PATLIPUTRA CO-OPERATIVE Vs. STATE OF BIHAR

JUDGEMENT

(1.) The petitioner which is a society registered under the Bihar and Orissa Co-operative Societies Act, 1935 (Bihar Act VI of 1935, hereinafter called the Act) prays for quashing the notice (Annexure '1') issued by the Stamp Deputy Collector, Legal Section, Patna (respondent No. 2 dated 18.12.1971 to the petitioner demanding Rs 284.20 payable under the document presented for registration and directing it to show cause as to why fine should not be imposed upon. It the petitioner also prays for issue of a mandamus directing the District Registrar, Patna respondent No. 3 register the sale deed presented before him for registration. It may be stated here that the petitioner presented a document of transfer executed on its behalf for registration before the registering authority. A notice of demand dated 18.7.1971 contained in Annexure T aforesaid was issued to the petitioner.

(2.) It is not disputed before this Court that the petitioner which is a registered society as aforesaid is exempted from payment of any stamp duty by notification issued under Section 9 of the Indian Stamp Act, 1899 (Act II of 1899 hereinafter called the Stamp Act; Our attention was drawn to item 27 of appendix V of the Stamp Act under which exemption is claimed, which runs as follows:

(3.) Mr. J.C. Sinha, learned Counsel appearing on behalf of the petitioner contended that the petitioner being a body exempted from payment of any stamp duty under item No. 27 of Appendix V of the Stamp Act, respondent No. 2 was not justified in demanding two per cent of duty on the value of the property covered by the sale deed by applying Section 86 of the Bihar Town Planning and Improvement Trust Act, 1951 (Bihar Act 35 of 1951 hereinafter called the Trust Act). The two facts which I have already mentioned are not in dispute and no counter-affidavit has been filed on behalf of the respondents controverting any of the allegations which have been made in those writ application. Rather Mr. S.B.N. Singh, Government Pleader No. 2 appearing on behalf of the respondents stated on instruction that the levy of original stamp duty payable under the Act was not demanded from the petitioner on the sale deed presented for registration as the petitioner society is exempted from payment of any stamp duty but only two per cent on the value of the property intended to be transferred under the sale deed was demanded from the petitioner under Annexure '1' under Section 86(1) of the Trust Act.