STATE OF RAJASTHAN Vs. INDUS TOWER LTD.

JUDGEMENT

(1.) These appeals have been heard analogously as they arise out of common order dtd. 26/9/2018 passed by the learned Single Judge in batch of writ petitions filed by the appellant-State against common respondents and as these appeals involve identical issues of facts and law for determination, they are being decided by this common judgment.

(2.) The undisputed facts giving rise to filing of writ petitions by the State and as stated in the writ petitions as also in the impugned order are that identical lease deeds were executed in favour of the respondent-Indus Tower Limited by the respective land owners all over the State of Rajasthan. The lease deeds contained identical stipulation that the property in question was being leased out to the respondent-Indus Tower Limited being a registered infrastructure provider, indulged in the business of establishing multi-tenant towers for a range of wireless communication industries including PCS cellular ESMR, SMR, paging and fixed microwave as well as radio and television broadcaster. While the period of lease deeds was fixed at 19 years and 11 months, as regards the security deposit, it was stipulated in all the lease deeds that the same would be refundable and shall be returned to the lessee in the event of termination/expiration of the lease pursuant to lease deed. Further stipulation was that the deposit would be reimbursed on the expiry of the lease term and upon vacant possession of the leased premises being handed over to the lessor in good condition and subject to normal wear and tear, after deducting therefrom such amount as may be due and payable by the lessee to the lessor. Clause 4.5 of the lease deed further provided that the security deposit could be adjusted if any lease rent is due from the period of notice served for termination of the lease deed in accordance with the terms and conditions of the agreement. The documents were presented for registration and the same were received @ 2% of the yearly rent accepting the calculation made by the parties. However, when the lease deeds were examined in the Office of the Auditor General, during inspection, an objection was raised that the lease deeds were wrongly stamped and deficit stamp duty was to be charged from the parties. It is further revealed from the records that the Finance Department advised the Stamp Department to take action in this regard opining that lease deeds in which advance amount, i.e., premium, fine, development fee or security deposit is determined, then it would be liable to be stamped on the basis of total consideration at the rate of conveyance on the basis of Article 33(c)(i) of the Rajasthan Stamp Act, 1998 (for short 'the Act of 1998-). A case was set up that the stamp duty was wrongly calculated by the concerned Sub-Registrar applying the exemption notification dtd. 5/3/2003, which has become redundant/ defunct with the coming into force of the Act of 1998 with effect from 27/5/2004 and that the stamp duty was liable to be calculated on the rate applicable to conveyances as mentioned in Article 33(c)(i) of the Act of 1998. On the strength of these audit objections, references were made to the Collector (Stamps), who decided the same in favour of the revenue by different orders.

(3.) The Tax Board remanded the matters to the Collector (Stamps), who again decided the same holding that the lessees were not entitled to benefit of exemption provided under notification dtd. 5/3/2003. Thereafter, the matters were carried by the respondent-Indus Tower Limited to the Tax Board, which decided the revision petitions in its favour by common judgment dtd. 4/10/2017.