Chief Controlling Revenue Authority vs Costal Gujarat Power Ltd. & Ors

4. The facts of the case lie in a narrow compass.

5. The respondent is a Company named Coastal Gujarat Power Ltd and it needed financial assistance for setting up an Ultra Mega Power Project in the area of Kutch-Bhuj and for that purpose it secured assistance from few lenders. The lenders i.e. financial institutions, which were thirteen in number, formed a consortium as a trust and executed a security trustee agreement (STA) inter se appointing one banker, viz. the State Bank of India as the lead trustee, called the security trustee. The duties of the security trustee are carved out in the said agreement of security trustees.

6. The respondent executed an “Indenture of Mortgage for Delayed After Assets Deed’ with the State Bank of India, the said security trustee, mortgaging its assets as mentioned in the deed itself. The said document was presented for registration before the Sub-Registrar, Mudra, by paying stamp duty of Rs. 4,21,000/- and the deed was registered.

8. The respondent was given an opportunity of hearing and vide order dated April, 3, 2010, the Deputy Collector held that the respondent was liable to pay the deficit stamp duty with the amount of penalty of Rs.250/- .

The persons set out in Schedule II have been collectively referred to as the “Senior Lenders” which includes their successors, transferee and assigns. These senior dealers entered into an agreement with the respondent M/s. Costal Gujarat Power Limited, a company registered under the Companies Act and referred to as borrower.

20. In light of the aforesaid, it is submitted that the impugned judgment, which has rightly decided the matter in favour of the Respondent (assessee) and against the Appellant (revenue), does not suffer from any infirmity. Therefore, the present appeal ought to be dismissed by this Court. As a sequitor to the dismissal of the appeal, the appellant should also be directed to refund the excess stamp duty amount of Rs. 50,41,600/- that was deposited, under protest, by Respondent No.1.

Provided that the duty chargeable on the instrument so determined shall be the highest duty which would be chargeable in respect of any of the said instruments employed.

Section 5 - Instrument relating to several distinct matters or distinct transactions. Any instrument comprising or relating to several distinct matters shall be chargeable with the aggregate amount of the duties with which separate instrument, each comprising or relating to one of such matters or distinct transactions, would be chargeable under this Act.

34. Answering the Reference, the Constitution Bench of this Court elaborately discussed the scope and object of Sections 4,5, and 6 of the Stamp Act and finally allowed the appeal. Their Lordship held:-

37. As a result, this appeal is allowed, the impugned order is set aside. It is held that the respondent is liable to pay deficit stamp duty together with interest as directed by the revenue authorities. However, there shall be no order as to costs.

…………………………….J. (M.Y. Eqbal) …………………………….J. (Arun Mishra) New Delhi August 11, 2015 ITEM NO.1B COURT NO.10 SECTION IX (For Judgment) S U P R E M E C O U R T O F I N D I A RECORD OF PROCEEDINGS Civil Appeal No. 6054 of 2015 @ Petition(s) for Special Leave to Appeal (C) No(s). 32319/2013 CHIEF CONTROLLING REVENUE AUTHORITY Petitioner(s) VERSUS COSTAL GUJARAT POWER LTD. & ORS. Respondent(s) Date : 11/08/2015 This petition was called on for pronouncement of judgment today.

For Petitioner(s) Ms. Jesal, Adv.

For Ms. Hemantika Wahi,Adv.

For Respondent(s) Mr. Dheeraj Nair,Adv.

Mr. K. R. Sasiprabhu,Adv.

Hon'ble Mr. Justice M.Y. Eqbal pronounced the judgment of the Bench comprising His Lordship and Hon'ble Mr. Justice Arun Mishra.

Leave granted.

The appeal is allowed in terms of the signed reportable judgment.

(Signed reportable judgment is placed on the file)