Stamp Duty Authority's Notice Quashed for Exceeding Time Limit on Merger Exempt from Duty Under Indian Stamp Act.

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....The doctrine of merger was examined concerning the jurisdiction of the respondent to adjudicate stamp duty u/ss 31 and 33 of the Indian Stamp Act, 1899. The respondent's power u/s 47A(3) to examine instruments for correctness of value or duty payable is barred by the two-year limitation period from the instrument's registration date. The petitioner filed the merger order on 07.12.2011, but the respondent issued a show-cause notice on 20.03.2014, beyond the two-year period. The Delhi Towers Ltd. case held that court orders are subject to stamp duty, and the definition of 'conveyance' u/s 2(10) is inclusive. However, as the petitioner and ACIPL were wholly-owned subsidiaries of a common parent company, the merger order was exempt from stamp duty under Notification no. 13 dated 25.12.1937. The show-cause notice and impugned order were quashed, and the petition was allowed.....