HEMANT GUPTA,J. - (1.) This order shall dispose of Civil Writ Petition Nos. 11530 of 2005, 19922 of 2006; 18722 of 2007 and 4084 of 2008, wherein identical questions of law have been raised out of similar facts. In all these cases, the petitioners are the allottees or the purchasers from the State Government or one or other instrumentalities of the State of a piece of plot. Though the allotments were made some time past, but when the petitioners sought registration of the conveyance deed/title deed, the Sub Registrar has sought stamp duty on the basis of market value of the land at the time of registration of the documents. It is the case of the petitioners that such Stamp duty on market value has been claimed on the basis of a circular issued by the Department of Revenue and Rehabilitation (Stamp and Registration Branch), Chandigarh, which is to the following effect :- " Copy of letter No. 24/96/2001-ST-2/4593 dated 22.10.2002 from Department of Revenue and Rehabilitation (Stamp and Registration Branch) Chandigarh to the Deputy Commissioner (Collector) etc. Subject : Levy of Stamp Duty on instrument(s) of transfer/conveyance deed executed by the Punjab Urban Development Authority in favour of the allottees. I am directed to refer to the subject noted above and to say that Section 47-A (1) of the Indian Stamp Act, 1899, as amended vide notification No. 24 Leg/2001 dated 21.12.2001, inter alia, lays down that it the market value of any property which is the subject of any instrument on which duty is chargeable on market value as set forth in such instrument is less than even the minimum value as determined in accordance with the rules made under this Act, the Registering Officer appointed under the Registration Act,1908 shall after registering the instrument refer the same to Collector for determination of the market value of such property and the proper duty payable thereon.
(2.) THE Registering Officer have generally been complying with the provisions aforesaid while levying stamp duty on the instruments relating to the transactions of immovable property presented for registration by the public at large. However, it has come to the notice of the State Government that the same criteria is not being followed while registering the instruments executed by the Punjab Urban Development Authority in favour of the allottees. In such cases the price fixed by the PUDA at the time of original allotment of the property in question is being taken into consideration for the purpose of levying of stamp duty. This practice evidently is not in conformity with the aforesaid provisions of Section 47-A of the Act ibid. Moreover, the price of the land/ property as fixed by the PUDA at the time of the original allotment does not necessarily represent the actual market value prevailing at the time of registration of the conveyance deed. The action of Registering Officers to levy stamp duty on the basis of price fixed by the PUDA many years back at the time of original allotment also results into avoidable revenue loss to the State Exchequer. It is, therefore, directed that the practice being followed by the Registering Officer to levy stamp duty on the basis of price of land/ property fixed by the Punjab Urban Development Authority at the time of original allotment be discontinued where it does not match the market value at the time of registration of the relevant instruments and compliance of the above said statutory provision be ensured in letter and spirit strict action may be taken against the officers found to be not complying with the above said provisions.
(3.) THE receipt of this letter may also be acknowledged". 2. Since the questions raised are identical, for the facility of reference, the facts are taken from CWP No. 11530 of 2005. In the aforesaid case, House No. 984, Sector 3, Ajnala Road, Amritsar, was allotted to the petitioner by the Punjab Housing Development Board, Chandigarh, on 04.10.1988 at price of Rs. 2,20,590/-. The petitioner was required to pay a sum of Rs. 1,00,000/-, as claimed, before delivery of possession and the balance was payable in 156 monthly instalments. On completion of instalments, the petitioner sought execution and registration of the conveyance deed but the petitioner was directed to deposit stamp duty at the market rate of Rs. 6000/- per square yard. The assertion of the petitioner is that stamp duty is payable on the sale consideration of Rs. 2,20,590/-. Reliance was placed upon Section 3 of the Indian Stamp Act, 1899 (for short "the Act") contemplating that the stamp duty is payable on the amount of consideration. The relevant provisions of the Act read as under :- " 2(10) "Conveyance" - "conveyance" includes a conveyance on sale and every instrument by which property, whether movable or immovable, is transferred inter vivos and which is not otherwise specifically provided for by Schedule I or by Schedule I-A or by Schedule 1-B, as the case may be;" 3. Instruments chargeable with duty :- Subject to the provisions of this Act an the exemptions contained in Schedule I, the following instruments shall be chargeable with duty of the amount indicated in that Schedule as the proper duty therefore, respectively, that is to say - (a) every instrument mentioned in that Schedule which, not having been previously executed by any person, is executed in India on or after the first day of July, 1899; (b) to (c) xx xx xx xx xx Provided that, notwithstanding anything contained in clause (a), (b) or (c) of this Section or in Schedule I, and subject to the exemptions contained in Schedule I-A, the following instruments shall be chargeable with duty of the amount indicated in Schedule I-A, as the proper duty therefore, respectively, that is to say - (aa) every instrument mentioned in Schedule I-A as chargeable with duty under that Schedule, which, not having been previously executed by any person, is executed in Punjab on or after the date of commencement of this Act. (bb) xx xx xx xx xx" SCHEDULE-I Description of Instrument Proper Stamp duty 23. Conveyance, [as defined by section 2(10)], not being a transfer charged or exempted under (No. 62) - where the amount of value of the consideration Eight Annas for such conveyance as set forth therein does not exceed Rs. 50. where it exceeds Rs. 50 but does not exceed Rs. 100 One rupee SCHEDULE I-A (For Punjab) Description of Instrument Proper Stamp Duty 23. Conveyance as defined by Section 2(10) not being a transfer charged or exempted under No. 62 Where conveyance Amounts to sale of Immovable property Other conveyances (a) (b) 1 2 3 Where the value or amount of the consideration for such conveyance as set forth therein does not exceed Rs. 50; Three rupees Two rupees For Punjab " 27. Facts affecting duty to be set forth in instrument :- (1) The consideration (if any) and all other facts and circumstances affecting the chargeability of any instrument with duty, or the amount of the duty with which it is chargeable, shall be fully and truly set forth therein. (2) In the case of instruments relating to immovable property chargeable with an ad valorem on the value of the property, and not on the value set forth in the instrument, the instrument shall fully and truly set forth, the annual land revenue in the case of revenue paying land, the annual rental or gross assets, if any, in the case of other immovable property, the local rates, municipal or other taxes, if any, to which such property may be subject, and any other particulars which may be prescribed by rules made under this Act". 4. Learned counsel for the petitioner has vehemently argued that in terms of Section 3 of the Act read with Entry 23 in Schedule 1A of the Act, stamp duty is payable on the amount of consideration. The amount of consideration in respect of sale or allotment by the State or its instrumentalities is not subject to any dispute, therefore, stamp duty is payable on the sale consideration recited in the letter of allotment or such other similar document stipulating the sale consideration. It is contended that certain State Governments have made amendments in the Act levying stamp duty on the market value on the date of registration of the instrument but in the absence of provision in the Statute, the petitioner cannot be made liable to pay stamp duty on the market value of the property as on the date of registration of the instrument.;