NAGPUR TIMBER MERCHANTS ASSOCIATION Vs. STATE OF MAHARASHTRA

JUDGEMENT

(1.) The petitioner-Association has challenged Government Resolution dated 27-8-2009 issued by respondent No. 2-Additional Chief Secretary (Forest), Government of Maharashtra and the Directions contained in letter dated 22-11-2009 issued by the Collector (Stamp), Chandrapur in pursuance of the Government Resolution and the further directions in pursuance thereof issued by the Dy. Inspector General of Registration and Deputy Controller of Stamps, Amravati, by which the stamp duty is sought to be recovered from the members of the petitioner-Association on the purchase of timber, firewood etc. under the Bombay Stamp Act, 1958.

(2.) The members of the petitioner-Association purchase timber and firewood from respondent Nos. 3 to 6 in open auction or through tenders at various Timber Depots in the State of Maharashtra, after notices are issued in Newspapers announcing the auction of timber, firewood at a particular date and time on a particular depot. After the bid is accepted, a document called "bid sheet" is drawn specifying therein the description and quantity of the timber purchased together with the sale prices. The bid sheet is then immediately signed by the purchaser and the officer of the Forest Department conducting the auction sale. Upon payment of entire sale price together with VAT, Forest Development

(3.) Admittedly, till 27-8-2009, the respondent did not make any demands for stamp duty. However, in pursuance of the impugned resolution dated 27-8-2009, the respondent amended the condition of sale of timber in the depots by inserting the paragraphs 12-A and 13-A of the earlier administration order and the Forest Officers conducting sales on behalf of respondent No. 1, 2, 3 and 6 started insisting on payment of stamp duty on full amount of sale particulars within seven days from the date of auction or communication of acceptance of the bid failing which the purchases were informed they would be charged interest at the rate of 18%. Clause 12A, which was introduced in the earlier Government Resolution for the purposes of imposition of Stamp Duty by Government Resolution dated 27-8-2009, reads as follows :-