TMI Blog2012 (7) TMI 1167X X X X Extracts X X X X X X X X Extracts X X X X ..... 2393/2010. The only question that arises for consideration in this appeal is whether the learned Single Judge was right in holding that the Government of National Capital Territory of Delhi cannot collect stamp duty on the increased authorized share capital under the Indian Stamp (Delhi Amendment) Act, 2007 (hereinafter referred to as the said Act ), in view of the fact that there is no specific entry in Schedule IA enabling the Collector of Stamps to collect stamp duty on the increase in the authorized share capital of a company. 2. The facts are as set out in the impugned judgment in paragraphs 2 and 3 thereof:- 2. The Petitioner, a public limited company, was incorporated on 5th March 1992 with an authorized share capital comprising of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - to the ROC as fees. The Petitioner was directed to pay the stamp duty on increase in the authorized share capital by 15th April 2010 failing which the e-Form 5 would be treated as invalid and would not be taken on record in terms of Regulation 17 of the Companies Regulations 1956. The Petitioner then wrote to the ROC on 4th March 2010 stating that there is no provision in the Delhi Stamp Act to pay the stamp duty on increase in the authorized share capital. However, the ROC insisted by e-mail dated 15th April 2010 that the Petitioner should file Form-67 in all respects and clarified that if the stamp duty is not paid by the Petitioner, the amount of Rs. 58,25,000/- deposited with the ROC will stand forfeited. 3. During the pendency of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he latter refers to those cases where the authorized share capital of the company exceeds ` 1 lac. The stamp duty payable on the Articles of Association of a company in the first case has been shown as 0.15% of the authorized share capital with a monetary ceiling of ` 25 lacs. In the second case, that is, in other cases, the column is blank. However, it presumably applies to both the cases, that is, when the authorized share capital of the company does not exceed ` 1 lac as also in other cases. Read in that way, the said Article would be given a purposive meaning and that is how the said Article or a provision of the said statute ought to be read. Consequently, we take it to mean that whatever be the authorized share capital of the company, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he increase in the authorized share capital, it would not be possible to legally sustain the impugned demand on the increase in the authorized share capital of a company. It was also pointed out that the legislatures in Rajasthan and Madhya Pradesh and a few other States, being aware of the fact that a specific statutory provision would be necessary to impose stamp duty on the increase in the authorized share capital, have accordingly amended the said Schedule IA of the Act and have provided for levy of stamp duty on the increase in the authorized share capital. 6. In fact, when we closely examine the said Form No.5, we find that the Form itself at the end specifically mentions that the provision of Stamp Act is applicable for original shar ..... X X X X Extracts X X X X X X X X Extracts X X X X
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