FULLERTION INDIA CREDIT COMPANY LTD. Vs. STATE OF MAHARASHTRA AND ORS.
SUPREME COURT OF INDIA
Fullertion India Credit Company Ltd.
State of Maharashtra And Ors.
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(1.) The gravamen of the challenge in these matters is to the impugned amendments to the Maharashtra Stamp Act, 1958 vide Sections 10D and 30A,
imposing unreasonable and impracticable duties/obligations on the Banks
and Financial Institutions.
(2.) During the previous hearing, learned counsel appearing for the Banks and Financial Institutions, in all fairness, submitted that their clients
were not opposed to taking the responsibility of collection of the stamp
duty, but cannot be fastened with the additional duties/obligations as
predicated in the impugned enactment. In the backdrop of the stand taken
by the Banks and Financial Institutions, the State Authorities were asked
to examine the suggestions given by the Financial Institutions and to
work out an arrangement or devise which may facilitate collection of
proper stamp duty on the concerned document/instruments. Accordingly, a
joint meeting of the representatives of the banks and financial
institutions and of the officials of the State was convened in which it
has been agreed in principle between the parties that, by way of an
interim arrangement during the pendency of these matters, the banks and
financial institutions may presently levy and collect stamp duty in
respect of documents/instruments presented for registration henceforth to
give effect to Section 30A of the Maharashtra Stamp Act.
(3.) It is agreed in the joint meeting convened on 23rd September 2016 that, the implementation of Section 30A of the Act will be confined only
to documents/instruments in which bank is a party or which create a right
in favour of a bank. The banks must and would ensure that proper stamp
duty is paid in respect of such document/instrument as specified in the
Notification. To facilitate the banks to discharge that obligation, the
respondent-State has agreed to provide a software for calculating the
stamp duty commensurate with the provisions of the Stamp Act and which
can be paid by the Banks and Financial Institutions through Government
Receipt Accounting System (GRAS) online, credited in the State Treasury.
However, the Department would require some more time to roll out that
software. The proposed software will incorporate necessary features
keeping in mind the provisions of the Stamp Act to facilitate calculation
of proper Stamp Duty. The responsibility of the bank will be limited to
ensuring proper selection of type of document; and accuracy of the
information to be furnished in that behalf in the software. The
Bank/Financial Institution shall not be responsible for any inaccuracy in
the calculation of the amount of stamp duty done by the software. It is
also agreed that the use of software will be optional. On this
understanding, the Banks and Financial Institutions have assured the
discharge of their obligation to levy and collect proper stamp duty in
respect of prospective documents/instruments henceforth.;
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