Whether authorities under Stamp Act are bound by rates mentioned in Ready Reckoner?
the learned Government Pleader in support of his contentions that the
rates mentioned in the Ready Reckoner are guidelines to the registering
authority for the imposition of stamp duty. The Judgment of the
Division Bench of this Court in the case of Solapur Promoters and
Builders Association (supra) was concerning the development charges
which are to be levied under Chapter VIA of the Maharashtra Regional
Town Planning Act. The imposition of charges at flat rate regardless of
location of land was challenged on the ground that it was violative of
Article 14 of the Constitution of India. In support of the said
contention, reliance was sought to be placed on the rates mentioned in
the annual statement of rates published by the State Government i.e.
the Ready Reckoner rates. The Division Bench held that the reliance
placed by the Petitioner in the said Petition on the Ready Reckoner
which is device for the purpose of imposition of stamp duty was
misplaced as a Ready Reckoner provides guidelines to the registering
authorities for the imposition of stamp duty which is depending upon
the market value of the property. Now coming to the Judgment of the
Division Bench of this Court in the case of Prasadnagar Cooperative
(supra) the quashing and setting aside of the Ready Reckoner rates and
the amendment thereto in respect of the Petitioner's layout situated at
Jaitala, Nagpur was sought. The Division Bench, whilst allowing the
Petition, directed the Respondents to treat the Ready Reckoner as
guidelines and as a declaration of prima facie market value.
Hence, by the Judgments (supra), this Court has treated the
Ready Reckoner as merely guidelines for the purposes of imposition of
the stamp duty, as the same depends on the market value of the
property.
18) In the instant case, as indicated above, it is an undisputed
fact that the Petitioner's property which is the subject matter of the
Indenture is situated in the “Phoenix Mills Compound” and bears CTS
Nos.1/142, 71 and 109. The question is whether the said instrument is
to be charged on the basis of Value Zone 12/91 or Value Zone 12/91G
as contained in the Ready Reckoner. In the said context, it is required to
be noted that by the Value Zone 12/91G all the properties of Phoenix
Mills are covered meaning thereby that the Phoenix Mills Compound is
treated as an entity by itself considering the commercial value of the
properties situated therein and is therefore placed in Value Zone
12/91G which is to be considered whilst adjudicating the stamp duty
that is payable in respect of the instrument which is in respect of a
property situated therein. Hence, though the CTS numbers of the
Petitioner's property are placed in Value Zone 12/91, which attracts a
lesser stamp duty, the Petitioner would be liable to pay stamp duty as
per Value Zone 12/91G as the Phoenix Mills Compound is treated as an
entity by itself and therefore, though a part of the property in the said
Phoenix Mills Compound is placed in Value Zone 12/91, the same is
obviously a mistake which has been corrected by issuance of the letter
dated 10th January, 2012 of the Deputy Director of Town Planning,
Mumbai.
19) Insofar as the adjudication by the Respondent No. 1 is
concerned, the fact is that the rates mentioned in the Ready Reckoner
are guidelines to the registering authorities for the adjudication of the
stamp duty, the Respondent No. 1 or for that matter even the Collector
of Stamps would therefore not be bound by the rates mentioned in the
Ready Reckoner and even if there were not to be any correction as in
the instant case, by which correction, the CTS numbers of the Petitioner
are now included in Value Zone 12/91G, the Respondent No. 1 would
still be entitled to rely upon the said Value Zone 12/91G for the
purposes of calculating the stamp duty payable on the said Indenture as
the Petitioner's property is undisputedly situated in the Phoenix Mills
Compound. Hence, there is no question of the amendment to Value
Zone 12/91G being applied retrospectively. It is required to be noted
that the powers of the authorities under the Stamp Act are wide enough
and cannot be fettered by the rates mentioned in the Ready Reckoner.
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
CIVIL APPELLATE JURISDICTION
WRIT PETITION NO. 4036 OF 2013
CR Retail Malls (India) Limited
versus
Chief Controlling Revenue
CORAM : R. M. SAVANT, J.
PRONOUNCED ON : JULY 9 , 2014
Citation: 2016(2) ALLMR 289
https://www.lawweb.in/2016/05/whether-authorities-under-stamp-act-are.html
