Gurdev Raj Kumar Vs Collector of Stamps (Goverment of NCT of Delhi) (Delhi High Court)
The Delhi High Court disposed of a petition filed by Gurdev Raj Kumar, seeking the quashing of an order passed by the Collector of Stamps, GNCTD, which directed the petitioner to pay a deficient stamp duty of ₹51,740/- along with a penalty of ₹2,06,960/-. The total amount of ₹2,58,700/- was paid by the petitioner to facilitate the registration of the lease deed. The petitioner also sought a refund of this amount.
I. Factual Background and Issue
The petitioner had entered into a lease deed dated July 1, 2020, with Optimum Therapeutics Private Limited for a residential property in Vasant Vihar, New Delhi. Clause 6 of the lease deed explicitly stated that the property would be used solely for residential purposes.
When the lease deed was presented for registration, the Sub-Registrar impounded it under Section 33 of the Indian Stamp Act, 1899, on the ground of deficient stamp duty. The alleged deficiency was due to the purported applicability of GST on the lease rent, which the Registrar included for stamp duty computation purposes.
The matter was referred to the Collector of Stamps. The petitioner submitted representations arguing two points:
1. GST Exemption: Leases of residential property for residential purposes are exempt from GST under Entry No. 12 of Notification No. 12/2017-Central Tax (Rate).
2. Stamp Duty Calculation: Even if GST were applicable, its component does not form part of the lease rent for stamp duty purposes, citing a Circular (No. 3759/01/2015-2 dated May 24, 2019) from the Inspector General of Registration, Chennai.
The Collector of Stamps rejected these representations via the impugned order dated October 19, 2020, and directed the payment of the deficient stamp duty and penalty.
