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(3) The Collector may suo motu, within two years from the date of registration of any instrument of conveyance, (exchange," gift, release of benami right or settlement) not already referred to him under sub-sec. (1), call for and examine the instrument for the purpose of satisfying himself as to the correctness of the market value of the property which is the subject matter of conveyance, (exchange, gift, release of benami right of settlement) and the duty payable thereon and if after such examination, he has reason to believe that the market value of the property has not been truly set forth in the instrument, he may determine the market value of such property and the duty as aforesaid in accordance with the procedure provided for in sub-sec. (2). The difference, if any, in the amount of duty, shall be payable by the person liable to pay the duty :

9. The validity of this provision came up for consideration before a Division Bench of this Court in State of Tamil Nadu v. Chandrasekaran, . Of course, the validity was challenged on the ground that the provisions of S. 47-A of the Act were hit by Arts. 14 and 19(1)(f) of the Constitution. While dealing with the contentions based on Arts. 14 and 19(1)(f) of the Constitution, the Division Bench has observed thus (at page 118 of AIR) :--

"We agree with him that stamp duty is a duty on a 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 in List III of the Seventh Schedule to the Constitution "Stamp duties 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, nor on the consideration or amount indicated in the document which is but a measure of, or the basis for compulation of the extent of liability to stamp duty. The section says that every instrument mentioned in that 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 acknowledgement attracts stamp duty as an instrument of conveyance, but the proper stamp duty is fixed as 151 NP. Conveyance in Entry 23 of the Schedule attracts duty as an instrument of conveyance, but the proper stamp duty is measured on the amount or 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 understated, S. 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, requires, 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, with right of appeal to Court by the aggrieved party. We arc 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.

14. In Collector of Nilgiris v. M/s. Mahavir Plantations Pvt. Ltd., Section 47-A of the Stamp Act came up for consideration. It was held thus at page 143 :--

"The valuation guidelines prepared by the Revenue Officials at the instance of the Board of Revenue were a vowedly intended merely to assist the Sub Registrars to find out, prima facie, whether the market value set out in the instruments has been set forth correctly. The guidelines were not intended as a substitute for market value or to fore close the inquiry by the Collector which he is under a duty to make under Section 47-A. The valuation guidelines were not prepared on the basis of any open hearing of the parties concerned or, any documents. They were based on date gathered broadly with reference to classification of lands, grouping of lands and the like. This being so, the Collector acting under Section 47-A cannot regard the valuation guidelines as the last word on the subject of market value. To do so would be to surrender his statutory obligation to determine market value on the basis of evidence, which is a judicial or a quasi judicial function which he has to perform."

This decision also docs not deal with the point involved in the case on hand.

27. Learned Government Pleader also relied on the decision of this Court in R. Thiagasundaram v. State of Tamil Nadu, , in which it has been held that the value as accepted by the Civil Court is not binding on the Registering Officer. However, this is the circumstance to be taken into consideration. We are not resting our decision on the ground that value mentioned in the agreement is accepted by Civil Court. We are of the view that the transaction in question does not suffer from lack of bona fide and that there are no reasons to believe that the true value of the property is not set forth in the document.