BALIA, J. - (1.) The appellant is the State of Rajasthan which challenged the order passed by the learned single Judge on 1-4-1998 in S.B. Civil Writ Petition No. 1480/97 (reported in 293) filed by respondent No. 1 M/s. Bhilwara Spinning Ltd. (for short, 'BSL') and respondent No.2 Mr. D.L. Birla, President and Shareholder of BSL, by which he allowed the writ petition and set aside the order dated 13th March, 1997 in case No. 65/97 raising a demand on account of deficiency in stamp duty and imposing penalty on the petitioner in relation to the instrument executed on behalf of the State of Rajasthan dated 25th March, 1988 and registered on 28th March, 1988 by the Collector (Stamps), Bhilwara.
(2.) The instrument, which is focus of attention to this appeal, reads as under :- "SUPPLEMENTARY LEASE DEED "This Lease Deed is made on the 25th Day of March, 1988 BETWEEN MESSRS BHILWARA SPINNERS LIMITED , (hereinafter called the 'Lessee') which expression shall unless excluded by or repugnant to the context, include his heirs, successors, executors, administrators and assigns of the FIRST PART and the Governor of State of Rajasthan hereinafter called the 'Lessor'), which expression shall unless excluded by or repugnant to the context include his successors in office and permitted assigns of the SECOND PART. Whereas the Lessor has granted the permission to transfer the lease hold rights in the land measuring 104 Bighas 08 Biswa (56 Acres approx,) in favour of the Lessee and the Lessee has agreed to accept the lease of a plot of land as described in the Lease Deed dated 22nd Nov. 1968 which was executed by Erstwhile Messers Rajasthan Spinning and Weaving MIlls Ltd., and which was registered at Sub Registrar Office Bhilwara on 25-11-1988. Whereas in compliance of Notification No. P4/59/U/1/83 dated 14th July, 1993, the Lessee agrees to execute this Supplementary Lease Deed for the land 89 Bigha 03 Biswa (56 Acres Approx.) equivalent to 104 Bigha 08 Biswas situated in Industrial Area, Bhilwara and more particularly described in the Schedule hereto (hereinafter called the Plot) upon the terms and conditions vide Notification dated 14th July, 1983. NOW THIS INDENTURE WITNESSES AS FOLLOWS : 1. That the Lessor agrees to let the said plot and the Lessee agrees to accept the said plot on lease for a balance period of SEVENTY TWO YEARS on rent. The Lessee shall have an option to renew the said lease for a further period of Ninety-nine years after expiry of the present terms of lease. 2. That the lessee shall be resposible for all the dues payable to the Lessor and to the other institutions. 3. That the Lessee agrees to abide by the directions issued from time to time by the State of Rajasthan. 4. That the lessee agrees not to transfer the part of this plot without the permission of the State Government. 5. That the Lessee shall utilise the said plot of land for the Industries use. 6. That the Lessee shall pay the stipulated rent of Rs. 1680/- (Rupees One Thousand Six Hundred Eighty Only) per year of the said plot to the Lessor. IN WITNESS thereof the parties hereto have set respective hands on the dates mentioned against their signatures. Sd/- //seal//> Signed for and on behalf of the Governor, State of Rajasthan. Witness 1. Sd/- //seal// Sd/- Sd/- //seal// //seal// Witness Signed by the said Lessee"
(3.) THE CONTROVERSY - Revenue contends it to be an instrument of conveyance of properties comprised in Bhilwara unit owned by Rajasthan Spinning and Weaving Mill Ltd. (RSWM) which includes plant, machinery buildings and fixtures along with lease hold rights in land on which factory is situated to respondent Bhilwara Spinning Ltd. hence Stamp Duty is payable as a conveyance ad valorem on entire value of the property comprising all the aforesaid assets and not as a document of lease as it reads.;