IN THE SUPREME COURT OF INDIA

CIVIL APPELLATE JURISDICTION

CIVIL APPEAL NO.29 OF 2009 (Arising out of S.L.P. (C) No.13325 of 2007)

Urmila Devi        ...Appellant(s)

Versus

Commissioner, Varanasi & Ors.       ...Respondent(s)

O  R  D  E  R

Leave granted.

The District Magistrate, Varanasi, after issuing show cause notice to the

petitioner proposing recovery of deficit stamp and levy of penalty with interest and

considering  appellant’s  objections,  passed  order  dated  30th December,  2004  under

Section 47A of the Indian Stamp Act, whereby he directed the appellant to pay deficit

stamp fee of Rs.1,17,000/- on the basis of deemed valuation of the land and structure

at  the  rate  of  Rs.140/-  per  sq.  ft.   He  also  levied  penalty  of  Rs.1,17,000/-  on  the

appellant  apart  from interest  at  the rate of  1.5 per cent  on the amount of  deficit

stamp.  That order was confirmed by the Divisional Commissioner, Varanasi  who

dismissed the appeal preferred by the petitioner.  Her writ petition was also dismissed

by the High Court.  Hence, this appeal by special leave.

We have heard learned counsel  for the parties and perused the record.

Neither from the orders of the District Magistrate and Commissioner, Varanasi nor

from the report of the Sub Registrar which  constituted foundation of the action

...2/-

- 2 -  

initiated by the District Magistrate, it is possible to discern the basis for fixing the

value of the land and structure at the rate of Rs.140 per sq. ft.  Learned counsel for

the respondents could not draw our attention to any other material from which the

court can find out the criteria for fixing the value of the property at Rs.140 per sq. ft.

Therefore,  it  must  be  held  that  the  order  of  the  District  Magistrate  suffers  from

arbitrariness and is liable to be set aside on that ground.  Consequently, the orders

passed in appeal and by the High Court are also liable to be set aside.   

Accordingly, the appeal is allowed, impugned orders are set aside and the

matter is remitted to the District Magistrate with the direction to pass appropriate

order  after  giving  opportunity  to  the  parties  to  adduce  evidence  on  the  issue  of

valuation of the property.  

......................J.       [B.N. AGRAWAL]

......................J.       [G.S. SINGHVI]

New Delhi, January 07, 2009.