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In this case, the purchaser entered into two separate agreements with the vendor in 1983 for purchase of two property. However, the vendor failed to comply with the terms of the agreement and never executed the sale deed.

The purchaser then filed a suit for specific performance which was decreed by the trial court in 1994. The purchaser filed another execution application in 1994 and the court directed the purchaser to submit stamp papers for execution of the sale deeds.

The purchaser then submitted stamp papers based on the value as on the date of agreement for sale. The court executed the sale deeds and sent the same for registration to the Sub-Registrar of the Registration Department. However, the Sub-Registrar assessed the value of the property as on the date of execution and found that the documents were deficient in stamp duty.

The purchaser subsequently filed a writ petition challenging the order. He argued that the pendency of litigation could not prejudice him by directing him to pay stamp duty on the date of registration of sale deed. Writ petitions were allowed and the authorities were directed to pass fresh orders regarding the levy of stamp duty.

The authorities approached the Supreme Court where it was decided that the stamp duty is payable on the market value of property as on the date of execution of sale deed and not on the date of agreement for sale or on the date of filing the suit for specific performance. There is a difference between an agreement to sell and a sale.

Stamp duty on a sale is to be assessed on the market value of the property at the time of sale. Neither the date of agreement of sale nor the time of filing of the suit will matter.

It is true that as per section 3 of the Stamp Act, the instrument is to be registered on the basis of the valuation disclosed therein.

But Section 47-A contemplates in case it is found that property are undervalued then it is open for the Collector (Stamps) to assess the correct market value.

The Stamp Act is in nature a taxing statute and is not dependent on any contingency.

It is true that no one should suffer on account of the pendency of the matter but the consideration does not affect the principles of interpretation of a taxing statute.

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