TATA CONSULTANCY SERVICES Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) PETITIONER has sought for quashing of three demand notices under annexures-G, H and J, whereby the petitioner has been asked to pay certain amounts of additional stamp duty payable under Section 3-B of the Karnataka Stamp Act, 1957 ('the Act', for short) on the premise that such stamp duty paid in respect of three transactions referred to in the demand notices was less than what was actually due under Section 3-B of the Act and the petitioner was required to make good the difference.

(2.) PETITIONER being aggrieved by this demand notice, has approached this Court for relief on the premise that the demand is not in consonance with the provisions of the Act, but in fact is in contravention of a notification dated 16-6-1999 issued by the Government in exercise of its power under Section 9 (l) (a) of the Act and these demand notices are required to be quashed and the petitioner is not liable to make good this amount.

(3.) THE State Government has been conferred the power to reduce stamp duty payable under the Act upto 50% or any part of it either prospectively or retrospectively with reference to any area in the State if the State Government is of the opinion that it is necessary to do so in public interest. The exemption could be with reference to a particular class of instruments or with reference to a particular class of persons in whose favour the instrument is executed.