Writ petition filed challenging levy of stamp duty on transfer of trust property. Court upheld claim that fixed duty of Rs.1000 applies under Article 52(d) instead of ad valorem.
Respondent directed to accept instrument for registration and levy fixed stamp duty of Rs.1000.
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IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 2ND DAY OF DECEMBER, 2021
BEFORE
THE HON’BLE MR. JUSTICE KRISHNA S.DIXIT
WRIT PETITION NO.8500 OF 2020 (GM-ST/RN)
BETWEEN:
…PETITIONERS
(BY SRI. UDAYA HOLLA, SENIOR COUNSEL FOR SRI. VIVEK HOLLA, ADVOCATE)
AND:
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…RESPONDENTS
(BY SRI. SRIDHAR HEGDE, HCGP)
THIS WRIT PETITION IS FILED UNDER ARTICLES 226 & 227 OF THE CONSTITUTION OF INDIA PRAYING TO DECLARE THAT STAMP DUTY PAYABLE ON A TRANSFER OF TRUST PROPERTY FROM ONE CHARITABLE TURST TO ANOTHER CHARITABLE TRUST LIKE THE PETITIONERS HEREIN IS RS.1000 AND ETC.,
THIS PETITION COMING ON FOR PRELIMINARY HEARING, THIS DAY, THE COURT MADE THE FOLLOWING:-
ORDER
The short grievance of the petitioners is to the wrong levy of Stamp Duty payable in respect of the instrument in question whereby one charitable trust transfers its property to the other. The answering respondent has refused to accept the presentation of the documents in question for registration stating that they have to be treated as the instruments of ordinary conveyance attracting levy of stamp duty ad valorem in terms of relevant article of the Schedule to the Karnataka Stamp Act, 1957.
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submission in justification of the stand taken up by the answering respondent.
RASTROTHANA TRUST vs. DISTRICT REGISTAR AND OTHERS decided on 05.01.2018 has answered the said question with the following observations:
6. At the outset, it is to be taken note that the document in question is dated 05.01.2004 and in that view, the provision providing for stamp duty as contained in the schedule prior to the subsequent amendment which was made on 01.04.2011 would have to be taken into consideration. The provision as contained in Article 52(d) of the Stamp Act would provide that in respect of a transfer, with or without consideration of any Trust property from the Trustee to another Trustee or from a Trustee to a Beneficiary, the stamp duty at Rs.200/-.
It needs to be mentioned that Article 52(d) has undergone
change vide Karnataka Act No. 16 of 2011 w.e.f from 1.4.2011 wherein wherein Rs. 200/- is substituted by Rs.1000/-.
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law relating to stamp duty is a fiscal legislation and therefore its provisions ordinarily have to be construed strictly and beneficially to the rate payers, unless there is a contra indication vide M/S NN Global MERCHANTILE vs. M/S INDO UNIQUE FLAME 2021 SCC Online SC 13 ; a citizen cannot be taxed more than what is authorized by law vide Article 265 of the Constitution of India.
In the above circumstances this Writ Petition succeeds; the answering respondent shall accept the presentation of the document in question for registration if it is otherwise admissible and levy a fixed stamp duty of Rs.1,000/- (Rupees One Thousand) only in terms of article 52(d) of the 1957 Act.
Costs made easy.
Sd/JUDGE
cbc
1 issue framed by the court
Whether stamp duty on transfer of trust property from one charitable trust to another is leviable at Rs.1000 under Article 52(d) of the Karnataka Stamp Act, 1957.
Colour shows how this judgement treated each authority
Rastrothana Trust vs. District Registrar and OthersRelied on¶27
W.P.No.29645/2010 between RASTROTHANA TRUST vs. DISTRICT REGISTAR AND OTHERS
M/S NN Global Merchantile vs. M/S Indo Unique FlameRelied on¶33
M/S NN Global MERCHANTILE vs. M/S INDO UNIQUE FLAME 2021 SCC Online SC 13 · Who else cites this
2 provisions across 2 enactments
New Horizon Educational and Cultural Trust Rep. by its Trustee Smt. Renuka Manghanani
New Horizon Educational & Research Trust Rep. by its Managing Trustee Mr. Mohan Manghanani
The Senior Sub-Registrar, Bidarahalli, Bengaluru
The District Registrar, Shivajinagar
Inspector General of Registration and Commissioner of Stamps
State of Karnataka Rep. by its Principal Secretary, Revenue Department
Krishna S.Dixit
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court