JAGGA REDDY Vs. GOVERNMENT OF ANDHRA PRADESH

JUDGEMENT

(1.) In these writ petitions, petitioners challenge the orders revising the Stamp duty and demanding registration fee on the lease agreements entered into by the petitioners with the Assistant Director of Mines and Geology- 4th respondent in WP Nos. 25723, 25826 and 30914 2008 and 2nd respondent in W.P. No. 23710 of 2008. For the sake of convenience, the facts in Writ Petition No. 25723 of 2008 are considered. The Convener of Mahaboobnagar District Level Sand Committee published notification No. 3594/SAND/06, dated 11.06.2007 inviting the sealed tenders/public auction for leasing out the right of quarrying for the sand at various places in the district as notified (Ex. P-2 at page No. 13 of the paper book). Petitioner participated for Ankilla and Veeranagar villages of Koilasagar Project, Koilkonda Mandal, Mahaboobnagar District (Item 8 of the notification). Auctions were conducted on 28.06.2007. Petitioner stood as highest bidder. By proceedings dated 05.07.2007, District Collector confirmed the auction in favour of petitioner; petitioner was asked to deposit Rs. 5,65,200/- towards stamps and an additional amount towards security deposit. Consequent to depositing of the above amounts, an agreement was entered on 18.07.2007. The agreement prescribes the lease period up to 31.03.2009. Lease amount for the first year was Rs. 1,57,00,000/- and for the second year 20% of the above amount was added as lease amount. The first period was from 15.07.2007 to 31.03.2008 and the second period was from 01.04.2008 to 31.03.2009. Towards second year lease period, petitioner paid an amount of Rs. 1,88,40,000/- and accordingly permission was granted to the petitioner by the proceedings No. 241/Sand/2008, dated 27.05.2008.

(2.) The Assistant Director of Mines and Geology served notice dated 16.10.2008 on the petitioner alleging that there was short levy of stamp duty and registration fees and called upon the petitioner to pay the difference of levy of stamp duty and registration fee on security deposit. The amount quantified is Rs. 9,33,850/- towards short levy of stamp duty and Rs. 55,705/- towards difference of registration fees. Challenging the impugned proceedings of Assistant Director of Mines and Geology, dated 16.10.2008, this writ petition is instituted. It is contended that the amount assessed in the impugned notice is based on the assumption that the stamp duty payable on the lease agreement is 5%. Petitioner avers that petitioner is entitled to pay only 2% of the stamp duty on lease amount and not 5% and no amount is payable as registration charges on security deposit as the same has to be refunded after completion of the period of lease.

(3.) 4th respondent filed counter-affidavit. It is averred that on conduct of audit in the office of 4th respondent by the Special Audit Party of the Office of Accountant General, vide letter No. AG/(C&RA) SRA (HQ)/Review party No. 1/2008/135, dated 19.11.2008 it was pointed out that there was short levy and realization of stamp duty and registration fees. It is averred that Vigilance and Enforcement Department recorded in their appraisal report that as per the rates of stamp duty prevailing up to 31.07.2005, the stamp duty chargeable is 5% and that as per clause (d) to Section 17(i) of Registration Act, 1908, all leases are compulsorily registrable documents with effect from 01.04.1999 and registration fee at the rate of 0.5% on the bid amount should be collected, whereas far less amount was collected. The Director of Mines and Geology vide Memo No. 39515/Vg/07, dated 04.12.2007 has brought to the notice of the deponent the same. It is thus averred that the impugned notice was validly issued.