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2000 (7) TMI 921 - SC - Companies LawWhether transfer of shares in a Co-operative Society is subject to levy of stamp duty under the Bombay Stamp Act, 1958? Whether the State Legislature has legislative competence to levy stamp duty on transfer of shares? Held that:- The question whether or not a transfer of shares in a Co-operative Society is subject to levy of stamp duty on the basis that it is a conveyance has already been answered by this Court in the case of Veena Hasmukh Jain and Another v. State of Maharashtr a and Ors.[1999 (1) TMI 521 - SUPREME COURT] whereinheld that such agreements would be covered by Article 25 of the Bombay Stamp Act, 1958. It is held that stamp duty would be leviable as if it is a conveyance. This Court has held that these are in effect agreements to sell immovable property as the possession of such property is transferred to the purchaser before or at the time of or subsequent to the execution of the agreement. It is held such an agreement to sell must be d emed to be a Conveyance. It is fairly conceded that this Judgment fully covers question (a) set out hereinabove. As seen above stamp duty is sought to be levied under Article 25, Schedule I of the Bombay Stamp Act. The stamp duty is being levied not on transfer of shares but on the basis that the agreement is a conveyance. There is no dispute that there is legislative competence in the State Government to levy stamp duty on a conveyance of property. Question No. (b) has been raised On the footing that the instrument of transfer is a form of transfer of shares. Now that it is held that such an instrument is not an instrument of transfer of shares, but it is, in fact, a conveyance question (b) no longer survives. Appeal dismissed.
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