N.K.MEHROTRA, J. - (1.) THIS is writ petition under Article 226 of Constitution of India for a writ of certiorari declaring Indian Stamp (U. P. Second Amendment) Act, 1997 (U. P. Act No. 23 of 1998 passed by the State Legislature as ultra vires and for a mandamus directing the respondents not to realize the stamp duty on the basis of the amendment made in the Indian Stamp Act and further to renew the licence of the petitioners forthwith, without compelling them to deposit stamp duty on renewal of their licence.
(2.) THE State Legislature has amended Indian Stamp Act, 1899 in its application to Uttar Pradesh by Indian Stamp Act (Uttar Pradesh 2nd Amendment) Act, 1997 (Act No. 23 of 1998) by inserting a new Article 38A in Schedule 1 -B to the Indian Stamp Act, 1899. Article 38A provides for imposition of Stamp Duty on the document evidencing the licence or renewal of licence relating to arms or ammunitions under the provisions of the Arms Act. 1959 (Act No. 54 of 1959) which are as follows : (A) Licence relating to following arms : (i) Revolvers or pistols Two thousand rupees (ii) Rifles One thousand five hundred rupees. (iii) D.B.B.L. Weapons One thousand rupees. (iv) S.B.B.L. Weapons One thousand rupees. (v) M.L. Weapons Two hundred rupees. (B) Licence relating to arms or ammunitions on following Formsas set out in Schedule III to the Arms Rules. 1962 : (i) Form XI Ten thousand rupees. (ii) Form XII Ten thousand rupees. (iii) FormXIII Five thousand rupees. (iv) Form XIV Three thousand rupees. (C) Renewal of licence relating to following arms : (i) Revolvers or pistols One thousand rupees (ii) Rifles Ten thousand rupees. (iii) D.B.B.L. Weapons Five hundred rupees. (iv) S.B.B.L. Weapons Five hundred rupees. (v) M.L. Weapons One hundred rupees. (D) Renewal of licence relating to arms or ammunitions onfollowing Forms as set out in Schedule III to the Arms Rules, 1962 : (i) Form XI Three thousand rupees. (ii) Form XII Three thousand rupees. (tit) Form XIII Two thousand rupees. (iv) Form XIV One thousand rupees. It is the aforesaid amendment, the vires of which is challenged in this writ petition.
(3.) THE case of the petitioners is that 7th Schedule of the Constitution of India contains the lists indicating the jurisdiction of the Parliament and the State Legislature in the field of legislation. List -1 is the 'Union List' over which the Parliament has exclusive legislative competence. Entry -5 of the aforesaid Union List covers 'Arms, Fire -arms, ammunitions and explosives.' It is contended that the Parliament has enacted the Arms Act, 1959 which is applicable to entire country and no State Legislature has jurisdiction to enact any law pertaining to the aforesaid Entry. The Arms Act, 1959 confers privilege upon such person to have in their possession or carry fire -arms or ammunitions if, such person holds a licence issued in accordance with the provisions of the Act and rules made thereunder. Further, the Arms Act, 1959 provides for licence for manufacture, sale, repairs, etc. of arms and ammunitions and the conditions have been laid down under Section 5 of the Arms Act. Section 13 of the Arms Act lays down condition for grant of licence and Section 16 provides for fees, etc. for the licence. Sub -section (j) of Section 2 of the Arms Act defines 'licensing authority' and it means an officer or authority empowered to grant or renew licences under rules made under the Anns Act. Further, it is evident from the provisions of the Arms Act and rules framed thereunder that the Parliament has clearly provided fees for which the licence is to be granted to individual as well as to dealers and Section 13 of the Act states the conditions and fees to be imposed for grant of licence or for its renewals meaning thereby the State Legislature did not have any authority nor legislative competence to make any amendment in the Arms Act directly or indirectly or to impose any condition for grant of licence or its renewal. It is averred that by impugened amendment in the Stamp Act, the Legislature by inserting Article 38A to Schedule 1B to Stamp Act has laid down conditions for grant of licence of arms and their renewal, meaning thereby no licence shall be granted in the State of Uttar Pradesh or renewed until and unless the licence granted or to be renewed have to pay the stamp duty as imposed by the impugned amendment Act. It is further contended that such of the condition is indirectly encroaching upon the domain of the Union as the State Legislature has imposed a condition precedent for grant of licence, which otherwise, the State Legislature is incompetent to do so. The Government of India in exercise of its power under Section 16 of the Act and Rule 4 of the Arms Rules framed thereunder have prescribed fee for grant of licence for Arms to individual and to dealers also. According to the petitioners, the other State Governments have not imposed any stamp duty for registration of licence or their renewal, granted under the Arms Act, 1959. It is further contended that the State Legislature is competent to amend the Stamp Act but the State Legislature cannot encroach upon the domain of the legislative competence of the Parliament directly or indirectly by passing impugned amendment Act. The State Legislature has encroached upon the domain of the Parliament by prescribing the fees for grant of licence or renewal thereof. The petitioners are arms dealers in district Bijnor. Their licence expired on 31.12.2000 and the District Magistrate has refused to renew the licence without depositing the stamp duty as required under impugned amended Stamp Act. It is alleged that the impugned amendment made in the Indian Stamp Act is ultra vires of the Constitution.;