‘Stamp Duty Cannot Be Levied On Contract Security’: Allahabad HC Raps State Govt For Ignoring Previous Judgments

In a recent judgement, the Allahabad High Court rapped the state authorities for overlooking a trite law that stamp duty cannot be levied on contract security.”This issue had arisen before this Court before one and a half decades but it appears that the authorities concerned have not shown that the said decision is binding on them as a similar issue came before this Court before three years and the judgment was struck down as it was beyond the jurisdiction of the authorities to demand the stamp duty beyond Article 57 (b) Schedule 1 B of the Stamp Act,” the Bench of Justice Jayendra Thaker said. The matter pertains to demand of stamp duty on a contract security to be deposited by a contractor, who was given the tender for repairing of roads in Mathura.