State of M.P. vs M/s. Satya Sai Agro Oil Pvt. Limited

S.K. Gangele, J.—This petition has been filed by the petitioner against the order dt. 20.9.2012 (Annexure P/1) passed by the Board of Revenue. By the aforesaid order, the Board of Revenue granted exemption to the respondent from payment of stamp duty. Indian Bank Mumbai Branch auctioned certain property of M/s. S.M. Dyechem Limited, a sick unit. The respondent participated in the aforesaid auction which was held under the provisions of Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (hereinafter referred to as ''SARFAESI Act''). His bid was highest, hence, it was accepted and sale certificate was issued in favour of the respondent on 31.3.2005. Collector of Stamps initiated proceeding for payment of stamp duty and thereafter he had ordered to pay the stamp duty and a penalty was also imposed against the respondent. The case of the respondent is that the respondent was exempted from payment of stamp duty in view of Industrial Promotion Policy 2004.

It is an admitted fact that the respondent purchased a sick unit in an auction held under the provisions of SARFAESI Act. The case of the respondent was referred to a High Powered Committee chaired by Chief Secretary for grant of special package under Industrial Promotion Policy 2004. The committee decided to grant exemption from payment of stamp duty to the respondent for the purpose of purchase of hypothetical unit and the land. There was also a provision in regard to the same in the Industrial Promotion Policy 2004 of the State of M.P.

In such circumstances, in my opinion, the Board of Revenue has rightly passed the order for grant of exemption. The argument advanced by the counsel for the petitioner that the respondent is liable to pay tax in accordance with the provisions prescribed under Article 22 of the Schedule I of the Indian Stamp Act 1899 could not be accepted because there was a provision for grant of exemption from payment of stamp duty under the Industrial Promotion Policy 2004 and the High Powered Committee chaired by the Chief Secretary extended the benefit of exemption from payment of stamp duty to the respondent. Consequently, I do not find any merit in this petition. It is hereby dismissed. No order as to costs.