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Stamp Act, 1899 – s.27– Andhra Pradesh Act (8 of 1988) –Proviso to s.27 added – Andhra Pradesh (Amendment) Act, 1971 –s.47A – Transfer of Property Act, 1882 – s.8 – ‘immovable property’–Exigibility of the plant and machinery to stamp duty under the Act –Second respondent auction purchased the property, at a bid ofRs.8.35 crores, consisting of land, building, civil works, plant &machinery and other assets – On the basis of direction given inC.A. No. 1203 of 2004 at the instance of the second respondent,the Official Liquidator was accorded permission to execute the saledeed in favour of the first respondent (nominee of the secondrespondent) – Sale deed executed in favour of the first respondent– Respondents 1 & 2 applied for registration of the sale deed onthe basis that the land and building had to be registered with thevalue thereof being shown as Rs.1,01,05,000/ – First appellantinformed the first respondent that due to some reasons registrationwas kept pending – Respondents 1 and 2 challenged the saidcommunication – Second appellant-District Registrar directed thefirst respondent and the Official Liquidator to deposit stamp dutybesides penalty – Writ petition filed by Respondents 1 & 2, SingleJudge of High Court remitted the matter to the second appellant –Division Bench inter alia directed the Sub-Registrar to consider therespondents’ request for registration of the lands and buildingspurchased by them and determine its value on the date ofpresentation of the document for registration, collect the stamp dutyand registration fees thereupon – Held: From a reading of the RecitalClause in conjunction with s.8, Transfer of Property Act, theintention of the parties become self-evident that the vendor intendedto convey, all things, which inter alia stood attached to the earth –Mere fact that there is no express reference to plant and machineryin the Recital Clause cannot mean that the interest in the plant and machinery which stood attached to the land, which was scheduled,was not conveyed to the first respondent – Sum of Rs.8.35 croreswas unambiguously indicated as the total sale consideration forthe asset sold to the first respondent, comprising of land, building,civil works, plant and machinery and current assets, etc – However,first respondent took out the value of the land, building and civilworks and shown it at Rs.10105000/-, indicating only the saidamount as value – This was to tide over the liability to stamp dutyfor what was actually, in law, conveyed to the first respondent –Effort of respondents 1 & 2 was to avoid payment of the stamp dutyas due in law – Division Bench erred in not noticing the true purportof the sale deed in conjunction with s.8, 1882 Act and definition ofthe word ‘immovable property – The sale deed operated to conveythe rights over the plant and machinery as well, which was comprisedin the land scheduled in the sale deed – In the nature of thetransaction, and what was actually sold by the Official Liquidator,plant and machinery, such as would answer the description ofimmovable property, must also be found part of the property for thepurpose of the stamp duty and other charges as per law – Firstrespondent is liable in law as vendee to pay the stamp duty –Impugned judgment set aside – Judgment of the Single Judgerestored subject to the modification that the direction to the secondappellant to give the benefit of GoMS dtd.07.02.2001 is set aside –Second appellant will ascertain the value of plant and machinery –It will also go into the question, whether the first respondent wouldbe entitled to the benefit of the exemption of stamp duty, etc., asclaimed and make available the exemption, if entitled in law –Registration Act, 1908 – General Clauses Act, 1897.Andhra Pradesh Amending Act (8 of 1988) – Proviso addedto s.27, Stamp Act, 1899; s.47A – Held: Proviso to s.27 does empowerthe Officer to inspect the property, make local inquiries in the facts,call for connected records, examine them and satisfy that theprovisions of s.27 are complied with – s.27 provides that theconsideration, if any, and the other facts and circumstances,affecting the chargeability of any instrument or the amount of duty,must be fully and correctly set forth – Equally, s.47A, empowers theRegistering Officer to deal with undervalued instruments. Transfer of Property Act, 1882 – s.8 – Held: s.8 declares thatin the absence of an express or implied indication, a transfer ofproperty passes to the transferee all the interests, which the transferorwas capable of passing in the property and in the legal incidentsthereof – Such incidents includes, inter alia, where the property island, all things attached to the earth – When the property ismachinery attached to the earth, the movable parts thereof also arecomprehended in the transfer. |
