Karnataka High Court
New Horizon Educational And Cultural ... vs The Senior Sub Registrar on 2 December, 2021
Author: Krishna S.Dixit
Bench: Krishna S.Dixit
1
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 2ND DAY OF DECEMBER, 2021
BEFORE
THE HON'BLE MR. JUSTICE KRISHNA S.DIXIT
WRIT PETITION NO.8500 OF 2020 (GM-ST/RN)
BETWEEN:
1. NEW HORIZON EDUCATIONAL AND CULTURAL TRUST,
100 FT. ROAD, HAL II STAGE,
INDIRANAGAR, BENGALURU - 560 038.
REP. BY ITS TRUSTEE,
SMT. RENUKA MANGHANANI.
2. NEW HORIZON EDUCATIONAL & RESEARCH TRUST,
NO.140, GANAPATHI NIVAS,
4TH MAIN, DEFENCE COLONY,
BENGALURU - 560 038.
REP. BY ITS MANAGING TRUSTEE
MR. MOHAN MANGHANANI.
...PETITIONERS
(BY SRI. UDAYA HOLLA, SENIOR COUNSEL FOR
SRI. VIVEK HOLLA, ADVOCATE)
AND:
1. THE SENIOR SUB-REGISTRAR,
BIDARAHALLI,
BENGALURU - 560 049.
2. THE DISTRICT REGISTRAR,
SHIVAJINAGAR, REGISTRATION DISTRICT,
4TH FLOOR, NO.122/2,
"MONARCH CHAMBERS",
INFANTRY ROAD,
BANGALORE - 560 001.
3. INSPECTOR GENERAL OF REGISTRATION AND
COMMISSIONER OF STAMPS,
8TH FLOOR, KANDAYA BHAVAN,
K G ROAD, BANGALORE - 560 009.
2
4. STATE OF KARNATAKA,
REP. BY ITS PRINCIPAL SECRETARY,
REVENUE DEPARTMENT,
VIKASA SOUDHA,
BENGALURU - 560 001.
...RESPONDENTS
(BY SRI. SRIDHAR HEGDE, HCGP)
THIS WRIT PETITION IS FILED UNDER ARTICLES 226 &
227 OF THE CONSTITUTION OF INDIA PRAYING TO DECLARE
THAT STAMP DUTY PAYABLE ON A TRANSFER OF TRUST
PROPERTY FROM ONE CHARITABLE TURST TO ANOTHER
CHARITABLE TRUST LIKE THE PETITIONERS HEREIN IS RS.1000
AND ETC.,
THIS PETITION COMING ON FOR PRELIMINARY HEARING,
THIS DAY, THE COURT MADE THE FOLLOWING:-
ORDER
The short grievance of the petitioners is to the wrong levy of Stamp Duty payable in respect of the instrument in question whereby one charitable trust transfers its property to the other. The answering respondent has refused to accept the presentation of the documents in question for registration stating that they have to be treated as the instruments of ordinary conveyance attracting levy of stamp duty ad valorem in terms of relevant article of the Schedule to the Karnataka Stamp Act, 1957.
2. The respondents having entered appearance through the learned HCGP resist the Writ Petition making 3 submission in justification of the stand taken up by the answering respondent.
3. I have heard learned counsel for parties and I have perused the petition papers and also the decisions cited at the bar; the question of rate of levy of duty on the instruments of the kind is no longer res integra; a Co-ordinate bench of this Court in W.P.No.29645/2010 between RASTROTHANA TRUST vs. DISTRICT REGISTAR AND OTHERS decided on 05.01.2018 has answered the said question with the following observations:
6. At the outset, it is to be taken note that the document in question is dated 05.01.2004 and in that view, the provision providing for stamp duty as contained in the schedule prior to the subsequent amendment which was made on 01.04.2011 would have to be taken into consideration. The provision as contained in Article 52(d) of the Stamp Act would provide that in respect of a transfer, with or without consideration of any Trust property from the Trustee to another Trustee or from a Trustee to a Beneficiary, the stamp duty at Rs.200/-.
It needs to be mentioned that Article 52(d) has undergone change vide Karnataka Act No. 16 of 2011 w.e.f from 1.4.2011 wherein wherein Rs. 200/- is substituted by Rs.1000/-. 4
4. It has been observed by the Apex Court that the law relating to stamp duty is a fiscal legislation and therefore its provisions ordinarily have to be construed strictly and beneficially to the rate payers, unless there is a contra indication vide M/S NN Global MERCHANTILE vs. M/S INDO UNIQUE FLAME 2021 SCC Online SC 13; a citizen cannot be taxed more than what is authorized by law vide Article 265 of the Constitution of India.
In the above circumstances this Writ Petition succeeds; the answering respondent shall accept the presentation of the document in question for registration if it is otherwise admissible and levy a fixed stamp duty of Rs.1,000/- (Rupees One Thousand) only in terms of article 52(d) of the 1957 Act.
Costs made easy.
Sd/-
JUDGE cbc