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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 ..... d its 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ved 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. 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 d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ollowing relief(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 i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Secretary, Govt. of Madhya 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 N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Rs. 123,05,32,500/- @ 5% on immovable 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, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ucial date of bringing the instrument within the 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 Rajast ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... edy of filing a revision under Section 56 of Indian Stamp 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 p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llowed in a future suit or proceeding between the same parties to canvass the matter again. This principle of res judicata 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-Judicat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... provided in Section 76 of the Indian Evidence Act. 35. Section 77 of Indian Evidence Act reads as under : Proof of documents by production 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. Accordin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ible for any legislature to anticipate as if by some divine prescience, distortions and abuses of its legislation which may be made by those subject to its provisions 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o submit copies of orders passed by NCLT Mumbai and Allahabad 13. 5-8-2019 Petitioner No.1 submitted the copies of the orders of NCLT Mumbai and Allahabad along with other documents 14. 23-1-2020 DIG Registration directed 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 NCL ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sale or a conveyance by way of purchase and sale, can be, or is, carried out without an instrument, the case would not fall within the section and no tax can be imposed. Taxation is confined to the instrument by which the property is transferred legally and equitably 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. 142d-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 perfec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tipulation that the tenant would not sub-let the premises without the written consent of the landlord. After sanctioning of the scheme for amalgamation by the Court, the tenanted premises came to be transferred to the transferee company. The landlord filed the eviction suit. 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 makin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat "this decree does operate as the conveyance from the defendants in favour of the plaintiffs in respect of the said property more particularly described in Exhibit A to the plaint". The Court held that: (SCC p. 535, para 11) "11. There is no particular pleasure in 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, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l Provinces and Berar Indian Stamp (Amendment) Act, 1939 and relates to any property situated or to any matter or thing done or to be done, in Madhya Pradesh and is received in Madhya Pradesh. Provided further that no duty shall be chargeable in respect of,-- (1) any instrument executed by, or on behalf of, or in favour 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), ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n Madhya Pradesh under Section 3(bb) of the first proviso to section 3, then the amount of duty chargeable on such instrument shall, notwithstanding any thing contained in the first proviso to section 3, be the amount chargeable on it under Schedule 1-A, less the amount of duty, if any, already paid on it in India. The Supreme Court in the case of New Central 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oner submitted that infact the date of receipt of instrument in State of M.P. was 5-8-2019, although in the reply to the Show Cause Notice as well as in the Writ Petition, the Petitioner has claimed that the relevant date is 24-10-2017. Although a very weak attempt was made by Counsel for the State that the relevant date would be 29-6-2017, but thereafter, the State Counsel, changed 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ely, he/it was accepted all the conditions and liabilities which the transferor was having in respect of such mining lease." Clearly petitioner has been using the NCLT order for executing deeds much before their letter to Principal Secretary." 62. For the reasons best known to the State, the aforementioned documents have not been placed on record. However, an equally vague reply was given by the Petitioners in their 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 All ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as well as English courts is that 'all statutes other than those which are merely declaratory or which relate only to matters of procedure or of evidence are prima facie prospective and retrospective operation should not be given to a statute so as to affect, alter or destroy an existing right or create a new liability or obligation unless that effect cannot be avoided without doing violence to the language of the enactment. If 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... utants of attorney and the person in whose favour it is executed, the duty on the sale deed shall be the duty payable under the article less the duty already paid, subject to a minimum of Rs. 1000. (e) Where a mortgage deed or an agreement to mortgage is stamped with ad-valorem duty required for a mortgage under article 43 and a court decree in pursuance of a suit filed against the mortgaged property, or a mortgage deed is executed, the duty payable 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Vidyut Vitaran Company Jabalpur, Bhopal, and Indore for obtaining single-point metered electricity connection. 3. On instruments executed by agriculturists in favour of Banks for securing loans under the Kisan Credit Card Scheme. 4. On instrument executed by Self Help Groups in favour of banks for securing loans upto Ten Lakh Rupees for economic development of group members under the NABARD sponsored schemes. 5. Stamp duty is exempted on instruments executed by herbal or ayurved based 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. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... esh 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, 7. On instruments of equitable mortgage/hypothecation executed by a new unit/expanded unit/ modernized unit of an Information Technology' Business Process Outsourcing company for obtaining loans from banks/ financial institutions in Information Technology investment area, subject to the 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 Proc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r, subject to following conditions, namely :-- (a) the chargeable stamp duty shall be exempted /reduced to the extent of 100 percent, 50 percent and 25 percent for the categories, of house/ apartment of Economically Weaker Section, Low Income' Group and Middle Income Group respectively, but no exemption/reduction shall be granted in cases of High Income Group houses/apartments; (b) this exemption/reduction shall be limited only to original allottees under the Self Financing Scheme, (c) economically Weaker Sections, Low Income Group and Middle 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he date of registration of the instrument. CERTIFICATE No... Dated………. Certified that land having area……. Hectare of Shri ………R/o Village…….. Tehsil……… District Dhar has been acquired for Auto Testing Track Project, Peethampur, District Dhar, for which the amount of compensation and special rehabilitation grant paid is as under :- Compensation Amount - Amount of Special rehabilitation grant - Total - 2. This certificate shall be applicable for granting exemption of stamp duty on deed of sale of land having area……………. hectare situated at Village………………. executed by Shri……………… S/o Shri………………. in favour of 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f Urban Development and Environment 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 instruments of lease of residential house is executed under the Basic Service For Urban Poor (B.S.U.P)/Integrated Housing and Development Program(I.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 Ka Pradan Kiya Jana) Adhiniyam, 1984 from the Government on the sites under construction by the said agencies. 11. Instruments of conveyance relating to conversion of lease hold rights into freehold rights of private or nazul land executed by or on behalf of the Government or a Semi-Government Organization or any Government undertaking or Housing Co-operative Society established or registered under any law for the time being in force, shall be chargeable in reduction to the extent only on the amount of consideration paid for 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ten Lakhs rupees when the amount chargeable exceeds that amount. This reduction in duty shall be applicable subject to the conditions that-- (a) the said instrument is executed for better capacity utilization of the industry, (b) the production of the industry in any three of the immediately preceding five years has not exceeded 50 percent of the installed capacity, (c) any bank or financial institution which has extended loan to the industry has considered its loan as non-performing asset for immediately preceding two years, (d) the net worth of the industry has been reduced to less than one half of its net worth immediately preceding five years ago; and (e) a certificate to the effect that the instrument is eligible for concession under this notification is issued by the Collector of the concerned District in cases where the sale price of the industry does not exceed rupees One Crore and by the Commissioner of the concerned division in other cases. Note--The exemption under this notification shall be applicable only till the Madhya Pradesh Industrial Promotion policy 2010 as amended 2012 or Madhya Pradesh Industrial Promotion Policy, 2014 and its work-plan remains in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ollector shall deposit the amount of reimbursement in account head "0030 Stamps and Registration" within one month from the date of receipt of demand; and (d) the exemption on stamp duty shall be valid only for two years from the date of payment of compensation and rehabilitation grant. 17. On instruments of sale 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; (b) the agricultural land and/ or other immovable property is purchased by the displaced person any where in the State of Madhya Pradesh during the process of rehabilitation; (c) the position in clause (a) and (b) above is expressed in the instrument of transfer itself; (d) the eligibility of exemption shall be limited to the amount of Stamp duty charge ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (b) the lands being exchanged are approximately of equal market value; (c) the lands being exchanged shall not be Nazul or extra-Nazul agricultural lands; (d) the lands being exchanged are situated within the same Revenue Inspector Circle; and (e) provision shall not be misused for evading Ceiling on agricultural land. 12 Article-35- Further Charge 1. On instruments of further charge without possession executed in favour of banks for securing Joan up to ten lakh rupees 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 up to any limit in case of a person belonging to Scheduled Castes and Scheduled Tribes. 2. On instruments executed by agriculturists in favour of Banks for securing loans under the Kisan Credit Card Scheme. 13 Article-36- Gift 1. On instrument of gift executed in favour of the State Government. 2. On instruments of gift of land executed in favour of a Goshala registered by the Madhya Pradesh Gopalan Evam Pasbudhan Samwardhan Board, Bhopal. 3. On instruments of gift of Agricultural land executed by a person belonging to Scheduled Tribe i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 operation of the Madhya Pradesh Information Technology Investment Policy 2012, as amended in 2014 or the Madhya Pradesh Business Process outsourcing/ Business Process Management (Business Process Outsourcing/Business Process Management) Industry Investment Policy, 2014, remains. 8. On instruments of amendment of lease executed by the Commerce, Industries and Employment Department of Madhya Pradesh or Madhya Pradesh Audyogik Kendru Vikas Nigam in favour of herbal or ayurved based industry due to change of name of the industry, addition of a partner partners, collaboration or its reconstruction, subject to the following conditions, namely:- (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 is issued by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce, no exemption in any case shall he granted again; (b) 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 in 2012 or the Madhya Pradesh Industrial Promotion Policy. 2014 and its work plan has taken a decision to remit the stamp duty. (c) to obtain remission, the lessee of the unit shall have to produce a scheme for revival of the unit before the Competent Authority explaining his financial position. Also the lessee shall give an undertaking before the Competent Authority that he shall revive the industry within eighteen months and in case of violation, he shall pay the amount of stamp duty remitted along with an interest at the simple rate of 0.75 percent for every month or part thereof from the date of execution of the instrument. For revival he shall be entitled to use the option of diversification of the product; and (d) the remission shall be subject to the certificate of Compe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the rehabilitation place, shall also be entitled for the said exemption. 13. On lease executed in case of a cultivator and for the purposes of cultivation (including a lease of uses for the production of food or drink) without the payment or delivery of any fine or premium, when a definite term is expressed and such term does not exceed one year of when the average annual rent reserved does not exceed one hundred rupees. 14. Stamp duty chargeable under this article is reduced to rupees one thousand on agreements executed by a State Government Undertaking giving right to collect tolls on construction of road, bridge etc. under the Build, Operate and Transfer (B.O.T.) Scheme. 16 Article-43 Mortgage deed 1. On instrument of conveyance 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. 2. On instruments of mortgage executed by unemployed engineers to secure loans upto One Lakh Rupees from Madhya Pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... than rupees Five Lakh and it shall not come in category of service or trade; (b) the entire loan amount shall be spent for the development of the industry in the State of Madhya Pradesh, and (c) a certificate of eligibility to the effect that the industry obtaining the loan is eligible for the remission or reduction of stamp duty, it to be issued by the Commissioner Commerce, Industries and Employment, Madhya Pradesh. 7. On instruments of mortgage without possession executed by a new unit expanded unit modernized unit of an information Technology/ Business Process Outsourcing company certified to be an information technology Business Process Outsourcing outfit by Information Technology Department or any designed agency notified by them under the Madhya Pradesh Information Technology Investment Policy 2012 as amended in 2014 or the 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 he applicable only till the operation of the Madhya Pradesh Information Technology Investment Policy 2012 as amended 2014 or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ables items included in Annexure-3 of the Madhya Pradesh Food Processing Policy, 2008 as raw material or for the expansion, diversification or modernization of such industry in the State of Madhya Pradesh. 14. Instrument executed by persons taking advances under the Land Improvement Loans Act, 1883 (19 of 1883) or the Agriculturist's Loans Act, 1884 (12 of 1884) or by their sureties as security for the repayment of such advances. 17 Article-46- Note or Memorand Um On Note or Memorandum send by a broker or agent to his principal intimating the purchase or sale on account of such principal or a Government Security or a share, scrips, stock, bond, debenture, debenture-stock or other marketable security of like nature in or of any incorporated company or other body corporate, an-entry relating to which is required to be made in clearance lists described in clauses (a) and (b) of article 22. 18 Article-48- Partition 1. On deeds of partition of agricultural land between joint khatedars the chargeable stamp duty shall be remitted under following conditions, namely -- (a) There is neither any dispute nor any case pending in any court regarding the land to be partitioned; and (b) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 10 of 1949) ; (b) the State Bank of India, constituted under the State Bank of India Act, 1955 (23 of 1955); (c) a Subsidiary Bank as defined in the State Bank of India (Subsidiary Banks) Act, 1959 (38 of 1959); (d) a corresponding new bank constituted under the Banking Companies (Acquisition and Transfer of Undertaking) Act, 1970 (5 of 1970); (e) the Madhya Pradesh State Agro Industries Development Corporation Limited, Bhopal; (f) Agricultural Finance Corporation Limited, a company incorporated under the Companies Act, 2013 (18 of 2013); (g) a Regional Rural Bank established under sub-section (1) of Section 3 of Regional Rural Bank Act, 1976 (21 of 1976); (h) a Central Development Bank within the meaning of clause (b) of Section 2 of the Madhya Pradesh Sahakari Bhoomi Vikas Bank Adhiniyam, 1966 (28 of 1966) or a Development Bank within the meaning of clause (d) of Section 2 of the said Act; and (i) the Agricultural Refinance Corporation constituted under the Agricultural Corporation Act, 1963 (10 of 1963). 2. "Financial institution includes (a) Madhya Pradesh Finance Corporation; (b) Madhya Pradesh Audyogic Vikas Nigam; (c) a banking company as defined in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... expect the subject matters referred to in clause (b) of subsection (1); the Central Government; (b) save as aforesaid, the State Government." 72. 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 can be charged on movable properties. Therefore, the stamp duty imposed by the Collector of Stamps, Sidhi, on the movable properties of the Petitioner No.1 is bad in law and is hereby quashed. Whether Upkar Cess @ 10% is chargeable on stamp duty 73. None of the parties have disputed the fact that Upkar Cess is chargeable on the stamp duty @ 10%. Therefore, imposition of Upkar Cess @ 10% on stamp duty is hereby affirmed. Whether the Janpad Cess @ 1% is payable on the value of immovable assets or on Stamp Duty? 74. It is the case of the Petitioner, that in the light of the notifications dated 6-10-2018 and 25-8-2020, Janpad Cess @ 1% is chargeabl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is only if the Court or Tribunal finds that the furnishing of the report would have made a difference to the result in the case that it should set aside the order of punishment. In other words, the Court reiterated that the person challenging the order on the basis that it is causing civil consequences would have to prove the prejudice that has been caused by the non-grant of opportunity of hearing. In the present case, we must hasten to add that, in the letter dated 4-5-2006, the appellants have not made a request for being granted an opportunity of personal hearing. Therefore, the ground with regard to the breach of rules of natural justice clearly seems to be an afterthought." 82. The Supreme Court in the case of Chairman, State Bank of India and another Vs. M.J. James reported in (2022) 2 SCC 301 has held as under:- "31. In State of U.P. v. Sudhir Kumar Singh referring to the aforesaid cases and several other decisions of this Court, the law was crystallised as under : (SCC para 42) "42. An analysis of the aforesaid judgments thus reveals: 42.1. Natural justice is a flexible tool in the hands of the judiciary to reach out in fit cases to remedy injustice. The breach of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f natural justice. We are not addressing ourselves with this connotation of natural justice here. 21. In Common Law, the concept and doctrine of natural justice, particularly which is made applicable in the decision-making by judicial and quasi-judicial bodies, has assumed a different connotation. It is developed with this fundamental in mind that those whose duty is to decide, must act judicially. They must deal with the question referred both without bias and they must give (sic an opportunity) to each of the parties to adequately present the case made. It is perceived that the practice of aforesaid attributes in mind only would lead to doing justice. Since these attributes are treated as natural or fundamental, it is known as "natural justice". The principles of natural justice developed over a period of time and which is still in vogue and valid even today are : (i) rule against bias i.e. nemo debet esse judex in propria sua causa; and (ii) opportunity of being heard to the party concerned i.e. audi alteram partem. These are known as principles of natural justice. To these principles a third principle is added, which is of recent origin. It is the duty to give reasons in supp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The ultimate test is always the same viz. the test of prejudice or the test of fair hearing. 41. In ECIL, the majority opinion, penned down by Sawant, J., while summing up the discussion and answering the various questions posed, had to say as under qua the prejudice principle : (SCC pp. 756-58, para 30) "30. Hence the incidental questions raised above may be answered as follows: * * * (v) The next question to be answered is what is the effect on the order of punishment when the report of the enquiry officer is not furnished to the employee and what relief should be granted to him in such cases. The answer to this question has to be relative to the punishment awarded. When the employee is dismissed or removed from service and the inquiry is set aside because the report is not furnished to him, in some cases the non-furnishing of the report may have prejudiced him gravely while in other cases it may have made no difference to the ultimate punishment awarded to him. Hence to direct reinstatement of the employee with back wages in all cases is to reduce the rules of justice to a mechanical ritual. The theory of reasonable opportunity and the principles of natural justice have ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stice nor a denial of the reasonable opportunity. It is only if the court/tribunal finds that the furnishing of the report would have made a difference to the result in the case that it should set aside the order of punishment." 84. The Supreme Court in the case of Canara Bank and others v. Debasis Das and others reported in (2003) 4 SCC 557 has held as under:- "22. What is known as "useless formality theory" has received consideration of this Court in M.C. Mehta v. Union of India. It was observed as under : (SCC pp. 245-47, paras 22-23) "22. Before we go into the final aspects of this contention, we would like to state that cases relating to breach of natural justice do also occur where all facts are not admitted or are not all beyond dispute. In the context of those cases there is a considerable case-law and literature as to whether relief can be refused even if the court thinks that the case of the applicant is not one of 'real substance' or that there is no substantial possibility of his success or that the result will not be different, even if natural justice is followed see Malloch v. Aberdeen Corpn. (per Lord Reid and Lord Wilberforce), Glynn v. Keele University, Cinnam ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er than those relating to admitted or indisputable facts, there is a considerable divergence of opinion whether the applicant can be compelled to prove that the outcome will be in his favour or he has to prove a case of substance or if he can prove a 'real likelihood' of success or if he is entitled to relief even if there is some remote chance of success. We may, however, point out that even in cases where the facts are not all admitted or beyond dispute, there is a considerable unanimity that the courts can, in exercise of their 'discretion', refuse certiorari, prohibition, mandamus or injunction even though natural justice is not followed. We may also state that there is yet another line of cases as in State Bank of Patiala v. S.K. Sharma, Rajendra Singh v. State of M.P. that even in relation to statutory provisions requiring notice, a distinction is to be made between cases where the provision is intended for individual benefit and where a provision is intended to protect public interest. In the former case, it can be waived while in the case of the latter, it cannot be waived. 23. We do not propose to express any opinion on the correctness or otherwise of the 'useless formal ..... X X X X Extracts X X X X X X X X Extracts X X X X
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