Case Note & Summary
The High Court heard a writ petition by Petitioner. challenging stamp duty assessment of Rs. 50,00,000 on an NCLT Mumbai order sanctioning a composite amalgamation scheme with INA Bearings India Private Limited and LuK India Private Limited -- The Respondents had assessed duty based on treating the scheme as two transactions -- The Court recalled an earlier judgment and heard the matter afresh -- It held that stamp duty under Maharashtra Stamp Act, 1958 is levied on the instrument (NCLT order) and not the underlying amalgamation transactions -- Relying on precedent, the Court set aside the impugned orders and allowed the petition -- The decision emphasizes that chargeability depends on the instrument, regardless of whether it covers one or multiple transactions
Headnote
The High Court of Judicature at Bombay allowed a writ petition challenging stamp duty assessment on an NCLT order sanctioning a composite amalgamation scheme -- The Court held that stamp duty under Maharashtra Stamp Act, 1958 is levied on the instrument (NCLT order) and not the underlying transactions -- The impugned orders assessing Rs. 50,00,000 as duty were set aside -- The Court applied the principle from Chief Controlling Revenue Authority vs Reliance Industries Limited that chargeability depends on the instrument -- It was immaterial whether the order pertained to one or different transactions -- The judgment clarified that treating separate transactions as distinct for stamp duty conflicts with Section 5 of the Stamp Act, 1958
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Issue of Consideration: The Issue of whether stamp duty under Maharashtra Stamp Act, 1958 should be assessed on the instrument (NCLT order) or the underlying transactions (amalgamation scheme) was considered
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Final Decision
The High Court allowed the writ petition, set aside the impugned orders dated 25 March, 2019 and 12 September, 2022, and held that stamp duty assessment was invalid as duty is levied on the instrument (NCLT order) and not the underlying transactions
