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"[47-A. Under-valuation of the instrument. -
(1) (a) If the market value of any property which is the subject of any instrument, on which duty is chargeable on the market value of the property as set forth in such instrument, is less than even the minimum value in accordance with the rules made under this Act, the registering officer appointed under the Registration Act, 1908, (Act no. 16 of 1908), notwithstanding anything contained in the said Act, immediately after presentation of such instrument and before accepting it for registration and taking any action under Section 52 of the said Act, require the person liable to pay stamp duty under Section 29, to pay the deficit stamp duty as computed on the basis of the minimum value determined in accordance with the said rules and return the instrument for presenting again in accordance with Section 23 of the Registration Act, 1908.
"7. Procedure on receipt of a reference or when suo motu action is proposed under Section 47-A. (1) On receipt of a reference or where action is proposed to be taken suo motu under Section 47-A, the Collector shall issue notice to parties to the instrument to show cause within thirty days of the receipt of such notice as to why the market value of the property set forth in the instrument and the duty payable thereon be not determined by him.
(2) The Collector may admit oral or documentary evidence, if any, produced by the parties to the instrument and call for and examine the original instrument to satisfy himself as to the correctness of the market value of the subject matter of the instrument and for determining the duty payable thereon.

Having extracted the relevant statutory provisions above, the following principles emerge therefrom. Sub-section (1) (a) of Section 47-A of the Act empowers the registering officer to call upon the person who has presented an instrument for registration to pay deficit stamp duty. This power is exercisable by the registering officer immediately after presentation of an instrument and before accepting it for registration and taking any action under Section 52 of the Act. This power is liable to be exercised in a situation where the market value of the property as set forth in the instrument is less than even the minimum value fixed by the Collector in accordance with the rules made under the Act. In distinction to the above, the power under sub-section (3) of Section 47-A is exercised by the Collector either suo motu or on a reference from any Court or from the Commissioner of Stamps or an Additional Commissioner of Stamps, Deputy Commissioner of Stamps, an Assistant Commissioner of Stamps or any officer authorized in that behalf by the State Government. This power confers jurisdiction and authority on the Collector to call for and examine any instrument for the purpose of satisfying himself as to the correctness of the market value of the property which forms the subject matter of the instrument and if upon such examination, he has reason to believe that the market value of such property has not been truly set forth in such instrument, he may proceed to determine the market value of such property and the duty payable thereon. The first distinguishing feature of sub section (3) is that it is available to be exercised even after the instrument has been registered. Secondly the Collector proceeds under sub section (3) upon finding that the "market value" of the property has not been truly set forth in the instrument as distinct from the "minimum value fixed by the Collector in accordance with the rules made under the Act" which is the benchmark for initiation of action under sub section (1).

The manner in which the power under sub-section (3) of Section 47-A of the Act is to be exercised stands encapsulated in rule 7 of the Rules. Sub-rule (1) thereof enjoins the Collector to issue notice to the parties to the instrument to show cause as to why the market value of the property set forth in the instrument and the duty payable thereon be not determined by him. The notice to show cause comes to be issued by the Collector on receipt of a reference or where action is proposed to be taken suo motu, of course, upon being satisfied that the market value of the property comprised in the instrument has not been truly set forth. In terms of sub-rule (2), the Collector is empowered to call for and examine the original instrument to satisfy himself as to the correctness of the market value of the subject matter of the instrument and for determining the duty payable thereon. In terms of the provisions of sub-rule (3), the Collector is empowered to call for any information, examine and record the statement of any public officer, or authority and inspect the property after due notice to the parties to the instrument. Sub-rule (4) mandates that after examining the record and other evidences, the Collector shall proceed to determine the market value of the subject matter of the instrument and the duty payable thereon. In terms of sub-rules (5) and (6), if as a result of such enquiry, the market value is found to be fully and truly set forth in the instrument and adequate duty paid thereon, the same is liable to be returned to the person who made the reference with a certificate to that effect. If as a result of enquiry, the instrument is found to be undervalued and not duly stamped, further action is liable to be taken in accordance with the relevant provisions of the Act.