Supreme Court Upholds High Court Decision: No Stamp Duty on Sale Certificate Post-Auction.
19 November 2024
Property Registration >> Personal Law | Sale of Property >> Property & Real Estate
This appeal stems from a judgment by the High Court of Punjab and Haryana, which directed the respondent to hand over the original sale certificate and refund the stamp duty paid by the auction purchaser, M/s Ferrous Alloy Forging Pvt. Limited. The company had purchased assets through an auction after the winding up of M/s Punjab United Forge Limited. The key issue was whether stamp duty was mandatory on the sale certificate issued post-auction.
The High Court ruled that the sale certificate, being a mere evidence of title, did not require registration or stamp duty at the time of issuance. It further stated that while the sale certificate was not compulsory for registration, a copy had to be filed with the Sub-Registrar under Section 89(4) of the Registration Act.
The appellant, the State of Punjab, contended that stamp duty was applicable, but the Supreme Court dismissed the appeal. It reaffirmed the legal stance that sale certificates are not subject to stamp duty unless presented for registration or used for other purposes. The Court also held that the High Court’s writ jurisdiction was properly exercised, rejecting the contention of an alternate remedy.
Section 89, Registration Act - 1908