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"27. Facts affecting duty to be set forth in instrument -- (1) The consideration, if any, the market value of the property and all other facts and circumstances affecting the chargeability of any instrument with duty or the amount of the duty with which it is chargeable, shall be fully and truly set-forth therein.

(2) In the case of instruments relating to immovable property chargeable with an ad valorem duty on the market value of the property, and not on the value set forth, the instrument shall fully and truly set forth the annual land revenue in the case of other immovable property, the local rates, municipal or other taxes, if any, to which such property may be subject, and any other particulars which may be prescribed by rules made under this Act."

Entry No. 23 in Schedule I to the Act which deals with conveyance prior to its amendment by M.P. Act No. 8 of 1975 inter alia provides the mode of calculation of stamp duty treating "the amount or value of the consideration for such conveyance as set forth therein." A'fter its amendment by M.P. Act No. 8 of !975, it inter alia provides "23. Conveyance, not being a transfer charged or exempted under No. 62 where the market value of the property which is the subject matter of conveyance does not exceed....." It is thus apparent that prior to amendment of Entry No. 23 aforesaid by M.P. Act No. 8 of 1975 the amount or value of the consideration for such conveyance as set forth in the deed of conveyance constituted the basis for determining the stamp duty payable. The basis after the amendment is the market value of the property which is the subject matter of conveyance.

On a conspectus of these authorities it is, therefore, apparent that in the exercise of powers conferred on it by Entry 63 of List II and Entry 44 of List III, it was open to the State Legislature not only to make an amendment in the Act in regard to the rates of stamp duty but also in regard to the mode of computation of stamp duty. In other words, it was open to the State Legislature to lay down that the basis for computing stamp duty shall not be the amount or value of the consideration for the conveyance as set forth therein but it shall be the market value of the property which is the subject matter of conveyance.

"We agree with him that stamp duty is a duty on an instrument as defined in the Stamp Act, and that this concept as to the character of the duty is in accordance with the British and Indian Legislative practice, and the scope of Entry 44 of List III of the Seventh Schedule to the Constitution, to wit 'stamp duty other than the duties or fees collected by means of judicial stamps but not including rates of stamp duty.' But we cannot agree with him that the substitution made by the Amending Act has altered the character of the duty. While stamp duty is a charge on the instrument which by itself is the taxable event, the measure of charge may be fixed or ad valorem. Chargeable event which is an instrument, as defined in the Act and described in the first column of the First Schedule to the Act, is not to be confused or mixed up, or identified with the measure of duty, which is indicated in the second column of that Schedule. Section 3 of the principal Act, which is the charging section makes this clear, that is what attracts liability to duty is the instrument of the particular description, the charge is on the instrument, not on the consideration or amount indicated in the document which is but a measure of, or the basis for computation of the extent of liability to stamp duty. The section says that every instrument mentioned in the Schedule, subject to exemptions or exceptions, shall be chargeable with duty of the amount indicated in that Schedule as the proper duty therefor. Liability to duty is on the instrument, and its quantum depends on its description as well as the measure indicated in the First Schedule to the Act. To illustrate, an acknowledgment attracts stamp duty as an instrument, and for an instrument of that character or description, the proper stamp duty is fixed as 15 p. Conveyance in Entry 23 of the Schedule attracts duty as an instrument of conveyance, but the proper stamp duty is measured on the amount of value of the consideration for such conveyance as set forth therein, which works out on a slab basis. Section 27 of the principal Act requires facts affecting duty to be set forth in the instrument. If the value of the property is understood, Section 64 makes it an offence punishable with fine. But on that account an instrument will not become void, nor is it rendered inadmissible in evidence. The Amending Act, in order to check evasion, required by the substitution complained against, market value to be mentioned in the instrument of conveyance, gift, or partition as the basis for measure of the extent of liability, or quantum of stamp duty with which such instrument is chargeable, and provides for determination of the true market value where it is suspected to be understated, and right of appeal to Court by an aggrieved party. We are clearly of opinion that the amendment to that effect has not shifted the chargeable event from an instrument to market value, and the duty after the Amending Act is still on the instrument, and not on the market value any more than consideration mentioned therein. We hold that the Amending Act is within the competence of the State Legislature."