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1976 (3) TMI 198 - SC - VAT and Sales TaxWhether the agreements which the respondents were called upon to execute in respect of the aforesaid rights relating to forest produce were in the nature of leases or licences? Whether the respondents could be validly called upon to pay the sales tax? Held that:- Appeal dismissed. In Reference under Stamp Act, section 46(1), where a licence issued to an arrack renter expressly required as one of its conditions that the licensee should deposit a sum equal to three months' rental as a security for the due performance of the contract and the licensee executed a muchalka stating that he agreed to all the terms and conditions mentioned in the licence, it was held that neither the licence nor the muchalka taken separately or together fulfilled the conditions of a mortgage as defined in the Stamp Act, i.e., neither thereby actually created an interest in the deposit in favour of the Government. Thus no manner of doubt that the respondents could not be called upon to pay the stamp duty under article 35(c) of the Stamp Act.
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