CHENNAI: The Madras High Court quashed the order demanding payment of additional stamp duty and registration fee of Rs 17.29 crore for 108 acres of land purchased from the central government.
There was an oil storage depot of Hindustan Petroleum Company in Thandaiarpet, Chennai.
The Hindustan Company decided to transfer 108 acres of land owned by the Central Government Salt Corporation in Athipattu and Valluar villages near Ennuar.
The central government also agreed and offered to provide 108 acres of land for 19.45 crore rupees.
Hindustan Petroleum Corporation issued a check for Rs 19.45 crore as per the Central Government order. The land was also handed over in May 2009. The document was registered in 2014.
The Chennai District Stamp Officer ordered the Hindustan Company to pay Rs 17.29 crore as differential stamp duty and registration fee without releasing the registered document.
Hindustan Petroleum Company filed a petition against this in the High Court. Justice Satish Kumar heard the petition.
Public Prosecutor appearing for the District Stamp Officer ‘did not mention the actual market price in the sale deed. The guide value is higher than the price mentioned in the document. That’s why the document has been suspended and the order has been issued’ he said.
Judge Satish Kumar who heard the petition passed the order:
The sale deed is registered only after the central government receives the sale price.
The district stamp officer has taken this step because the guide value is higher than the market price. It is not the case that the amount was paid less than the actual market price.
The sale price has been paid to the central government. Hence the question of concealment of the true market price does not arise. Indicative assessment is prepared by revenue authorities. It cannot be considered equal to the market price.
Hence differential stamp duty cannot be claimed to be paid on the ground that the guide value is more than the market price.
It cannot be held that the understatement was made in order to avoid stamp duty. Therefore, the order passed by the District Stamp Officer is set aside.
This is what the judge has ordered.
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