Movable windmills sold separately before land registration were excluded from stamp duty and registration valuation.

Windmills sold separately before execution and registration of the land sale deed retained their character as movable property, so their value could not be included in the land conveyance for stamp duty or registration charges. The schedule reference to the windmills was treated as descriptive of the land transfer, not as an independent conveyance of the machinery. Because the installations were fixed for their own operation and not for the permanent beneficial enjoyment of the land, the demand was unsustainable and refund of the excess duty collected was warranted.

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Issues: Whether the windmills were movable property sold separately before registration of the land sale deed, so that no stamp duty or registration charges were payable on their value and the excess amount was refundable.

Analysis: The sale documents and surrounding records showed that the windmills were sold and possession was delivered on 01.08.2008, whereas the land sale deed was executed later and registered on 19.08.2008. The reference to windmills in the schedule was held to be descriptive of the land and not an independent transfer of the windmills under the land conveyance. The windmills were installed on a platform for the purpose of running the machinery and not for the beneficial enjoyment of the land. The circular issued by the revenue authority also treated windmills as movable property. On that footing, the demand to include their value for stamp duty and registration was unsustainable, and the refusal to grant refund under Section 45 of the Indian Stamp Act was unjustified.

Conclusion: The windmills were movable property, the stamp duty and registration charges collected on their value were not payable, and the petitioners were entitled to refund.

Ratio Decidendi: Machinery or installations fixed to land for their own operation, and not for the permanent beneficial enjoyment of the land, retain the character of movable property and are not liable to stamp duty as part of the land conveyance.

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