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6.The Indian Stamp Act, 1899 is a fiscal enactment charging stamp duty on instruments of various kinds, under which dutiable instruments are classified under Schedule I. For each class of instrument, rate or rates of stamp duty payable thereof have been prescribed. The stamp duty payable on the date of conveyance is on the ad valorem basis, on the value as set forth in the instrument, as was originally enacted. However, from 1968 onwards, there has been a different basis of charge in this state, on conveyance of immovable properties. According to the present system, stamp duty is payable on the guideline value of the property, which is the subject matter of conveyance. The deeds or documents are being registered under the Indian Registration Act, 1 908. The effect of registration is a notice to all the public.

19.It is contended that the guideline value is not the final value and it is not a substitution for market value. It has been pointed out that the guideline value is only a tool to find out prima facie whether the market value set forth in document is correct. It is contended that guideline value is revised only on the basis of the registration done, growth rate, higher values already recorded, geographical conditions, use of the land and value ascertained by the oral enquiry etc. It is contended that the guideline value is not revised or enhanced arbitrarily and as customary. The guideline value is merely a tool to find out prima facie whether the market value set forth is correct. The entries made in the Guideline Register cannot be a substitute for market value and it is the duty of the registering officer to collect stamp duty on the market value of the property, which is the subject matter of conveyance. But he cannot go out of office to verify the correctness of the value stated in the instrument. If the value of the property is not revised, it will not definitely reflect the real and true value of the property. If the registering officer feels and suspects the value stated in the document is not truly set forth, it is his utmost duty to prevent the leakage of the legitimate revenue to the State and he cannot compel the registrants to accept the value noted in the Guideline Register supplied to him for his reference, but he can refer the document to the Collector under Section 47-A of the Act.

21.It is incorrect to contend that the guideline value is revised or enhanced by a flat rate. Guideline register is the register merely to assist the registrar to know the market value of the property and no request of the petitioner or other persons interested being afforded an opportunity before preparation of Guideline Register or revision of the rates from time to time can be complied with.

22.It is pointed out that there is a tendency among the public to evade payment of stamp duty, they deliberately undervalue the property conveyed. This necessitated the preparation of Guideline Register and supplying the same to the registering officer to find out prima facie whether the document has been correctly valued. It is not compulsory for the registrar to accept the guideline value and if the registering officer finds that there is a prima facie undervaluation of the property with reference to guideline value and had reason to believe that the value is not truly set forth, he may refer the same for determination of market value. If the value of the property could not be found out by the registrar and the public in general also fail to set forth the real value of the property conveyed, it is the duty of the registering officer to find out the real and true market value of the property.

"The guidelines may constitute sufficient material for the registering authority to entertain a plea that the true market value had not been set forth in the document. But it cannot be a substantive evidence against the petitioner". Earlier in the judgment, the learned Judge had given the background to the preparation of valuation guidelines register in 1968. In that connection, the learned Judge observed-
"Thus, it will be seen that the valuation guidelines have not been prepared after notice to the owners of the land concerned. It has been prepared with reference to the classification of the land as wet, dry of manavari, tharam and sort and these were again further grouped with reference to their situation (sic). In the nature of things, therefore, these guidelines have an evidenciary value. They are only intended to give an information or instruction to the registering authorities so as to enable them to come to a reasonable belief within the meaning of S.47-A (1), that the market value of the property which is the subject-matter of conveyance has or has not been truly set forth in the document. After a reference is made, the Collector has to determine the market value with reference to the Explanation in S.47-A."