TMI Blog1954 (2) TMI 8X X X X Extracts X X X X X X X X Extracts X X X X ..... d April 1,1949, various transfer deeds were sent to the company duly executed from outside the Baroda State, and inasmuch as the transferor or the transferee did not have the necessary Baroda stamps they used to send moneys to the company and the practice was that the company used to buy the requisite Baroda stamps, affix them to the transfer deeds and get them registered. It was found subsequently that two employees of the company had misappropriated these moneys and had not stamped the transfer deeds as required by law. The company coming to know of this, very honestly and properly drew the attention of the revenue authorities on May 3, 1950, to the position then obtaining and pointed out that a large number of transfer deeds had not been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inasmuch as the question of fixing the liability with regard to stamp duty arose after the merger, the company was liable to pay Indian stamp duty as well. In our opinion, however interesting the question may be, it does not strictly arise on the facts of the case and it is possible to dispose of this reference on a much narrower ground. Now, before we decide whether there is a liability to pay Indian stamp duty, we must decide whether there is any liability at all upon the company to pay any duty. For that purpose the first provision of the law to which attention might be drawn is section 34(3) of the Indian Companies Act. That sub-section provides: "It shall not be lawful for the company to register a transfer of shares in or debentur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rson liable to pay the duty to make the necessary payment. What the Collector is doing in this case is, having impounded the documents which were produced to him by the company, he is calling upon the company to pay the necessary duty. But before he can do so he must satisfy us that the company is liable under the provisions of the Stamp Act. Then we have section 48 which provides: "All duties, penalties and other sums required to be paid under this Chapter may be recovered by the Collector by distress and sale of the movable property of the person from whom the same are due, or by any other process for the time being in force for the recovery of arrears of land revenue." Therefore, it is open to the revenue authorities to proceed against ..... X X X X Extracts X X X X X X X X Extracts X X X X
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