Urmila Devi Vs.
Commr.Varanasi & Ors.  INSC 24 (7 January 2009)
JURISDICTION CIVIL APPEAL NO.29 OF 2009 (Arising out of S.L.P. (C) No.13325 of
2007) Urmila Devi ...Appellant(s) Versus Commissioner, Varanasi & Ors.
...Respondent(s) O R D E R Leave granted.
Magistrate, Varanasi, after issuing show cause notice to the petitioner
proposing recovery of deficit stamp and levy of penalty with interest and
considering appellant's objections, passed order dated 30th December, 2004
under Section 47A of the Indian Stamp Act, whereby he directed the appellant to
pay deficit stamp fee of Rs.1,17,000/- on the basis of deemed valuation of the
land and structure at the rate of Rs.140/- per sq. ft. He also levied penalty
of Rs.1,17,000/- on the appellant apart from interest at the rate of 1.5 per
cent on the amount of deficit stamp. That order was confirmed by the Divisional
Commissioner, Varanasi who dismissed the appeal preferred by the petitioner.
Her writ petition was also dismissed by the High Court. Hence, this appeal by
We have heard learned
counsel for the parties and perused the record.
Neither from the
orders of the District Magistrate and Commissioner, Varanasi nor from the
report of the Sub Registrar which constituted foundation of the action ...2/-
-2- initiated by the District Magistrate, it is possible to discern the basis
for fixing the value of the land and structure at the rate of Rs.140 per sq.
ft. Learned counsel for the respondents could not draw our attention to any
other material from which the court can find out the criteria for fixing the
value of the property at Rs.140 per sq. ft.
Therefore, it must be
held that the order of the District Magistrate suffers from arbitrariness and
is liable to be set aside on that ground. Consequently, the orders passed in
appeal and by the High Court are also liable to be set aside.
appeal is allowed, impugned orders are set aside and the matter is remitted to
the District Magistrate with the direction to pass appropriate order after
giving opportunity to the parties to adduce evidence on the issue of valuation
of the property.