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2004 DIGILAW 1803 (ALL)

Jwala Prasad v. State Of U. P.

2004-09-13

S.U.KHAN

body2004
ORDER : S.U. Khan, J. All the respondents are represented by learned standing counsel. As the question involved is a pure question of law hence both the learned counsel have agreed for disposal of the writ petition at the admission stage without calling for counter and rejoinder-affidavits. 2. This writ petition is directed against order dated 22.6.2004 passed by Additional Collector (Finance/Revenue), Pilibhit, determining an amount of Rs. 13,050/- as deficiency of stamp duty on the gift deed in question and imposing penalty of Rs. 5,000. 3. By virtue of Government order dated 24.2.1997 (as extended from time to time), the stamp duty payable on conveyance as defined u/s 2(10) and provided for under Article 23 of Schedule 1B of Stamp Act has been reduced from Rs. 125 per thousand to Rs. 80 per thousand. The only point to be decided in this writ petition is as to whether the said reduction applies to gift deeds also or not. Under Article 33 of Schedule 1B stamp duty payable on a deed of gift is provided for, as "the same duty as a conveyance [No. 23 Clause (a)]". However, u/s 2(10) of the Act which defines conveyance it is provided that "Conveyance includes a conveyance on sale and every instrument by which property, whether movable or immovable, is transferred inter vivos, and which is not otherwise specifically provided for by Schedule 1, Schedule 1A or Schedule 1B, as the case may be." 4. As gift deed is otherwise specifically provided under Article 33 of Schedule 1B hence reduction of stamp duty on conveyance will not apply to gift deed. This position has been clarified by the concluding paragraph of Government order dated 24.2.1997 itself which says that the reduction will not be applicable to any document except conveyance and reference to conveyance for determining stamp duty in any other Article of the Schedule would mean stamp duty payable under Article 23 (conveyance) as payable there under prior to the said notification. 5. In view of the above, I do not find any error in the impugned order. Stamp duty on gift deed is payable as per the same rate which was applicable prior to Government order dated 24.2.1997 i.e. at the rate of Rs. 125 per thousand. 6. However, in the facts and circumstances of the case imposition of penalty was not at all warranted. Stamp duty on gift deed is payable as per the same rate which was applicable prior to Government order dated 24.2.1997 i.e. at the rate of Rs. 125 per thousand. 6. However, in the facts and circumstances of the case imposition of penalty was not at all warranted. Accordingly, impugned order dated 22.6.2004 passed by Additional Collector (Finance and Revenue), Pilibhit in Case No. 225 of 2003-04, State v. Jwala Prasad is set aside in part. The penalty of Rs. 5,000/- imposed by the said order is set aside. The order regarding imposition of stamp duty is maintained. The balance amount of stamp deficiency determined by the impugned order dated 22.6.2004 after deducting the amount of Rs. 3,263/- stated to have been deposited before the Commissioner shall be deposited by the petitioner within four months. 7. For a period of four months recovery proceedings shall remain stayed.