VIPUL PLASTIC Vs. STATE OF GUJARAT

JUDGEMENT

(1.) The petitioner was granted lease by Gujarat State Financial Corporation and the petitioner had executed security document including a memorandum entry in favor of Gujarat State Financial Corporation on 7/04/1992 and on that document, stamp duty was paid and affixed amounting to Rs. 4,375.00.

(2.) By letter dated 16/04/1992 (Annexure-F), the Gujarat State Finance Corporation called upon the petitioner to pay a further amount of Rs. 20,625.00 alleging that the duty payable would be Rs. 25,000.00 by virtue of the Government notification dated 6/04/1992.

(3.) That notification dated 6/04/1992 is Annexure-A to the petition. It is issued under Section 9 (a) of the Bombay Stamp Act. The heading of the section is Power to reduce, remit or compound duties and it provides that the State Government may, by rule or order published in the Official Gazette, reduce or remit, whether prospectively or retrospectively, the duties with which any instrument or any peculiar class of instrument is chargeable. It is, thus, clear that under this provision, the power has been granted to the State Government to remit or reduce stamp duty prospectively or retrospectively. Since it is a provision whereby the liability for the stamp duty is reduced, the power has been given to do so even retrospectively.