THE HON’BLE MR JUSTICE L. NARASIMHA REDDY Writ Petition No.17369 of 2009 ORDER: The petitioner is a limited company. It had an arrangement with the Visakhapatnam Urban Development Authority (for short ‘VUDA’), for the purpose of development of a township, at Vepagunta, over an extent of Ac.55.15 cents. To carry out that project, an agreement was entered into between VUDA and the petitioner, on 31-03-2007. The document constituted a Development Agreement, as well as General Power of Attorney. It was engrossed on stamp papers of Rs.50,100/-, and the same was presented for registration before the 3rd respondent. A doubt was entertained as to the adequacy of the stamp duty. Therefore, he referred the matter to the 2nd respondent. The latter, in turn, issued proceedings dated 18-07-2007, holding that the document is chargeable with stamp duty, of Rs.3,14,55,600/-, and there is deficit of Rs.3,14,05,500/-. He also levied penalty of Rs.85,94,500/-, and in all, he insisted on payment of Rs.4 crores. The said memo is challenged in this writ petition. Sri D. Prakash Reddy, learned Senior Counsel appearing for the petitioner, submits that the transaction is squarely covered by the G.O.Ms.No.1475, dated 30-07-2005, and a stamp duty of Rs.50,000/-, paid thereon is sufficient. He contends that the 2nd respondent placed a totally distorted interpretation upon the document, as well as relevant provisions of law, and the impugned memo is not sustainable in law. Learned Government Pleader for Revenue, on the other hand, submits that the 2nd respondent has taken various aspects into account, and passed a reasoned order. He contends that, if the petitioner feels aggrieved, he has to avail the other remedies. The document presented by the petitioner is, in the form of Development Agreement-cum-G.P.A. If Article 42(e) of Schedule I-A of the Indian Stamp Act, 1899 (for short ‘the Act’) is applied to it, 5% of the minimum guaranteed amount and development becomes payable. The minimum guaranteed amount was taken as Rs.62,40,00,000/-, and project development fee Rs.43,12,000/- was added to it. 5% of the aggregate was calculated at Rs.3,14,55,600/-. The 2nd respondent, however, did not take into account, the notification issued by the Government of A.P., in exercise of power under Section 91(e) of the Act, through G.O.Ms.No.1475, dated 30-07-2005. The operative portion of the notification reads as under: “In exercise of the powers conferred by clause (a) of sub-section (1) of Section 9 of the Indian Stamp Act, 1899 (Central Act II of 1899), the Governor of Andhra Pradesh hereby reduces the Stamp Duty payable under Article 6(B) of Schedule I-A of the Indian Stamp Act, 1899, in respect of documents relating to Agreements or Memoranda of Agreements of sale or construction/development of immovable properties combined with General Power of Attorney clause to 1% on the sale consideration or estimated cost of construction/development, as declared by the parties in the document, subject to a maximum of Rs.50,000/- on the condition that the stamp duty so paid shall not be adjustable at the time of registration of consequent sale deeds in pursuance of such Agreements/cum-General Power of Attorney registered under the Registration Act, 1908”. Even the respondents 2 and 3 do not dispute the classification of the document. It is a Development Agreement-cum-G.P.A. It squarely fits into the notification. Whenever any stamp duty is levied on an agreement of sale, it is liable to be adjusted, as and when the sale deed is executed. By providing a special facility, by restricting the amount of Agreement of Sale-cum-G.P.A. to Rs.50,000/-, the Government directed that the same shall not be taken into account, whenever sale deeds are registered. The 2nd respondent did not take this G.O. into account, while passing the impugned order. The writ petition is accordingly allowed, and the impugned memo is set aside. The 3rd respondent is directed to treat Rs.50,100/- paid as stamp duty, as adequate, and process the document, according to law. There shall be no order as to costs. _______________________ L. NARASIMHA REDDY, J. Dt.30-04-2009. KO