N. Paul Vasanthakumar, J.@mdashThe prayer in the Writ Petition is to quash the order dated 11.5.2012 insofar as giving direction to the Petitioner to pay 2% as interest from the date of reference i.e. from 28.11.2005 upto 31.8.2010 and at 1% from 1.9.2010 till date. The grievance of the Petitioner is that as against the order passed u/s 47A of the Indian Stamp Act, 1899 (hereinafter referred to as the Act,) an Appeal was preferred before the I.G. of Registration and again the Petitioner filed regular Appeal in C.M.A. No. 2989 of 2010 before this Court and the said C.M.A. was disposed of on 15.12.2010 by setting aside the order of I.G. of Registration and remanded back the matter to the I.G. of Registration for passing fresh orders and thereafter on 11.5.2012, the Registration passed an order directing the Petitioner to pay interest from the date of reference i.e. 28.11.2005 till 31.8.2010 at 2% p.a. and from 1.9.2010 till date at 1% p.a.
2. Learned Counsel for the Petitioner relied on a statutory provision contained in Section 47-A(4) of the Act, 1899 in support of her contention. The learned Counsel for the Petitioner further stated that the interest is payable only from the date of final order, that too at 1% p.a.
3. Learned Special Government Pleader appearing for the Respondent, in instructions, submitted that the interest payable shall be postponed till the disposal of the Appeal and shall be calculated on the amount becomes due in accordance with the final order passed and consequently the Petitioner is bound to pay 2% interest from the date of reference till final order passed by the Respondent.
4. I have considered the rival submissions.
5. Section 47-A(4) of the Act reads as follows:
47-A(4) Every person liable to pay the difference in the amount of duty under sub-section (2) of sub-section (3) shall, pay such, pay such duty within such period as may be prescribed. In default of such payment, such amount of duty outstanding on the date of default shall be a charge on the property affected in such instrument. On any amount remaining unpaid after the date specified for its payment, the person liable to pay the duty shall pay, in addition to the amount due, interest at one per cent per month on such amount for the entire period of default:
Provided that where a person has preferred an Appeal against the under sub-section (2) or sub-section (3), the interest payable under this sub-section shall be postponed till the disposal of Appeal and shall be calculated on the amount that becomes due in accordance with the final order passed in Appeal as if such amount had been determined under sub-section (2) or sub-section (3), as the case may be.
6. On a perusal of the Proviso to the said statutory provision, it is evident that if a person preferred an Appeal against the order passed u/s 47-A(2) or 47-A(3) of the Act, the interest payable under this sub-section shall be postponed till the disposal of Appeal and shall be calculated on the amount that becomes due in accordance with the final order passes in Appeal as if such had been determined under sub-section (2) or sub-section (3); as the case may be.
7. The Petitioner having filed Civil Miscellaneous Appeal challenging the order of the Respondent which was also set aside by an order dated 11.5.2012 by this Court and thereafter only final order fixing the Stamp duty payable by the Petitioner was passed, i.e., on 11.5.2012. Hence, the Respondent is entitled to claim interest only from 11.5.2012. As rightly contended by the learned Counsel for the Petitioner, the rate of interest payable was also reduced to 1% p.a. from 2010 by Amendment Act i.e. 13 of 2008 with effect from 1.9.2010. In view of the said statutory provision and the CMA being continuance of Original proceedings and ultimately CMA was allowed and remitted for consideration by the First Respondent and the First Respondent having passed order only on 11.5.2012, the Respondent is not justified in demanding interest from 2005 to 2010 that too at the rate of 2% p.a. Hence the impugned order is set aside insofar as the demand of interest for the period prior to 11.5.2012. The Respondent is entitled to claim interest at 1% p.a. from 11.5.2012 till date of payment. No costs.
