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1 - 3 of 3 (0.37 seconds)Section 28A in Kerala Stamp Act, 1959 [Entire Act]
Rahim Baker vs Sub-Registrar And Ors. on 7 August, 2001
"15. The learned Government Pleader would argue
that the word 'value' appearing in Sec. 45B is the market
value and the District Collector is empowered to go into the
question whether the amount set forth in a document for
registration is less than the market value or not. Even by
stretch of imagination, such a meaning cannot be attributed to
the word 'value' made mention of in Section 45B of the Act.
There can be no quarrel against the proposition that the
registering officer shall always have the power to refer the
O.P.(C) No.488/10 & conn. cases 3
instrument to the Collector under Section 45B(1) if he has
reason to believe that the value or consideration has not been
truly set forth in the instrument. This Court in Rahim Baker
v. Sub Registrar (2001(3) KLT S.N.18, Case No.24) has held
that the parties cannot escape from the clutches of this
provision. Had it been the legislative intention to see that
stamp duty is levied on the market value, the same would
have been reflected in Section 45B. If the word 'value' which
appears in Section 45B is interpreted to mean as market
value, Section 28A of the Act would become redundant. The
legislature intended, that for the purpose of imposition of
stamp duty, a fair value has to be fixed. That is the reason
why Section 28A has been introduced. However, as
observed earlier, there may be circumstances where the
actual consideration passed would be more than the fair value
fixed under Section 28A. In such circumstances the parties
shall not be allowed to defraud the State Revenue by showing
a lesser value or consideration in the instrument. In order to
remedy such situations, powers are given under Section 45B
for a reference to the Collector. Section 45B also envisages
suo motu action by the Collector. That being the case, the
market value of the property cannot have any bearing on the
question. The material to determine whether stamp duty
levied is proper or not is the consideration which actually
passed. So, when a reference is made under Section 45B, the
Collector has to decide the true consideration which passed
O.P.(C) No.488/10 & conn. cases 4
by virtue of the document under consideration and if on such
enquiry, it is found that the true consideration which passed
is more than what is stated in the document, the District
Collector can levy duty. Under no circumstance the District
Collector can take into account the market value of the
property involved. Only on satisfaction that something more
than what was stated as consideration in the document has
passed from one party to other is the District Collector
justified in directing to pay additional stamp duty.
Assessment of stamp duty on the basis of market value is not
at all envisaged by the legislature and a direction to pay
stamp duty on the market value is incompetent as it is
without jurisdiction and is liable to be interfered with."
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