AREVA T AND D LIGHTNING ARRESTERS PVT LTD Vs. ADDITIONAL SECRETARY DEPARTMENTAL OF REVENUE AND DISASTER MANAGEMENT GOVERNMENT OF PONDICHERRY

JUDGEMENT

(1.) PETITIONER-Company seeks Writ of Certiorari fled Mandamus to quash the Proceedings of the Respondent in No,9652/Rev-C3/2003 dated 04.12.2006 and direct the Respondent to refund the stamp duty of Rs.44,80,000/- as per clause [ii] of the Central Government notification No.12 dated 25th December 1937.

(2.) BRIEF facts which led to the filing of Writ Petition are as follows:(i) Petitioner is a Limited Company and its factory at RS-8/2, Sedarapet Main Road, Sedarapet Village, Pondicherry-605111 engaged in the business of designing, developing, manufacturing, buying and selling of lightning arresters, zinc oxide varistors and components thereof.(ii) S & S Hitech Security Systems Limited was a subsidiary company of SSB Industries Limited which was the Holding or Parent Company. The said SSB Industries Limited, Parent Company transferred all its assets namely land, building and machineries to and in favour of its wholly owned subsidiary company S & S Hitech Security Systems Limited and executed a sale deed dated 22.11.2000 registered as Document No,2310 of 2000 in the Sub-Registrar of Villianur, Pondicherry. The sale consideration was Rs.4,70,33,000/- and the total stamp duty of Rs.44,80,000/- was paid as prescribed under Article 23 [Conveyance] of Schedule 1 under Section 3 of the Indian Stamp Act.

(3.) CONTENDING that Respondent failed to consider the scope of Central Government Notification No.12 dated 25.12.1937, learned counsel for the Petitioner Mr. T.R. Senthilkumar inter alia raised the following contentions:- The Respondent failed to appreciate the transaction between the Petitioner company and its Parent company and the transaction is clearly exempt from stamp duty as per Notification No.12.- Cogent reading of Section 3 and 5 of the Pondicherry [Extension of Laws] Act, 1964 makes abundantly clear that the Indian Stamp Act was extended to Pondicherry with all rules, notifications, orders, regulations and byelaws made or issued by the Central Government under the provisions of such Act.- Respondent erred in rejecting the refund of stamp duty to the Petitioner Company as it involves huge Revenue loss to the Government and local body.