- (1.) The petitioners challenge recovery of stamp duty collected on value of the property at the time of registration and not the value as fixed when the original allotment was made. Admittedly in this case, the petitioner had been allotted property by a State Functionary in the year 1984 and the last date of installment was 17.2.2005 when the document of sale was also executed. It was subsequently brought for registration on 26.4.2005 on the value as stated in the document worked on the basis of the installments paid by the petitioner to the owner of the property.
(2.) The contention of the State is that the stamp duty for registration shall be done only on the valuation of the property on the date of the sale and the date of registration and not the value as originally fixed in the year 1984. Dealing with this situation the counsel for the State relies on a decision of this Court in Sukhjit Singh Cheema, Advocate v. Punjab Urban Planning and Development Authority, Chandigarh and others, 2008 152 PunLR 484 that held that the stamp duty will be calculated on the basis of value of the property at the date of registration of instrument and not as per original sale consideration recited in the letter of allotment. The Bench was dealing with this situation making a reference to Rule 3-A of Punjab Stamp (Dealing of Undervalued Instruments) Rules, 1983 that empowered the State Government to determine the correct date in consultation with the committee of experts. The Bench ruling was as follows: Though the sale consideration mentioned in the letter of allotment or such like document cannot be disputed but what would be proper stamp duty is required to be determined in terms of Section 47-A of the Act which contemplates that it is the marked value of the property on the date of registration of the instrument. Therefore, irrespective of sale consideration in the letter of allotment, stamp duty would be payable on the market value of the property determined in terms of Rule 3-A of 1983 Rules prevalent at the time of registration of instrument. The Division Bench observed while concluding the judgment as follows: It is always open to the State Government to give concession in exercise of its executive power if such benefit does not contravene any provision of the Act or Rules framed there under. Since no argument has been raised in respect of the legality of circular dated 3.6.2008, we are not examining the legality of such circular. However, all instruments of sale presented for registration after the enactment of Act No. 14 of 2001 and subsequent framing of Rules w.e.f. 23.8.2002, are required to be affixed with stamp duty in terms of the Collector's rate. What saves the day for the petitioner is that there has been a notification which is issued by the State on 15.12.2009 that reads as follows: In exercise of the powers conferred by Section 47-A and 75 of the Indian Stamp Act, 1899 (Central Act No. 2 of 1989) and all other powers enabling him in this behalf, the Governor of Punjab is pleased to make the following rules further to amend the Punjab Stamp (dealing of Under-Valued Instruments) Rules, 1983, namely Rules 1. These rules may be called the Punjab Stamp (dealing of Under-Valued Instruments) (fifth amendment) Rules 2009. 2. In the notification issued - vide No. 16/1/2009 mentioned as 31st December, 2009 may be substituted as 31st March, 2009. Notification dated 28.5.2009 In exercise of the powers conferred by Section 47A and 75 of the Indian Stamp Act, 1899 (Central Act No. 2 of 1899) and all other powers enabling him in this behalf, the Government of Punjab is pleased to make the following rules further to emend the Punjab Stamp (Dealing of Under-Valued Instruments) Rules, 1983, namely 1. These rules may be called the Punjab Stamp (dealing of Under-Valued Instruments) (second amendment) Rules 2009. 2. In the Punjab Stamp ((Dealing of Under-Valued Instruments) Rules, 1983, in rule 3-A for the existing explanation inserted vide notification No. 16/1/2009-STH 1872 dated 2nd March, 2009, the following explanation shall be deemed to have been substituted with effect from 2nd March, 2009 Explanation: The consideration amount fixed at the rate of allotment of immovable property any Government, Semi Government Organization may be deemed to be Collector's rate and stamp duty shall be charged for registration of document upon the consideration amount fixed by the Government/Semi Government Organization, provided that document is got registered by the original allottee up to 2nd September, 2009 from issue of this notification or within three months from the payment of last regular instalment as per schedule of payment of such allotment.
(3.) This benefit obtains to all instruments which could have been brought for registration and considered within three months from the payment of last regular installment or registrations made upto 2.9.2009. This document was presented for registration before 2.9.2009 and therefore the petitioner is entitled to the benefit of this notification. The action for recovery on the basis of valuation at the time of registration shall stand quashed and the respondent shall register the document on the valuation as found in the instrument being the value of the property that was determined at the time of allotment.;