Dimamond Beverages PVT LTD And Anr vs. State Of West Bengal And Ors

Facts

The petitioners, Diamond Beverages Private Limited and another, entered into a thirty-year lease agreement with Kolkata Port Trust, agreeing to pay the entire rent upfront. Upon approaching Registration Authorities for stamp duty assessment, the authorities calculated duty based on the entire thirty-year rent, not the annual rent, and included GST and Municipal taxes. The petitioners challenged this, and a coordinate bench, by order dated November 12, 2018, allowed them to pay the duty and fees but directed authorities to consider their representation on the assessment dispute. The authorities maintained their stand, except for the GST component, which they held was refundable. The petitioners argued that the GST component had not been refunded and that their appeal under Section 47B of the Indian Stamp Act against other components was being wrongly deemed not maintainable by the respondents.

Held

The Court held that the petitioners have a point in arguing that their grievance was kept open for decision by the Registration Authorities by the previous order, and thus, they likely have a right to prefer an appeal under Section 47B of the Indian Stamp Act. However, the Court deemed it premature to definitively decide on the maintainability of the appeal at this stage, as it is also a subject matter of the pending adjudication of the petitioner's appeal under Section 47B. The Court directed the respondent no.6 to refund the admitted GST component to the petitioners within four weeks. It also directed respondent no.3, the Commissioner, Presidency Division, Government of West Bengal, to dispose of the petitioners' pending appeal under Section 47B of the Indian Stamp Act expeditiously, preferably within six weeks. The Court explicitly left the question of the appeal's maintainability, along with other issues, open for decision at the final hearing of that appeal. The challenge to the CORD system and Rules was left open for a separate, properly constituted challenge.

Key Issues

1. Whether the petitioners have a right to prefer an appeal under Section 47B of the Indian Stamp Act, as amended in West Bengal, given the previous order of a coordinate bench keeping the dispute open for assessment? Petitioner's arguments: The petitioners contended that the coordinate bench's order explicitly kept the dispute regarding the assessment open for decision by the Registration Authorities. Therefore, an appeal under Section 47B of the Indian Stamp Act is maintainable. They also argued that the GST component, which was admittedly held to be refundable, had not yet been refunded. Revenue/State's arguments: The respondents, though not appearing, were taking the stand that the appeal under Section 47B was not maintainable. The judgment does not record any further arguments from the respondents.