IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) THURSDAY, THE TWENTY FIRST DAY OF FEBRUARY TWO THOUSAND AND EIGHT PRESENT THE HON'BLE MR JUSTICE N.V. RAMANA WRIT PETITION NO : 24813 of 2007 Between: Narayana Educational Institutions, A Society regd.under the provisions of the Societies reg Act,1860 Having its Office at 14-72,Harinandhapuram Nellore,A.P Rep.by Secretary Sri R.Koteswara Rao, S/o.Adisesha Rao, R/o.Hyderabad ..... PETITIONER AND 1 Superintendent of Poice, Vigilance and Enforcement, Vijayawada Unit, Vijayawada,A.P 2 Dist Registrar and Collector under Sec.41A of the Stamps Act, Govt of A.P, Registration and Stamps Department,Vijayawada,.AP .....RESPONDENT(S) Petition under Article 226 of the constitution of India praying that in the circumstances stated in the Affidavit filed herein the High Court will be pleased to issue an appropriate writ of Certiorari calling for the records more particularly one in the nature of writ of Certiorari calling for the records relating to the impugned order dt.8-10-2007 issued by the 2nd respondent and to quash the same as being illegal,arbitrary and violative of principles of natural jsutice and contrary to the provisions of the Indian Stamps act and consequently suspend the said order and to pass such futher or other orders Counsel for the Petitioner:MR.V.SUBRAHMANYAM Counsel for the Respondent No.: GP FOR REVENUE The Court made the following : THE HON'BLE MR JUSTICE N.V. RAMANA WRIT PETITION NO : 24813 of 2007 ORDER: This writ petition is filed questioning the proceedings dated 8.10.2007 of the second respondent provisionally determining the deficit stamp duty at Rs. 24,34,468/- and directing the petitioner to appear in person or through counsel on 22.10.2007 as illegal and arbitrary. The petitioner is a society registered under the provisions of the Societies Registration Act, and imparting education and training to the students in securing ranks in competitive examinations. For the said purpose, the petitioner society said to have obtained several premises for rent, including a premises at Benz Circle, Vijayawada. It is stated that at the time of obtaining the premises on rent, formal lease deeds were entered into and subsequently the owners of the rental premises and the petitioner society agreed not to act on such deeds and destroyed the same and agreed to act on oral lease. While so, the officers of the first respondent inspected the premises of the petitioner society at Benz Circle, Vijayawada and issued proceedings dated 25.6.2007 requesting the petitioner to furnish the lease particulars of the buildings taken on lease by the petitioner society. Thereafter, impugned proceedings dated 8.10.2007 were issued provisionally determining the deficit stamp duty at Rs.24,34,468/- and calling upon the petitioner to appear for enquiry in person or through counsel on 22.10.2007. Questioning the same, the present writ petition is filed contending that the first respondent has no right or authority under the Indian Stamp Act to demand and obtain copies of the instruments and the impugned notice dated 8.10.2007 , is illegal and arbitrary. A counter affidavit is filed by first respondent denying the allegations made in the writ petition and stating that to prevent the leakage of revenues to the Government, the first respondent is conducting enquiries with regard to payment of revenue in the form of stamp duty on lease agreements entered into by the educational institutions, commercial establishments and in the said process letter dated 25.6.2007 was issued to the petitioner society requesting to furnish the lease particulars of the buildings and sites taken on lease by it for running their educational institutions and the same was provided by the authorized signatory of the petitioner society. It is further stated that on verification of the lease agreements submitted by the petitioner, it was noticed that 19 lease agreements were executed on Rs.100/- non judicial stamp papers and the same were not registered in accordance with provisions of section 17 of the Indian Stamp Act, by paying requisite stamp duty in terms of Article 31 (a) ( C ) of Schedule –I-A of the Indian Stamp Act. As such notice dated 8.10.2007 was issued to the petitioner society requesting to appear in person or through counsel on 22.10.2007 and pay the deficit stamp duty of Rs.24,34,468/-. A counter affidavit is also filed on behalf of the second respondent inter alia contending that the present writ petition is filed challenging the notice dated 8.10.2007, requesting to appear in person or through counsel on 22.10.2007 to put forth its objections and without submitting its objections, if any, the petitioner society has rushed to this Court by filing the present writ petition and the same is not maintainable. It is also stated that the notice dated 8.10.2007 is issued on verification of the documents submitted by the petitioner and the same cannot be termed as illegal. Heard the learned counsel for petitioner and learned Government Pleader for Revenue. Even though the impugned order is in the form of a show cause notice, in that it calls for objections of the petitioner, a reading of the same would disclose that the same is in the nature of a final order, in that it not only determined the deficit stamp duty payable by the petitioner, but also demanded him to pay the same. The learned Government Pleader for Revenue admitted that the impugned order is in the nature of a final order. He, however, submitted that the impugned order be treated as a show cause notice, and the petitioner be directed to show cause as to why the deficit stamp duty should not be collected from him. In view of the above stand taken by the learned Government Pleader for Revenue, I deem it appropriate to dispose of the writ petition with the following directions: The impugned order is treated as a show cause notice to the petitioner, and the said order to the extent of determining the deficit stamp duty payable by the petitioner and directing him to pay the same, is set aside. The petitioner is directed to submit his explanation to the show cause notice, and upon the petitioner submitting his explanation, the 2nd respondent shall consider the same and pass appropriate orders, and if the petitioner is found and liable to pay any deficit stamp duty, he may call upon the petitioner to pay the same. With the above directions, the writ petition is disposed of. ____________ N.V.RAMANA,J DATE: 21.2.2008 TVK/ksr ..... REGISTRAR // TRUE COPY // SECTION OFFICER To 1 Superintendent of Police, Vigilance and Enforcement, Vijayawada Unit, Vijayawada,A.P 2 Dist Registrar and Collector under Sec.41A of the Stamps Act, Govt of A.P, Registration and Stamps Department,Vijayawada,.AP 3.2CCs to 4.2CD copies Form-NIC-OGS/WP{BMR} THE HON'BLE MR JUSTICE N.V. RAMANA WRIT PETITION NO : 24813 of 2007 Date: 21.2.2008