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Showing contexts for: section 47 a stamp act in M/S.Sri Balaji Fibre vs The Inspector General Of Registration on 23 July, 2024Matching Fragments
37. However, the other Division Bench in the case of P.M. Associates v. IFCI Limited reported in (2013) 8 Mad LJ 1 held that sale certificate issued under SARFAESI Act is not exempted under 17(2)(xii) of the Registration Act, since, the same was not issued by a Revenue or Civil Officer. Other Division Bench in the case of Inspector General of Registration v K.K Thirumurugan reported in 2015 1 CTC 526 held that the provisions of Section 47-A cannot be applied to an auction sale under the SARFAESI Act, 2002. However, the another Division Bench of this Court in the case of Inspector General of Registration v Kanagalakshmi Ganagaru reported in (2017) 2 CWC 780 has held that a sale certificate under the SARFAESI Act, 2002 was amenable to https://www.mhc.tn.gov.in/judis Section 47-A of the Stamp Act, 1899.
64. The above provision makes it clear that only when the property is https://www.mhc.tn.gov.in/judis transferred inter vivos, the same will come within the ambit of conveyance. As far as the sale certificate issued by the authorised officer is concerned, as discussed above, sale is only by operation of law not by transfer inter vivos. Therefore, stamp duty is payable only for conveyance. In such cases, 5% duty alone is payable, that too on the purchase money only. Therefore, invoking provisions under Section 47-A of Indian Stamp Act by the authorities for the registration of sale certificate is not permissible under law. Section 47-A can only be invoked when the registrar has reason to believe that the market value of the property of which is the subject matter of conveyance [exchange, gift, release of benami right or settlement] has not been truly set forth in the instrument, executed inter vivos not on the instrument by operation of law, when specific provision made under Stamp Act to levy duty on sale certificate under Article 18 of the Stamp Act, duty can be levied strictly according to that provision alone. Therefore, this Court is of the view that the authorities cannot treat the sale certificate as transfer by inter vivos for referring the instrument under Section 47-A of the Stamp Act, since, the sale certificate is not a transfer by act of parties rather it is by operation of law, i.e., compulsory sale.
65. Only when there is a transfer by inter vivos and the registrar has reasons to believe that the market value of the property of which is the subject https://www.mhc.tn.gov.in/judis matter of conveyance has not been truly set forth in the instrument, he may, after registering such instrument, refer the same to the Collector for determination of the market value of such property. Admittedly, as far as the sale certificate issued by the authorised officer is concerned is not transfer by inter vivos. It is not a voluntary transfer or it is not a transfer by act of parties, it is a transfer by the operation of law. The authorised officer under the SARFAESI Act or any other Act by force of law makes a compulsory sale, such sale cannot be construed as a transfer by inter vivos, it is only a transfer by operation of law. Therefore, this Court is of the view that Section 47-A of Stamp Act cannot be invoked. When the sale certificate issued by the authorised officer is presented for registration by the parties, the duty liable only on the purchase money as per Article 18 of the Stamp Act.
Description of Amount on which duty
instrument should be levied.
(i) Sale of immovable The market value of the
property. property as set forth in the
instrument, and in a case
where the market value is
finally determined by any
authority under Section
47-A of the Stamp Act, the
market value as so
determined by such
authority.
(ii) Exchange of The market value of the
immovable property property of the greater
value as set forth in the
instrument, and in a case
where the market value is
finally determined by any
authority under Section
47-A of the Stamp Act, the
market value as so
determined by such
authority
iii) Gift of immovable The market value of the
property property as set forth in the
instrument, and in a case
where the market value is
finally determined by any
authority under Section
47-A of the Stamp Act, the
market value as so
determined by such
https://www.mhc.tn.gov.in/judis
authority.
(iv) Mortgage with The amount secured by the
possession of immovable mortgage, as set forth in
property. the instrument.
(v) Lease in perpetuity of An amount equal to one-
immovable property sixth of the whole amount
or value of the rents which
would be paid or delivered
in respect of the first fifty
years of the lease, as set
forth in the instrument