Pa.Mu.745/P1/2019, Sale Certificate Revision Order
The Inspector General of Registration and Chief Controlling Revenue Authority of the Tamil Nadu Registration Department issued Proceedings No. Pa.Mu.745/P1/2019 on 20 January 2023, dismissing a revision petition concerning stamp duty and penalty on a sale certificate issued by the State Bank of India. The proceedings uphold the North Chennai District Registrar's decision that the original sale certificate presented for registration attracted stamp duty based on the property's market value.
What the proceedings decide
Proceedings No. Pa.Mu.745/P1/2019, dated 20 January 2023, concern pending document P52/2018 at the Arani Sub Registrar Office. The document was a sale certificate dated 18 June 2018, issued by the State Bank of India to Mrs T. Kalaivani for a stated value of Rs.39,00,000.
The document holder paid Rs.1,95,020 as stamp duty, treating the sale certificate as chargeable at 5 per cent. The Sub Registrar decided that this treatment was not available because the auction had not been conducted by a civil court, revenue court, Collector or revenue officer. The document was impounded and sent to the North Chennai District Registrar.
Amounts confirmed
The North Chennai District Registrar classified the sale certificate under Article 23 and determined the following:
- Deficit stamp duty of Rs.77,980.
- Penalty of Rs.1,000.
- Stamp duty based on the property's market value at 7 per cent.
While the revision petition was pending, the document holder paid the deficit stamp duty and deficit registration fee under objection. The sale certificate was then registered as document number 1917/2022 on 12 April 2022.
Arguments and findings
The petitioner argued that sale certificates issued after auctions by nationalised banks did not require stamp duty or registration fees. The petitioner also argued that a sale certificate issued by a bank officer should be treated like one issued by a civil or revenue court, and that imposing a penalty was incorrect.
The Inspector General of Registration and Chief Controlling Revenue Authority rejected those arguments. The proceedings relied on court findings stating that a bank authorised officer's sale certificate attracts stamp duty under Article 18-C read with Article 23 when the original is presented for registration.
The proceedings distinguish between two situations:
- An original sale certificate presented for registration requires stamping and registration.
- A copy forwarded for filing in Book I under section 89(4) cannot be refused merely by demanding stamp duty and registration fees.
Who may be affected
Proceedings No. Pa.Mu.745/P1/2019 are relevant to purchasers of immovable property through bank auctions who present the original sale certificate for registration. In this case, the revision petition was dismissed and the North Chennai District Registrar's assessment was upheld.
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Common questions
Does a bank auction sale certificate require stamp duty when I present the original for registration?
According to Proceedings No. Pa.Mu.745/P1/2019, the original sale certificate presented for registration requires stamp duty and registration. The proceedings treated the bank's sale certificate as chargeable under Article 18-C read with Article 23.
Is filing a copy of a bank sale certificate in Book I treated the same as registering the original?
No. The proceedings state that a copy forwarded for filing in Book I under section 89(4) cannot be refused by demanding stamp duty and registration fees, while the original presented for registration requires them.
What deficit stamp duty and penalty were confirmed in this case?
The North Chennai District Registrar fixed deficit stamp duty of Rs.77,980 and a penalty of Rs.1,000. The Inspector General of Registration and Chief Controlling Revenue Authority upheld that decision.
What happened to the sale certificate while the revision was pending?
The document holder paid the deficit stamp duty and deficit registration fee under objection. The sale certificate was registered as document number 1917/2022 on 12 April 2022.
