TaxTMI 
TaxTMI 
2011 (2) TMI 1629
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....ction of toll tax for using Haldwani Bye-Pass Road, 14 K.M. (Kathgodam) Gaula bridge. The bid of Rs. 22 lakhs given by the Respondent was accepted by the competent authority. Thereafter, lease agreement dated 24.3.2006 was executed between the Governor of Uttaranchal (now Uttarakhand) through Commissioner, Kumaon Division and the Respondent whereby the latter was given exclusive right to collect toll from the vehicles using the road and Gaula bridge. As a condition for execution of lease, communication dated 25.2.2006 was sent by Appellant No. 2 to the Respondent requiring him to deposit stamp duty of Rs. 2,20,400/-. However, instead of depositing the stamp duty, the Respondent filed Writ Petition No. 204(M/B) of 2006 for quashing the notice issued by Appellant No. 2 and also for issue of a direction to the Appellants to charge stamp duty in accordance with the judgments in Tejveer Sing's case and Naresh Agarwal's case by asserting that the contract executed between the parties was only a security bond and stamp duty was payable as per Article 57 of Schedule I-B of Indian Stamp Act, 1899 (for short, 'the Act'), as amended by the State of U.P. and as applicable to th....
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....Agarwal's case. 7. We have considered the argument/submission of the learned Counsel. Section 2(16) (c), Articles 35(b) and 57 of Schedule I-B of the Act, which have bearing on the decision of this case read as under: 2.(16) 'Lease' means a lease of immovable property, and includes also- (a) a patta; (b) a kabuliyat or other undertaking in writing, not being a counterpart of a lease, to cultivate, occupy or pay or deliver or pay or deliver rent for immovable property; (c) any instrument by which tolls of any description are let; (d) any writing on an application for lease intended to signify that the application is granted; (e) any instrument by which mining lease is granted in respect of minor minerals as defined in Clause (e) of Section 3 of the Mines and Minerals (Regulation and Development) Act, 1957; 8. The definition of 'lease' contained in Section 2(16) consists of two parts. The first part is applicable to any lease with respect to immovable property. The second part, which is inclusive, applies to various kinds of instruments by which a title, or other rights may be conferred upon the lessee fo....
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.... lease gives the exclusive right to collect the toll from all those vehicles whether rented or on rent "which are described in Schedule and not exempted of toll but with the condition that lessor will have the right to have the control of said bridge and its existing places and to run upto the extent of any period. That if in respect of any serious situation in relation to public service or specific need arise, only such officer will be deciding authority who works on behalf of lessor because of this it was necessary for him to do that and for which the compensation amount have to be paid by Uttaranchal Govt., as by Govt. may issue order in each case for utilizing for this. Said lessee will have the said right from the midnight 12' O clock of 31.3.2006 to 31.03.2007 against consideration of Rs. 22,00,000/- [Twenty two lakhs] annual rent in monthly installments without any deduction in the office of Executive Enginner of concerned division as prescribed in clause-I of schedule enclosed with this lease.... Schedule-1 Rs. 22,00,000/- which has been reserved through this lease will be paid by lessee in twelve monthly installments on first date of each month as per the d....
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.... term. What is, therefore, to be seen is whether the document is an instrument by which tolls of any description are let. In our opinion the agreement before us comes clearly within the language quoted above. This is a document by which all lands and buildings known as "New Subzi Mandi" have been made over by the owners thereof to the applicant for a period of one year. He is entitled to realise fee from occupiers thereof at certain rates in consideration of a sum fixed by public auction. This "letting of tolls" and the document is covered by Section 2(16)(c) of the Stamp Act. It is needless to say that the word "toll" used in this Sub-section means any sum of money which is taken in respect of some benefit, the benefit being the temporary use of land, that is, fares and market tolls. It includes all payments or taxes made by persons who frequent the market for the sale of any commodity or any thing which by practice or custom is expected to be sold in the market. This document is signed both by the lessor and the lessee. Therefore, it can hardly be doubted that it is an instrument by which collection of tolls is let and is lease within the meaning of Section 2(16) of the Stamp Act....
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....t petition filed by the Respondent. Therefore, it must be held that the Division Bench of the High Court committed serious error by disposing of the writ petition of the Respondent by relying upon the judgments in Tejveer Singh's case and Naresh Agarwal's case, and that too, without even adverting to the lease agreement executed between Appellant No. 1 and the Respondent. 15. In the result, the appeal is allowed, the impugned order is set aside and the writ petition filed by the Respondent is dismissed. The Appellants shall now be free to recover stamp duty from the Respondent in terms of Notice No. 775 dated 25.2.2006. Since no one has appeared on behalf of the Respondent, the costs are made easy. ============= Document 1 Schedule I-B 35. Lease, including an under-lease or sublease and any agreement to let or sublet- (b) where the lease is granted for a fine or premium or for money advanced and where no rent is reserved.- (i) where the lease. purports to be for a term not exceeding thirty years; (ii) where the lease purports to be for a term exceeding thirty years; The same duty as a Conveyance [No. 23 ....