TaxTMI 
TaxTMI 
TaxTMI 
2025 (8) TMI 1080
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....g 10% of the maximum stamp duty of Rs. 25 crores. The appellant had discharged the levy of the said additional stamp duty/cess and accordingly claimed refund of the same along with interest at the rate of 12% per month, from date of payment - that is, from 01.02.2023 - till the date of repayment. 3. The learned counsel for the appellant contended that the maximum stamp duty payable under the Karnataka Stamp Act, 1957 [Act] on the Scheme of Arrangement under Sections 230-232 of the Companies Act, 2013, is Rs. 25 crores. Therefore, the demand of additional stamp duty over and above the maximum amount, was contrary to law. The learned Single Judge had not accepted the said contention and had found that additional duties as imposed under Section 3B of the Act, are in addition to the stamp duties as specified under the schedule to the Act. Prefatory facts 4. The appellant is a Company incorporated under the Companies Act, 2013. It is inter alia engaged in the business of planning, setting-up, developing, building, owning, constructing, operating, maintaining business parks, industrial parks, software technology parks complete with all facilities. 5. The appellant Company and a compa....
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....e-stamp paper to NCLT. Thereafter, the appellant filed the aforementioned writ petition being W.P.No.5031/2023 (GM-ST/RN), impugning the order dated 03.12.2022 passed by respondent No. 3. 12. The appellant assailed the adjudication order on essentially two grounds. First that the additional stamp duty / cess imposed in terms of Section 3B of the Act was proposed on immovable property and therefore, such imposition was not applicable on the order approving the Scheme of Arrangement under Sections 230 - 232 of the Companies Act, 2013. And, second, that the maximum duty payable under Article 20(4)(i) & (ii) of the Schedule was Rs. 25 crores and therefore, no further additional cess or stamp duty could be imposed. The learned Single Judge rejected the writ petition in terms of the impugned order, which is assailed in the present appeal. Submissions 13. Learned counsel appearing for the appellant contended that Section 3 of the Act is a charging section and the stamp duty payable under the charging section is prescribed in the Schedule to the Act. He submitted that in terms of Article 20(4) of the Schedule to the Act, maximum duty payable is fixed at Rs. 25 crores and therefore, any ....
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....Section 3 read with articles of the schedule shall be chargeable with additional duty at the rate of ten per cent, on such duty chargeable on such instrument of conveyance, exchange, gift, settlement and lease in perpetuity, for the purpose of various infrastructure projects across the State, equity investment in the Bangalore Mass Rapid Transport Limited and for Mukhya Manthri Grameena Rasthe Abhivruddhi Nidhi in the proportion of 57:28:15 respectively. (2) The additional duty chargeable under sub-section (1) shall be in addition to any duty chargeable under Section 3. (3) Except as otherwise provided in sub-section (1) provisions of this Act, shall so far as may be apply in relation to the additional duty chargeable under sub-section (1) as they apply in relation to the duty chargeable under Section 3. 3-C. Limit on levy of additional stamp duty.-- Notwithstanding anything contained in any other law for the time being in force, no instrument shall be charged with any duty in the form of additional stamp duty under such other law, exceeding the maximum amount of duty with which such instrument is chargeable under this Act." 15. The stamp duty payable under Section 3 of the ....
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....angement. The appellant had also declared the value of the assets, which are the subject matter of the undertaking being demerged, as follows: Particulars Amount Movable Assets 22,60,47,237/- Immovable Assets 11,12,73,87,100/- Total 11,35,34,34,337/- 17. The stamp duty computed at 3% of the market value of the properties transferred, as stipulated under Article 20(4) of the Schedule to the Act, exceeded Rs. 25 crores, undisputedly the maximum amount of Rs. 25 crores. 18. The contention that no further amount could be imposed as stamp duty in view of the Schedule stipulating the maximum amount of Rs. 25 crores, is unmerited. The duty chargeable under Section 3 of the Act is the amount as indicated in the Schedule to the Act. However, Section 3B of the Act contemplates an additional duty over and above the duty chargeable under Section 3 of the Act. This is expressly stated in sub-section (2) of Section 3-B of the Act. Thus, the assumption that the additional duty chargeable under Section 3B(1) of the Act is subsumed within the maximum amount of Rs. 25 crores as set out in Article 20(4)of the Schedule to the Act, is unsustainable. As the opening sentence of Section 3 of the....