No Provision Empowering Collector To Recover Deficiency In Registration Fee Under Stamp Act: Allahabad High Court
Upasna Agrawal
21 Oct 2024 11:00 AM IST
The Allahabad High Court has held that there is no provision in the Indian Stamp Act, 1899 which empowers the Collector or other stamp authorities to recover deficiency in registration fees.
Besides recovery of deficiency in Stamp Duty, recovery was ordered against the petitioner regarding deficiency in registration fees on Document No. 1549/2022 & 1548/2022. Further, penalty of Rs. 10,000/- & Rs. 50,000/- were also imposed on the petitioner regarding deficiency in registration fees. Petitioner challenged this order before the Additional Commissioner (Stamp), Ayodhya Division, Ayodhya which was dismissed.
Counsel for petitioner argued that petitioner had purchased the property vide sale deeds executed by certain imposters and subsequently, the sale deeds had been cancelled through a compromise entered between the petitioner and the true owner of the land. It was when the petitioner applied for return of stamp duty paid on the sale deed, the authorities pointed out deficiency in stamp duty. It was argued that there was no satisfaction recorded in the notices before issuing them.
Per contra, counsel for State argued that the petitioner had at no stage challenged the validity of the notices and therefore, he cannot be allowed to raise it for the first time before the writ court. Reliance was placed on the decision of the Supreme Court in Deepak Tandon and others verses Rajesh Kumar Gupta.
The Court observed that in Deepak Tandon and others verses Rajesh Kumar Gupta, the Apex Court had held that a factual plea which has not been taken in lower proceedings cannot be taken in a third Court, writ, revision or appeal.
Justice Vidyarthi held that the notice being vague is not a question of fact but is an error apparent on the face of record and can be challenged for the first time in writ jurisdiction. Observing that the notices issued to the petitioner were vague, the Court also held that there was nothing on record to show that inspection mentioned in the notice was carried out after giving due notice to the petitioner.
Referring to the Indian Stamp Act, 1899 and Uttar Pradesh Stamp (Valuation of Property) Rules, 1997, Justice Subhash Vidyarthi held that “there appears to be no provision in the Indian Stamp Act, 1899 empowering the authorities to order recovery of any deficiency in payment of registration fee and in absence of any statutory provision, the authorities cannot passed any order for recovery of deficiency of registration fee in proceedings instituted under the India Stamp Act.”
Accordingly, the Court quashed the notices and orders impugned with a liberty to the State to issue fresh notices.
Case Title: Bindu Singh v. State Of U.P. Thru. Prin. Secy. Revenue Deptt. Lko. And 2 Others [WRIT - C No. - 8666 of 2024]
