FULLERTION INDIA CREDIT COMPANY LTD. Vs. STATE OF MAHARASHTRA AND ORS.
LAWS(SC)-2016-10-72
SUPREME COURT OF INDIA
Decided on October 07,2016

Fullertion India Credit Company Ltd. Appellant
VERSUS
State of Maharashtra And Ors. Respondents

JUDGEMENT

- (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.;


Click here to view full judgement.
Copyright © Regent Computronics Pvt.Ltd.