TMI Blog1999 (5) TMI 604X X X X Extracts X X X X X X X X Extracts X X X X ..... ppellants had challenged the note by which the rate was deemed to increase by 20% after one year. The appellants purchased agricultural land through registered sale deed. The sale consideration being less than the aforesaid circle rate, the appellants had to pay the additional stamp duty which they have paid. The Registering Authority after registering the same instead of returning the sale deed sent the same to Additional District Magistrate (Finance and Revenue) under Section 47-A of the Indian Stamp Act who issued show-cause notice to the appellants for the enhanced payment of stamp duty. The difference sought to be recovered was not between the value shown in the sale deed and the said circle rate but the rate which is enhanced to 20% as per the note in the said circle rate. Dispute in this case is only with respect to this enhancement of 20%. The appellants instead of replying to the said show- cause, filed a writ petition before the High Court, for quashing the said circular and the impugned notice and for returning the sale deed already registered ignoring 20% enhancement. The High Court dismissed the writ petition holding the said circular to be within the competence of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in a sale deed. The imposition of stamp duty on sale deeds are on the actual market value of such property and not the value described in the instrument. Thus, an obligation is cast on authority to properly ascertain its true value for which he is not bound by the apparent tenor of the instrument. He has to truly decide the real nature of the transaction and value of such property. For this, Act empowers an authority to charge stamp duty on the instrument presented before it for registration. The market value of a property may vary from village to village; from location to location and even may differ from the sizes of area and other relevant factors. This apart there has to be some material before such authority as to what is likely value of such property in that area. In its absence it would be very difficult for such Registering Authority to assess the valuation of such instrument. It is to give such support to the Registering Authority the Rule 340-A is introduced. Under this Collector has to satisfy himself based on various factors mentioned therein before recording the circle rate, which would at best be the prima facie rate of that area concerned. This is merely a guidelin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rument. Sub- section (2) is without prejudice to sub-section (1). Similarly, under it if the registering officer believes that the market value of the property described in an instrument has not been truly set forth, he may, after registering such instrument refer the same to the Collector for determination of true market value of such property. So, we find both under sub-sections (1) or (2) where the value described in such instrument is less than the minimum value fixed under the Rules or even otherwise if such registering officer under sub- section (2) has reasoned to believe that the market value of the property has not been truly set forth he may refer the matter to the Collector for true ascertainment of its market value. On receipt of such reference by the Collector under sub-section (3) he issues notice to the concerned party and after giving such party reasonable opportunity of being heard, may be after holding an enquiry determine the market value of such property. Reading Section 47-A with the aforesaid Rule 340-A it is clear that the circle rate fixed by the Collector is not final but is only a prima facie determination of rate of an area concern only to give guidance t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to exercise such power. As we have said, this assessment by the Collector is only prima facie and is not final and is open to both the Authorities or person seeking registration to prove to the contrary the actual market value of such property. This circle rate in no way effects any party when finally determining its value. In the present case, the vires of this Rule is not under challenge nor there is any challenge that there was no such material before the Collector to enhance for subsequent year by 20 per cent. We do not find any such ground raised nor appellants could point out any raised before the authorities concerned. On the contrary, learned counsel for the State submits that there was sufficient material before the State showing the trend of increase in land prices during the relevant years in question to sustain the fixation of 20% enhanced price for the next year in question. In State of Punjab Ors.Vs. Mohabir Singh Ors., 1996 (1) SCC 609, it was held: The guidelines provided by the State would only serve as prima facie material available before the Registering Authority to alert him regarding the value. It is common knowledge that the value of the property v ..... X X X X Extracts X X X X X X X X Extracts X X X X
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