Rakesh Kumar Jain, J. - (1.) The petitioners are the sons of Ajmer Singh, who executed a transfer/release deed No. 9576 dated 27.11.2007 in their favour of his land measuring 41 bighas 15 biswas situated in Village Seona, Tehsil and District Patiala. After the registration of the transfer deed, reference was made by the Sub -Registrar, Patiala on 6.12.2007 to the Collector on the ground that since the land in question is situated within the area of 5 KMs from the Municipal Limits of Patiala, therefore, the petitioners are liable to pay 3% additional Stamp Duty in terms of Sec. 3 -C of the Indian Stamp Act, 1899 [for short 'the Act']. The Collector after hearing the petitioners passed the order on 15.1.2008 which was challenged by the petitioners by way of a statutory appeal before the Divisional Commissioner, Patiala [hereinafter referred to as 'the Commissioner'], which was allowed on 8.7.2008, order of the Collector was set aside and the matter was remanded back to the Collector to decide the same again. The Collector passed the order on 11.5.2010 holding the petitioners liable to pay additional Stamp Duty in terms of Sec. 3 -C of the Act. Aggrieved against the said order, the petitioners again filed statutory appeal before the Commissioner, which was also dismissed vide order dated 16.2.2012 and hence, the present petition has been filed.
(2.) Learned counsel for the petitioners has submitted that the additional Stamp Duty can be charged on an instrument if it is chargeable with duty and the instrument chargeable with duty is defined under Sec. 3 of the Act, as per which the documents, which are chargeable with duty having exemption contained in Schedule I. The case of the petitioners is that the exemption is granted in terms of Sec. 9 of the Act as per which the State Government has issued a notification on 21.12.2001 exempting the imposition of Stamp duty in case where the property is transferred to Class -I heirs. It is further submitted that entry No. 23 of Schedule 1 -A (for Punjab) deals with the conveyance as defined in Sec. 2(10) of the Act, which includes every instrument by which the property, whether immovable or immovable, is transferred between the inter vivos and which is not otherwise specifically provided by Schedule -I or Schedule I -A.
(3.) Learned counsel for the respondents, however, submits that the land in question was situated within 5 KMs of the Municipal Limits, which was of the value of Rs. 1,73,96,000/ - as mentioned in the deed itself and as per the Government letter No. 13/9/2004 -ST -II/1233 dated 2.3.2005, the petitioners are liable to pay additional Stamp Duty @ 3% which comes to Rs. 5,21,880/ -, which was accordingly being charged and the said order has been upheld by the Collector.;