Bic Cello India Private Limited v. State of Gujarat
In the High Court of Gujarat
Special Civil Application 4497/2019
Before Justice Bhargav D. Karia
Decided on November 29, 2019

Relevancy of the Case: Definition of “instrument” includes electronic records

Statutes and Provisions Involved

• The Information Technology Act, 2000 (Section 2(1)(t))
• The Gujarat Stamp Act, 1958 (Section 2, 3, 33, 39, 53)
• The Transfer of Properties Act, 1882 (Section 54, 105)
• The Constitution of India, 1950 (Article 226, 227)

Relevant Facts of the Case

• Waaree Industries Private Limited purchased lands through sixteen registered deeds between 2007 to 2013. The petitioner executed sale deeds worth ₹1,15,90,93,324 in 2017 to purchase all these lands. Further, They paid stamp duty amounting to ₹5,67,95,600.
• Thereafter, the parties executed the rectification deed to correct the mistake in survey numbers in the original sale deed. The petitioner did not pay any stamp duty for this deed. However, the sub-registrar considered it a sale deed and impounded it for non-submission of stamp duty.
• The Deputy Collector issued the show-cause notice to the petitioner. Later, the Collector ordered to pay the stamp duty and the penalty as per 1982 circular amounting to ₹6,24,75,033.
• Subsequently, the petitioner has appealed against this order.

Prominent Arguments by the Advocates

• The petitioner’s counsel submitted that the order led to double-levy of the stamp duty because the rectification deed is not a sale deed.

Opinion of the Bench

• The rectification deed changed only the survey numbers. It is not an instrument within the definition of Section 2(1) of The Gujarat Stamp Act, 1958 because there is no transfer of immovable property or the rights in such property. Moreover, the definition of “instrument” includes the electronic record defined under Section 2(1)(t) of the Information Technology Act, 2000.
• The Collector has misinterpreted the circular of 1982 and wrongly considered the rectification deed as a conveyance or sale deed. Stamp duty is not payable on the rectification deed.

Final Decision

• As a result, the court quashed the Collector’s order and allowed the petition.