CALTEX INDIA LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) THIS order will dispose of Civil Writs Nos. 118-D and 119-D of 1957.

(2.) IN these petitions under Articles 226 and 227 of the Constitution the main prayer is that a mandamus be issued to respondent No. 2 to refer the question of stamp duty leviable on two deeds of lease for opinion under Section 57 of the Indian Stamp Act, 1899.

(3.) THE lease deeds were presented before the Sub-Registrar for registration and one of the terms was that Rs. 25,000/- were to he paid as advance rent and that amount was to be treated as rental for the first 36 months payable on the date of occupancy of the premises, the rate of rent reserved being Rs. 700/- per month. The lease deeds were executed on the stamp paper of the value of Rs. 85/- each which duty was calculated under Article 35 (a) (ii) of the Indian Stamp Act. The Registrar impounded the deeds and sent them to the Collector under Section 38 (2), On 19th October 1954 the Collector issued a notice to the Manager of the petitioner-Company to show cause why the deficient stamp duty of Rs. 765/- should not be recovered with penalty extending to Rs. 7,650/- with regard to each deed. It was represented to the Collector that the duty had been correctly paid and that previously too before executing and registering a deed similar in all respects to the deeds in question the petitioner had written a letter dated 17th February 1953 to the Collector and made an enquiry with regard to the proper amount of stamp duty. The Collector had advised that the stamp duty payable was Rs. 90/- which fact was duly certified by the Collector on 25th March 1953 on the deed itself. A notice was sent by the Collector on 25th June 1955 calling upon the petitioner to deposit Rs. 765/- as deficient stamp duty and Rs. 1, 530/- as penalty, in each case.