SHIVANI ENCLAVES PVT LTD Vs. STATE OF RAJASTHAN

JUDGEMENT

(1.) THE petitioners in the present case are praying to declare the Notification F2 (8) FD/tax Div. /96 dated 14. 3. 1997 and Notification No. F2 (3)FD/gr. IV/93/1/98 dated 7th of March, 1994 (Annexure 5 and 6), issued by the State of Rajasthan in exercise of powers conferred under Section 78 of the Indian Registration Act, 1908 (hereinafter referred to as the `act'), as ultravires with further direction to the State to refund the amount of Rs. 10,24,280. 00, recovered from the petitioners as registration charges vide receipt dated 15. 05. 1997, alongwith interest and further a direction to the respondents not to charge the registration fee as per Notification dated 14th of March, 1997, on the document which has been submitted for the purposes of registration before the registering authority.

(2.) THE petitioners had purchased the property known as Food Catering Institute Building, M. I. Road, Jaipur, from the State of Rajasthan by way of auction held under the Rajasthan Nazul Building (Disposal by Public Auction) Rules, 1971. Being the highest bidders of the property in question for the bid of Rs. 22,601/- per sq. meter, the petitioners' bid was accepted. THE sale was confirmed by the Government on 14th of December, 1996. THEy are said to have deposited the amount of Rs. 10,24,27,732. 00 with the Government Treasury. In pursuance of the said auction and in consideration as purchasers, a sale deed was executed on 15. 05. 1997, between the Governor of the State of Rajasthan and the petitioners vide Annexure 1. THE petitioners has also got a stamp affixed worth Rs. 61,45,670/- on the registered deed. THE deed was presented for registration. A demand was made by the Sub-Registrar for a sum of Rs. 10,24,280/- as registration charges and Rs. 270/- as other charges, totalling to Rs. 10,24,555. 00. THE amount was paid by the petitioners vide receipt Annexure 2. THE Sub-Registrar had demanded the said amount as registration charges at the rate of 1% of the total sale consideration as per notification dated 14th of March, 1997, issued by the State of Rajasthan (Annexure 6 attached with the writ petition), exercising the powers conferred under Sec. 78 of the Act w. e. f. 1. 4. 1997. THE petitioners are aggrieved against collection of the said registration charges to the tune of Rs. 10,24,280. 00 on the said sale deed being violative of Article 265 of the Constitution of India and the Act and Rules framed thereunder by the Government of Rajasthan and pray that the same be declared ultravires by powers conferred under Section 78 of the Act.

(3.) IT is the submission of the counsel that there is no difference in the service which the registration office renders in the matter of lease deeds or sale deeds or other deeds which are compulsorily registerable and, therefore, the registration fee at the rate of 1% on the value is discriminatory, arbitrary and in violative of the Article 14 of the Constitution of India. IT is also one of the submission that as a matter of fact, there is neither substantial increase in the man power nor there is any substantial increase in the office establishments, rather, there is a substantial increase in number of documents which are presented for registration and more revenue has to be paid to the State Exchequer than the entire expenses of the registration establishment and in the year 1997, the registration charges far exceeded the expenses incurred in the registration department. The petitioners submit that Notification No. F. 2 (8)Tax. Div/96 dated 14. 03. 1997 and Notification No. F/2 (3) FD/gr. IV/93 dated 7th of March, 1994, are ultravires the provisions of the Registration Act 1908 and are violative of Article 265 of the Constitution of India on the ground that as per the provisions of Section 78 of the Registration Act, the fee must have an element of quid pro quo.