Introduction:

In a landmark legal decision, the Gujarat High Court delivered a ruling on the imposition of stamp duty on property transactions. The case, Deputy Collector & Anr. Versus Meera S. Desai & Anr, centered on the issue of whether stamp duty can be levied twice on the same sale consideration for the transfer of immovable property. Meera Desai contested a demand for additional stamp duty payment, arguing that the duty had been fully paid upon purchasing land in Vadodara. The court’s ruling, delivered by Chief Justice Sunita Agrawal and Justice Aniruddha Mayee, dismissed the government’s appeal, offering significant relief to those facing similar challenges.

Arguments:

The appellant, the stamp duty authority, contended that additional stamp duty was owed due to a shortfall in payment. They argued that the agreement to sell, registered in 2004, did not cover subsequent conveyances, necessitating stamp duty payment upon execution of the sale deed in 2005. Meera Desai and the other respondents countered that full stamp duty had been paid during the registration of the agreement to sell, which included provisions for subsequent conveyances. They invoked Section 32A of the Gujarat Stamp Act, asserting that the demand for additional duty was time-barred.

Court’s Judgement:

The division bench affirmed the earlier ruling, emphasizing that stamp duty cannot be levied twice on the same transaction. Citing Article 20(cc), Explanation 1, the court upheld that stamp duty paid during the execution of the agreement to sell covers subsequent conveyances, such as the sale deed. The court criticized the administrative delay in filing the appeal and rejected the appellant’s arguments, concluding that no merit existed in levying stamp duty on the sale deed.