and 8 hectare land of Government Survey No. 556/1 of Village Kalyanpura in Jhubua District in favour of Rajeev Gandhi Technical University, Bhopal for establishment of University Institute of Technology, a constituent institution of Rajeev Gandhi Technical University, Bhopal. 15. On instruments of conveyance of 12,120 hectare (25 acres) of total land of four survey numbers i.e. area 7.422 hectare out of 8.359 hectare of survey number 108/3, area 0.063 hectare of survey number 116, area 2.023 hectare of survey number 117/1, and area of 0.612 hectare out of 1.517 hectare of survey number 138, of Village Malsipur in Tehsil Sironj, executed in favour of Rajeev Gandhi Technology University, Bhopal for establishment of University Institute of Technology, Sironj, Vidisha District, a constituent institution of Rajeev Gandhi Technology University, Bhopal. 16. On instruments of purchase of land by displaced/ effected families, to the extent of p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r itself; (d) the eligibility of exemption shall be limited to the amount of Stamp duty chargeable on the value of land and/ or immovable property or the total amount of consideration paid to the said displaced person as compensation, special rehabilitation grant, rehabilitation grant, financial assistance etc., whichever is less; (e) the Stamp duty chargeable on the instrument will be reimbursed by the Narmada Valley Development Authority to Commercial Tax Department con the basis of demand letter produced by the Sub-Registrar; (f) only a displaced family as defined in the Rehabilitation Policy shall be entitled for exemption; and (g) such landless displaced person and adult son, who want to purchase agricultural land and / or other immovable property from various amounts such as rehabilitation grant, financial assistance given to purchase productive assets, financial assistance given for developed residential plot at the: rehabilitation place, shall also be entitled for the said exemption. 18. on instruments executed for, (a) transfer of land acquired by the Commerce, Industry and Employment Department of the State Government, to the Special Purpose Vehicle (SPV) Company constitu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xecuted by a person belonging to Scheduled Tribe in favour of is legal heir/heirs during his life time. 14 Article-37- Indemnity Bond On indemnity bonds to be executed by the guardians of minor dependents of deceased members of the Coal Mines Provident Fund for the purpose of obtaining refund of the fund accumulations. 15 Article-38- Lease 1. On lease deeds executed in relation to the constructed sheds and land allotted to unemployed engineers in notified industrial area by the Commerce, Industries and Employment Department for running their own industry stamp duty shall be remitted subject to the following conditions, namely:- (a) the applicant or all the partners of the firm are either degree or diploma- holder engineer: (b) his total income or the income of his partners from all sources shall not exceed One Thousand rupees per month. 2. On instruments of lease executed by Government in favour of Madhya Pradesh State Tourism Corporation in relation to the land on which the units of the said corporation are situated. 3. On instruments of lease of the Government land executed by the Tourism Department of State of Madhya Pradesh for tourism projects. 4. On instruments of Lease relat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of stamp duty is issued by the Commissioner of Commerce, Industries and Employment Department. Government of Madhya Pradesh. 9. On instruments of lease executed by the Madhya Pradesh Housing Board, Nagar Vikas Pradhikarans, Madhya Pradesh State Co-operative Housing Federation or any urban Local Body in Madhya Pradesh in favour of a person of Economically Weaker Section as defined and specified by the Urban Development and Environment Department from time to time. A certificate from the District Collector to this effect shall have to be produced. The remission of stamp duty shall also be available where the instrument of lease of residential house is executed under the Basic Service For Urban Poor (B.S.U.P.)/Integrated Housing and Development Program(1.H.S.D.P.) in favour of a person, who surrenders the lease already held by him under the Madhya Pradesh Nagariya Kshetro Ke Bhoomihin Vyakti (Pattadhriti Adhikaron Ku Pradan Kiya Jana) Adhiniyam, 1984 (No. 15 of 1984) from the Government on the sites under construction by the said agencies. 10. On instrument of amendment of lease of land and sheds in the Industrial Areas and Industrial Growth Centers, executed by or on behalf of the St ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ficate of Competent Authority to the effect that the instrument is eligible for remission under this notification. The Competent Authority authorized to issue the said certificate in the following manner, namely: Value/market value of the unit competent authority (i) Where it does not exceed Rupees One Crore Collector of the concerned District (ii) Where it exceeds Rupees One Crore Divisional commissioners of the concerned Division. Note.- This exemption shall be applicable only till the operation of the Madhya Pradesh Industrial Promotion Policy 2010, as amended in 2012 or the Madhya Pradesh Industrial Promotion Policy, 2014 and its work- plan. 12. On instruments of lease executed to acquire land in favour of member of a family displaced on account of the Narmada Valley Projects subject to the following conditions, namely:- (a) a certificate from the land acquisition officer of the project area is obtained in which the total amount including the amount of compensation item wise of his land and other immovable properties, special rehabilitation grant, rehabilitation grant etc., is mentioned. But the amount of transport fee paid for self transportation of goods shall not be included ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... #1077; Corporation by the Commerce, Industries and Employment Department for running their own industry on the following conditions, namely:- (a) The applicant or all the partners of the firm are either degree or diploma holder engineers, and (b) His total income or the income of all partners or income of his/her parents does not exceed One Thousand rupees per month. 3. On instruments of mortgage without possession executed by small scale Industrial units for obtaining financial assistance up to Rs. 7.5 lakhs from the Madhya Pradesh Finance Corporation. 4. On instruments of mortgage without possession executed by a New Industry to be set up in the field of energy generation and mineral oil refining, for raising capital to act up the industry, to live 1.akhs rupees where the duty payable on such deed exceeds that amount. Explanation-For this purpose New Industry means an industrial unit which has not gone into production before 19.08.1999 and is so certified by the Commissioner of Commerce, Industries and Employment or any officer appointed by him in this behalf. 5. On instruments of mortgage without possession executed by industrialists or industrial undertakings in the State in co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... M) Industry Investment Policy, 2014. 8 . On instruments of mortgage without possession executed by agriculturists in favour of Banks for securing loans under the Kisan Credit Card Scheme. 9 . On instruments of mortgage without possession executed by Self Help Groups in favour of Banks for securing loans for economic development of group members to the limit of rupees Ten Lakh under the NABARD sponsored schemes. 10 . No stamp duty shall be chargeable on instruments of mortgage without possession executed in favour of Banks for securing loan up to rupees Ten Lakh for agricultural purposes by any Bhumiswami or a pattadhari holding land under Revenue Book Circular -IV-3-10. Also, no stamp duty shall be chargeable for this purpose upto any limit in case of a person belonging to Scheduled Castes and Scheduled Tribes. 11 . On instruments executed by herbal or ayurved bused industry in favour or any financial institution to secure repayment of loans obtained for industrial purposes, remission shall be subject to the conditions. Namely:- (a) the industrial unit is situated in an industrial area or industrial growth centre developed by the Government of Madhya Pradesh or the Madhya Pradesh A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n by which exclusively the agricultural land obtained in inheritance is partitioned amongst the members of joint family. 19 Article-53- Reconveyance of Mortgaged Property On instrument of reconveyance of mortgaged property executed by the Madhya Pradesh Housing Board established under the Madhya Pradesh Housing Board Act, 1960 in favour of any officer of the Government of Madhya Pradesh on the repayment of an advance received by him from the said Board for the purpose of constructing a dwelling house for his own residential use. 20 Article-56- Security bond not being a Mortgage Deed 1. On security bond executed by the surety of an officer of the Government of Madhya Pradesh for the due performance of the terms and conditions of the mortgage deed in Form V presented under the Madhya Pradesh Housing Board Act, 1960, 2. On security bond executed by any person for the purpose of guaranteeing that the local income derived from private subscriptions to a charitable dispensary or hospital or any other object of public utility shall not be less than a specified sum per mensem. 3. On security bond executed by persons taking advances under the Land Improvement Loans Act, 1883 (19 of 1883) or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s defined in the State Bank of India (Subsidiary Banks} Act, 1959 (38 of 1959); (f) a corresponding new bank constituted under the Banking Companies (Acquisition and Transfer of Undertakings ) Act, 1970 (5 of 1970); and (g) a public financial institution as specified in the Companies Act, 2013 (18 of 2013). 3. Agriculture purpose means making land fit for cultivation of land, improvement of land including development of sources of irrigation, raising and harvesting of crops, horticulture, forestry, planting and farming, cattle breeding, animal husbandry, dairy farming, seed farming, pisciculture, apiculture, sericulture, piggery and poultry farming and the acquisition and implementation of machinery in connection with any such activity except Truck, Mini Truck, Matador and Drilling Machine, By order and in the name of the Governor of Madhya Pradesh, RAVINDRA KUMAR CHOUDHARY, Dy. Secretary. 71. Section 9 of Indian Stamp Act, reads as under : 9. Power to reduce, remit or compound duties. (1) The Government may, by rule or order published in the Official Gazette, (a) reduce or remit, whether prospectively or retrospectively, in the whole or any part of the territories under its admini ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 29-6-2017, therefore, whatever Janpad Cess was payable on the said date would apply. Since, the Notifications dated 6-10-2018 and 25-8-2020 are subsequent to the relevant date, therefore, the Janpad Cess @ 1% on the stamp duty is not chargeable, but it is chargeable @ 1% of the value of the immovable assets. Therefore, the imposition of Janpad Cess @ 1% on the value of the immovable assets is hereby affirmed. Penalty 77. It is submitted by Counsel for the Petitioner, that while calculating the Penalty, the Collector of Stamps, Sidhi has also included the Upkar Cess and Janpad Cess, whereas penalty can be imposed only on Stamp duty. Further, no show cause notice was given to the Petitioner, thereby seeking an explanation from the petitioner no. 1 as to why the penalty may not be imposed. 78. Per contra, it is submitted by Counsel for the respondent, that the Collector of Stamps, has no discretion to waive or remit the Penalty. The rate at which penalty is to be imposed is already provided in Section 40 of Indian Stamp Act. 79. Considered the submissions made by Counsel for the parties. 80. The Counsel for the petitioner is right in submitting that no show cause notice was given to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... raction per se does not lead to invalidity of the orders passed. Here again, prejudice must be caused to the litigant, except in the case of a mandatory provision of law which is conceived not only in individual interest, but also in public interest. 42.3 . No prejudice is caused to the person complaining of the breach of natural justice where such person does not dispute the case against him or it. This can happen by reason of estoppel, acquiescence, waiver and by way of non-challenge or non-denial or admission of facts, in cases in which the Court finds on facts that no real prejudice can therefore be said to have been caused to the person complaining of the breach of natural justice. 42.4 . In cases where facts can be stated to be admitted or indisputable, and only one conclusion is possible, the Court does not pass futile orders of setting aside or remand when there is, in fact, no prejudice caused. This conclusion must be drawn by the Court on an appraisal of the facts of a case, and not by the authority who denies natural justice to a person. 42.5 . The prejudice exception must be more than a mere apprehension or even a reasonable suspicion of a litigant. It should exist as a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... repeatedly remarked that the principles of natural justice are very flexible principles. They cannot be applied in any straitjacket formula. It all depends upon the kind of functions performed and to the extent to which a person is likely to be affected. For this reason, certain exceptions to the aforesaid principles have been invoked under certain circumstances. For example, the courts have held that it would be sufficient to allow a person to make a representation and oral hearing may not be necessary in all cases, though in some matters, depending upon the nature of the case, not only full-fledged oral hearing but even cross-examination of witnesses is treated as a necessary concomitant of the principles of natural justice. Likewise, in service matters relating to major punishment by way of disciplinary action, the requirement is very strict and full-fledged opportunity is envisaged under the statutory rules as well. On the other hand, in those cases where there is an admission of charge, even when no such formal inquiry is held, the punishment based on such admission is upheld. It is for this reason, in certain circumstances, even post-decisional hearing is held to be permissi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot on account of the denial to him of the report, has to be considered on the facts and circumstances of each case. Where, therefore, even after the furnishing of the report, no different consequence would have followed, it would be a perversion of justice to permit the employee to resume duty and to get all the consequential benefits. It amounts to rewarding the dishonest and the guilty and thus to stretching the concept of justice to illogical and exasperating limits. It amounts to an unnatural expansion of natural justice which in itself is antithetical to justice. * * * * 44. At the same time, it cannot be denied that as far as courts are concerned, they are empowered to consider as to whether any purpose would be served in remanding the case keeping in mind whether any prejudice is caused to the person against whom the action is taken. This was so clarified in ECIL itself in the following words : (SCC p. 758, para 31) 31. Hence, in all cases where the enquiry officer s report is not furnished to the delinquent employee in the disciplinary proceedings, the courts and tribunals should cause the copy of the report to be furnished to the aggrieved employee if he has not already se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rable beyond doubt that the result would have been different. Lord Woolf in Lloyd v. McMahon has also not disfavoured refusal of discretion in certain cases of breach of natural justice. The New Zealand Court in McCarthy v. Grant however goes halfway when it says that (as in the case of bias), it is sufficient for the applicant to show that there is real likelihood not certainty of prejudice . On the other hand, Garner s Administrative Law (8th Edn., 1996, pp. 271-72) says that slight proof that the result would have been different is sufficient. On the other side of the argument, we have apart from Ridge v. Baldwin , Megarry, J. in John v. Rees stating that there are always open and shut cases and no absolute rule of proof of prejudice can be laid down. Merits are not for the court but for the authority to consider. Ackner, J. has said that the useless formality theory is a dangerous one and, however inconvenient, natural justice must be followed. His Lordship observed that convenience and justice are often not on speaking terms . More recently, Lord Bingham has deprecated the useless formality theory in R. v. Chief Constable of the Thames Valley Police Forces, ex p Cotton by givi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e calculating the Penalty, the Cess payable under different statutes should not have been taken into consideration. Therefore, the Collector Stamps, Sidhi is directed to recalculate the Penalty by excluding the Janpad Cess and Upkar Cess. Conclusion 86.(a) Since, the instrument i.e., order dated 2-3-2017 passed by the NCLT, Allahabad was received in State of M.P. on 29-6-2017, therefore, the cap of Rs. 25 Cr. is not available to the Petitioners, as the same was notified by the State by notification dated 3-7- 2017; (b) No Stamp Duty is payable on the movable assets of the Petitioner Company ; (c) Upkar Cess @ 10% is payable on the stamp duty; (d) Janpad Cess @ 1% is payable on the value of the immovable properties; (e) Penalty is payable on the Stamp Duty and not on Upkar Cess and Janpad Cess. 86. For the reasons mentioned above, the Petition filed by the Petitioners is partially allowed and the Stamp Duty fixed/ascertained by the Collector of Stamps, Sidhi @ 5% on the value of immovable assets is upheld; the Upkar Cess @ 10% on stamp duty is also upheld; Janpad Cess @ 1% on the value of the immovable property is also affirmed. However, the Stamp Duty on the movable assets is hereb ..... X X X X Extracts X X X X X X X X Extracts X X X X
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