YASHWANT VARMA,J. - (1.) Heard learned counsel for the petitioner and the learned Standing Counsel.
(2.) The instant writ petition assails the orders passed by the respondents in proceedings initiated against the petitioner under Section 47-A of the Indian Stamp Act 1899 ('The Act'). The issue itself arises consequent to the execution of an agreement to sell on 31 May 1993 in favour of the petitioner. The aforesaid agreement to sell was followed by a sale deed being executed on 31 January 1994. The respondents, however, drew proceedings under Section 47-A of the Act holding the petitioner liable to pay additional stamp duty on the original agreement to sell which had been executed. Article 23 as appearing in Schedule 1-B prescribes the stamp duty payable on conveyances. It appears that the respondents proceeded in the matter on the basis of of Article 23 as it stood in its amended form after the promulgation of U.P. Act No. 22 of 1998 and more particularly the Explanation which came to be introduced pursuant thereto. Article 23, as it existed on the date of execution of the agreement to sell, namely 31 May 1993, carried no Explanation. This position is not disputed by the respondents.
(3.) By virtue of U.P. Act No. 22 of 1998 an Explanation came to be appended to Article 23 which reads thus:- "For the purposes of this Article, in the case of an agreement to sell an immovable property, where possession is delivered before the execution or at the time of execution, or is agreed to be delivered without executing the conveyance, the agreement shall be deemed to be a conveyance and stamp duty thereon shall be payable accordingly: Provided that the provisions of Section 47-A shall mutatis mutandis apply to such agreement: Provided further that when conveyance in pursuance of such agreement is executed, the stamp duty paid on the agreement shall be adjusted towards the total duty payable on the conveyance.";