Case Law Details
Deputy Collector & Anr. Vs Meera S. Desai & Anr. (Gujarat High Court)
The case of Deputy Collector & Anr. vs. Meera S. Desai & Anr. before the Gujarat High Court revolves around the issue of whether stamp duty can be levied twice on the same sale consideration for property transfer. The appeal was filed by the state, represented by the learned AGP Ms. Hetal Patel, against the decision of the learned Single Judge who had quashed the show-cause notices and the order passed by the Stamp Authority.
The main contention of the appellant was that the notices were issued de hors the provision of Sub-Section (4) of Section 32(A), as no proceedings can be initiated after six years of the registration of the instrument. The Agreement to Sale in question was executed on 22.11.2004, and a show-cause notice was issued on 21.11.2012, which the petitioner argued was beyond the stipulated time limit.
The petitioners, who were purchasers of certain plots developed by the landowner, claimed that the Agreement to Sale was registered with possession, and the entire stamp duty leviable on the sale consideration had been paid at the time of registration. The Sale Deed was executed on 30.05.2005, and a notice under Section 33 of the Gujarat Stamp Act, 1958, was issued in 2005, leading to the order to pay deficit stamp duty and penalty in 2015.
The appellant argued that no stamp duty was paid at the time of registration of the sale deed, hence the notice was valid. However, the court rejected this argument, emphasizing that stamp duty is leviable on the sale consideration, which is part of the instrument of transfer. Since the stamp duty was paid at the time of registration of the agreement to sale with possession, it could not be levied again on the sale deed executed pursuant to the agreement.
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