- (1.) Heard learned Standing Counsel for the petitioner-State and learned Counsel for the respondents. Normally in stamp deficiency matters sellers/purchasers file writ petitions, however, this writ petition has been filed by the State. Respondents purchased 1588.62 (or 1658.58) sq. meter land through sale-deed which was presented for registration on 6.2.2003. The purchased property contained a Cinema Hall situate on Ambala Road, Saharanpur. The sale consideration shown in the sale-deed, was Rs. 35/- lac and stamp duty of Rs. 3.5 lac was paid. The Sub-Registrar where the sale-deed was presented for registration was of the opinion that it was insufficiently stamped hence he referred the original sale-deed to the Collector Stamp under section 47A(1) of Stamp Act. The matter was registered as case No. 316/531 of 2002-03 on the file of Deputy Commissioner Stamp, Saharanpur. Objections were filed by the respondents contending that they had paid stamp duty in accordance with the circle rate and the construction was about 100 years old. A committee of three officers was appointed. Each member gave separate report regarding valuation. Copies of reports are Annexures 4, 5 and 6 to the writ petition. Deputy Commissioner Stamp decided the matter on 19.2.2004 holding that the market value was Rs. 3,22,25,000/-. Through order dated 19.2.2004 Rs. 28,72,500/- was determined as deficiency in stamp duty. Rs. 5,60,000 and odd as 13 months interest. Rs. 1,67,000/- and odd as penalty total amount Rs. 36,00,000/-.
(2.) The three officers who had been appointed to inspect the property had given different valuations. Through Annexures-4 and 5 valuation was determined to be Rs. 1 crore if the property was used as cinema hall otherwise Rs. 2 crore if it was used for commercial purposes. However, the third officer i.e., Deputy Registrar in his report Annexure-6 had mentioned the valuation to be Rs. 3,23,17,266/-. Against the order dated 19.2.2004 respondents filed revision being stamp revision case No. 4 of 2004-2005. C.C.R.A./Board of Revenue, Allahabad allowed the revision in part through order dated 17.2.2005. The Re-visional Court held that an area of 500 sq. meters which abutted Ambala road should be valued @ of Rs. 5720/- per sq. meter and remaining area of 1150.58 sq. meter @ Rs. 3575 per sq. meter as per circle rate fixed by the Collector for non-commercial purposes as it was situate on only 12 feet wide road. Thus market value of the land came to Rs. 69,70,322. The 'ruined and dilapidated structure' was valued at Rs. 7,94,668/- (total valuation Rs. 77,64,990). Ultimately it was held that proper stamp duty payable was Rs. 7,76,499. Rs. 3,50,000/- stamp duty had already been paid on the sale-deed. Accordingly, respondents were directed to pay Rs. 4,26,499 more as deficiency in stamp duty.
(3.) The Deputy Commissioner Stamp in its order dated 19.2.2004 had held that the building was about 60 years old, however, it held that in view of Rule 5 of Stamp Rules of 1997 no depreciation was permissible in the building. Accordingly, it calculated the market value of the construction to be Rs. 48,00,000/- according to the rate fixed by the D.M. for the new construction. This view was utterly erroneous in law. In, Ram Khilawan v. State of U.P., 2005 98 RevDec 511I have held that Rules of 1997 are meant only to initiate the proceedings, however, while deciding the case matter has to be decided on the basis of the same principles which are applied while deciding the market value for the purposes of compensation under land acquisition Act. In any case determining market value of old super structure treating that to be recently made is preposterous.;