Customers Cannot Suffer Due To Your Technical Glitches Of Revenue Department, States Division Bench Of Bombay High Court To Chief Controlling Revenue

A precedent is laid down by the Hon'ble Bombay High Court in the Writ Petition No. 1007 of 2018, wherein the Division Bench of His Lordship Hon'ble Justice Shri S.V. Gangapurwala and His Lordship Hon'ble Justice Shri Madhav J. Jamdar vide their order dated 22^nd August, 2022 have directed the Chief Controlling Revenue Authority i.e. the Respondent in the said matter to adjust the amount of Stamp Duty paid by the Petitioner in the General stamp head i.e. Anand I Power amounting to Rs.40,00,000/- (Rupees Fourty Lakh Only) in the proper head, as the payment of the same was not being acknowledged by the Respondents, instead they were asking for a penalty of more than Rs.1,00,00,000/- (Rupees One Crore Only) from the Petitioner. Managing Partner of Solicis Lex Advisory Mr Ameet Mehta stated that "The Division Bench vide the said order not only directed the Government Authority to adjust the amount but also directed that the Petitioner is not liable to pay any penalty and snubbed the Revenue Authorities".

Summary

Adv Vaishali Sanghavi, Senior Associate Partner at Solicis Lex explained the background that "There were two companies namely Perfect Circle Victor Ltd. (Transferor) and another named Victor Gasket India Ltd. (Transferee). In the year 2001, the said companies proposed Amalgamation under sections 391 to 394 of the Companies Act, 1956, for which the said companies had filed Company Petition No. 882 before the Hon'ble High Court, Bombay. The Hon'ble High Court had approved and sanctioned the scheme of Arrangement vide an Order dated 17^th October, 2001''

Adv Milli Murgudkar, Principal Associate at Solicis Lex stated that ''Pursuant to the sanctioned order, the Petitioner had filed an application under Section 31 of The Bombay Stamp Act, 1958, in the office of stamps, Bombay dated 3^rd November, 2001, to inquire for the stamp duty on the said instrument and their papers were forwarded to the Collector of Stamps, Pune, for valuation. The Joint District Registrar, Pune, submitted its report to the Collector of Stamps, Mumbai, wherein the true value depicted was Rs.2,12,17,000/- (Rupees Two Crore Twelve Lakh Seventeen Thousand Only). However, Collector of Stamps, Mumbai, did not consider the said amount, instead took the view that book value of the said instrument is Rs.7,80,98,000/- (Rupees Seven Crore Eighty Lakh Ninety-Eight Thousand Only) and that should be considered as true market value of assessing the stamp duty by order dated 16^th August, 2002".

Aggrieved by an order of Collector of Stamps, Mumbai, Petitioner had filed an Appeal before Chief Controlling Revenue Authority, Pune, against the order dated 16^th August, 2002. However, the Chief Controlling Revenue Authority, Pune, had already given a stamp of approval to the order dated 16^th August, 2002.

In meanwhile, Collector of Stamps, Mumbai vide demand notice dated 15th July, 2003, demanded the payment of Stamp duty for sum of Rs.54,66,860/-(Rupees Fifty Four Lakh Sixty Six Thousand Eight Hundred And Sixty Only), towards the payable stamp duty under Article 25(d-a) of the Schedule-I of the Bombay Stamp Act.

Subsequently the Petitioner preferred Writ Petition No. 5849 of 2003, wherein by an order dated 18^th August, 2003 the Petitioner were directed to give a Bank Guarantee for a sum of Rs.40,00,000/- (Rupees Forty Lakhs) and a simple interest rate of 8% per annum, in favour of the Registrar.

Further, by the order of the Hon'ble High Court of Bombay dated 13^th March, 2008, the Chief Controlling Revenue Authority initiated proceedings once again being Appeal No. 32/2002 and 33/2003. On 19^th August, 2014, the CCRA passed an order to the Petitioner for the payment of sum of Rs.40,00,000/- (Rupees Forty Lakhs Only) towards Stamp Duty within 10 days of the receipt of the order.

After the said order, the Petitioner paid the said amount within 10 days. However, the Chief Controlling Revenue Authority did not acknowledge the receipt of the said order by stating that the same was deposited under the wrong head in the stamps department. And sent a notice directing the Petitioner to pay the said amount of Rs.40,00,000/- (Rupees Forty Lakhs Only) along with 2% interest as per Section 46 of the Maharashtra Stamp Act 1958.

Aggrieved by the said order the Petitioner filed a Writ Petition No. 1007 of 2019.

Arguing Counsel Mr Abhishek Sawant stated that ''On hearing both the parties at length on 22^nd August, 2022 the Division Bench of His Lordship Hon'ble Shri Justice Shri S.V. Gangapurwala and His Lordship Hon'ble Justice Shri Madhav J. Jamdar were pleased to pass an order in favour of Petitioner with certain laid down principles''

"The present Writ Petition is a classic illustration of the litigants facing problems due to technical glitches. And further observed that, if according to the Respondents the amount was not deposited in the proper account, it could have refunded the amount to the Petitioner so as to redeposit the same in the proper account or the said Authority itself would have transferred the same to the proper account, as the communication was in the same financial year. In light of the above, we set aside the impugned notice. The authority shall take steps according to law to adjust the amount deposited by the Petitioner on 27^th August, 2014 with the Finance Department, State of Maharashtra under Challan No. CP 09418029 in the proper account. Further consequences shall follow."

Case Title: Anand I Power Ltd. Vs. The Chief Controlling Revenue Authority & Ors.