PASALU THIMMAPPA Vs. KARNATAKA APPELLATE TRIBUNAL BANGALORE

JUDGEMENT

(1.) In these petitions the short question that arises for consideration is whether a declaration filed in Form No. 3 prescribed under the rules framed under the Karnataka Agricultural Credit Operations and Miscellaneous Provisions Act, 1974, is a simple mortgage for the purpose of stamp duty to be collected under the Karnataka Stamp Act or not. The form of declaration is as follows:

(2.) The authorities concerned having held that the declaration in question is a mortgage, called upon the petitioners to pay the deficit stamp fee. Aggrieved by that action petitioners preferred appeal before the Karnataka Appellate Tribunal. The Appellate Tribunal examined the matter at great length and on examination the various provisions of the Karnataka Agricultural Credit Operations and Miscellaneous Provisions Act 1974 and the Stamp Act came to the conclusion that the said declaration creates a mortgage and therefore the Revenue Authorities were justified in reaching the conclusion that the deficit stamp duty is to be paid.

(3.) It is urged on behalf of the petitioners that along with the declaration deposit of title deeds is made. Therefore, it does not amount to simple mortgage, but an agreement to deposit the title deeds and the Karnataka Agricultural Credit Operations and Miscellaneous Provisions Act is a special enactment providing for a special procedure for borrowing monies and therefore, the provisions of the Stamp Act does not attract the transaction and even if it does, the transaction in question is only a deposit of title deeds and therefore, the duty could be imposed only under item No. 6 of the schedule to the Stamp Act.