INSPECTOR GENERAL OF REGISTRATION Vs. VELAYUTHASWAMY SPINNING MILLS (P) LTD , REP BY ITS DIRECTOR P S VELUSWAMY

JUDGEMENT

(1.) Introductory

(2.) The respondent in the respective appeals (hereinafter referred to as "the respondents") are sister concerns based at Tirupur. The respondents purchased 4 Windmills erected by M/s.Vishal Export Overseas in various villages in Udumalpet Taluk, Coimbatore District. The respondents purchased the windmills along with the immovable property. The respondents made payment to the windmills and obtained receipt. The respondents prepared Sale Deeds relating to the respective immovable property indicating the land value. However, in the Schedule to the documents, windmills were also shown as the transferred property. Similarly, in the signed statement given under the Stamp Act, the respondents have indicated the value of windmills. The Sub-Registrar therefore directed the respondents to pay the Stamp Duty taking into account the total value of the transfer. The respondents paid the Stamp Duty and got the documents registered. Thereafter, the respondents submitted petitions for refund of the excess amount on the ground that windmill is only a movable property and therefore, there is no liability to pay Stamp duty for the value shown for the windmills. The petitions were rejected. The related writ petitions were allowed by the learned single Judge by giving a finding that the windmill is a movable property and therefore, Stamp Duty is not payable on its value. The common order passed by the Writ Court is the subject matter of the appeals.

(3.) A) The learned Advocate General by placing reliance on Section 2(6) of the Registration Act, 1908, Section 3(4) of the Transfer of Property Act, Entry 23 of the Schedule 2 to the Stamp Act and Section 3 of the said Act, contended that windmill is permanently embedded in the earth and therefore, Stamp Duty is leviable on its sale value. It was contended that the windmill and immovable property were sold together. The fact that two agreements were executed, one for windmill alone and another for immovable property does not matter much. Since the value of the mill is included in the document, and windmill was shown as a transferred item, stamp duty was correctly levied by the Sub-Registrar.