Jammu & Kashmir High Court Stays Levy Of Revised Stamp Duties On Registration Of Documents

A Single Bench of Justice Sanjay Dhar passed the order on a petition challenging retrospective application of the said revised rates.

Noting that the plea raises an important questions of law, the Judge stayed the circular dated December 13, 2020 and directed the Inspector General of Registration, J&K, to not insist on the Petitioner to pau stamp duty on revised rates.

Background

The Inspector General of Registration, J&K, Jammu has issued a Circular on December 30, 2020, whereby all Registrars and Sub-Registrars were asked to charge stamp duty as per new rates w.e.f. January 1, 2021. They were instructed to charge revised rates, irrespective of the date of filing of the documents.

The Petitioner in this case executed a sale deed on December 22, 2020 and the same was uploaded for its presentation for registration before the Sub-Registrar on December 28, 2020. The appointed date of the registration was given as January 4, 2021.

Thus, by the time of actual registration, the revised rates had come into effect in terms of the impugned Circular.

Consequently, when the Petitioner's document came up for registration before the Sub-Registrar concerned, she was asked to affix stamp duty in terms of the revised market rates, though she had affixed the stamp duty in terms of the market rates applicable as on the date of execution of the document.

Arguments

The Petitioner argued that it is the 'date of execution' of a document which determines the rate at which stamp duty has to be affixed on a document and not the date on which the document is actually registered by the Sub-Registrar.

The Petitioner's counsel Advocate Nisar Ahmad Bhat referred to Section 47 of Registration Act, according to which, a document, irrespective of date of its registration, takes effect from the date of its execution.

He further argued that the Inspector General of Registration has no jurisdiction to issue a circular in respect of charging of stamp duties.

Findings

The Bench issued notice on the petition while making an observation that the plea raises an important question of law.

It also granted interim relief to the Petitioner inasmuch as the concerned Registrar was directed to examine the Petitioner's application and register it without insisting payment of stamp duty on revised rates.

It observed,

"The impugned circular issued by the Inspector General of Registration, J&K, Jammu is stayed and respondent No. 6 is directed to consider the document in question presented by the petitioner for its Registration and in case the same fulfills all other requirements of law and rules, the document be admitted to Registration without insisting in payment of stamp duty on revised rates."

The direction is however made subject to the outcome of the instant proceedings. The Bench said that its order will operate subject to filing of an undertaking by the petitioner that in case she fails in this petition, she shall make good the deficiency of stamp duty.

The matter is now listed for hearing on April 12, 2021.

Case Title: Shabnam Nazir v. Government of J&K & Ors.

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