Prestige Exora Business Parks Limited Vs State of Karnataka (Karnataka High Court)
Karnataka High Court held that statutory upper limit of maximum stamp duty INR 25 crores under the Karnataka Stamp (Second Amendment) Act, 2022 is not applicable to the additional duty levied under section 3B the Karnataka Stamp Act, 1957.
Facts- The National Company Law Tribunal, by its order dated 22.04.2022, sanctioned a scheme of arrangement between Prestige Exora Business Parks Limited and Pluto Cessna Business Park Private Limited, along with their respective shareholders and creditors. Under this scheme, Exora Business Park, along with the CAM business, was demerged from Prestige Exora Business Park Limited and vested in Pluto Business Park Private Ltd. as a going concern u/s. 230 to 232 of the Companies Act, 2013.
The NCLT order falls within the definition of a conveyance u/s. 2(1)(d) of the Karnataka Stamp Act, 1957, and stamp duty is payable on this conveyance as prescribed under Article 20(4)(ii) of the Schedule to the Karnataka Stamp Act, 1957.
The petitioner contends that the maximum stamp duty payable on the conveyance is Rs.25 crore, in light of the amendment to Article 20(4) of the Karnataka Stamp Act, 1957. However, respondent No.3, after adjudication, determined the stamp duty payable on the conveyance to be Rs.25 crore, along with an additional duty of Rs.2.5 crore under Section 3B of the Karnataka Stamp Act, 1957. The petitioner challenges the imposition of cess at 10% of the stamp duty amounting to Rs.2.5 crore.
