KARA BHIMA Vs. CHIEF CONTROLLING REVENUE AUTHORITY

JUDGEMENT

(1.) The Chief Controlling Revenue Authority, Gujarat State has referred the following two questions under Section 56 of the Bombay Stamp Act, 1958 (the Act) :

(2.) The applicant, an individual, had applied to Bank of India, Dungarpur Branch, Taluka District Junagadh for a loan of Rs. 9,80,000/- for the purchase of Air Compressors, Drilling Rods and other Accessories under Agricultural Finance Scheme. Upon being granted the said financial facility, the parties had entered into an agreement through an instrument termed as "Simple Mortgage Deed". The said instrument was presented for registration with Sub-Registrar, Manavdar on 7.12.1985 bearing Sr. No. 317. Admittedly, no stamp duty has been paid on the instrument.

(3.) During inspection by the Accountant General, Ahmedabad of the Sub-Registrar's Office, Manavdar an audit issue was raised that the instrument in question is not entitled to get the benefit of exemption under Government Order No. G.O.R.D. No. GHM779-108-M-STP-1479/2288-H dated 23.3.1979. The Sub-Registrar, Manavdar therefore sent the instrument to the Deputy Collector, Stamp Duty Valuation Organisation, Junagadh for taking necessary action in the matter. The Deputy Collector, Stamp Duty Valuation Organisation, Junagadh acting under the provisions of Section 39 of the Act, after hearing the applicant. directed the applicant to pay deficit stamp duty to the tune of Rs. 98,000/- together with the penalty quantified at Rs. 1,96,000/- in exercise of powers under Section 39(i)(b) of the Act.