Stamp duty on increased authorised share capital requires express statutory authority, and cannot be implied in Delhi.

Stamp duty on increase in a company's authorised share capital in Delhi could not be imposed without an express statutory entry in Article 10 of Schedule IA of the Indian Stamp (Delhi Amendment) Act, 2007. Because stamp duty is a fiscal levy, it requires clear legislative authority and cannot be inferred by implication. The absence of a specific provision therefore defeated the demand, and the existence of separate enabling provisions in other States reinforced that an express amendment was necessary for such a levy.

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Issues: Whether stamp duty can be levied in Delhi on the increase in a company's authorised share capital under Schedule IA of the Indian Stamp (Delhi Amendment) Act, 2007.

Analysis: The charging provision in Article 10 of Schedule IA did not contain an express entry authorising levy of stamp duty on increase in authorised share capital. As the levy of stamp duty is an exaction in the nature of a fiscal burden, it can be imposed only by clear authority of law. In the absence of a specific statutory provision, the demand could not be sustained. The presence of separate provisions in other States reinforced the conclusion that such a levy required an express legislative amendment.

Conclusion: Stamp duty could not be levied on the increase in authorised share capital in the absence of a specific provision, and the challenge to the demand failed.

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