STATE OF RAJASTHAN Vs. BHILWARA SPINNERS LIMITED

JUDGEMENT

(1.) The appellant is the State of Rajasthan which challenged the order passed by the learned single Judge on 1-4-1998 in S.B. Civil Writ Petition No. 1480/97 (reported in 293) filed by respondent No. 1 M/s. Bhilwara Spinning Ltd. (for short, 'BSL') and respondent No.2 Mr. D.L. Birla, President and Shareholder of BSL, by which he allowed the writ petition and set aside the order dated 13th March, 1997 in case No. 65/97 raising a demand on account of deficiency in stamp duty and imposing penalty on the petitioner in relation to the instrument executed on behalf of the State of Rajasthan dated 25th March, 1988 and registered on 28th March, 1988 by the Collector (Stamps), Bhilwara.

(2.) The instrument, which is focus of attention to this appeal, reads as under :-

(3.) THE CONTROVERSY - Revenue contends it to be an instrument of conveyance of properties comprised in Bhilwara unit owned by Rajasthan Spinning and Weaving Mill Ltd. (RSWM) which includes plant, machinery buildings and fixtures along with lease hold rights in land on which factory is situated to respondent Bhilwara Spinning Ltd. hence Stamp Duty is payable as a conveyance ad valorem on entire value of the property comprising all the aforesaid assets and not as a document of lease as it reads.