“Supreme Court Clarifies State’s Power to Levy Stamp Duty on Insurance Policies” Stamp Act, 1899 – Rajasthan Stamp Law (Adaptation) Act, 1952 – Power to levy and collect stamp duty – The primary issues are the legislative competence of the State to levy stamp duty on insurance policies and the applicability of the Rajasthan Stamp Law (Adaptation) Act, 1952 or the 1998 Act – LIC contends that the state lacks legislative competence to impose stamp duty on insurance policies and challenges the demand for stamp duty payment for policies issued using stamps purchased from Maharashtra – The State of Rajasthan argues that it has the power to collect stamp duty on insurance policies under Entry 44 of List III, as per the rate prescribed by the Parliament under Entry 91 of List I – The Supreme Court dismissed the appeals, upheld the High Court’s judgment, and affirmed the state’s power to levy stamp duty. However, it directed that the state shall not demand and collect the stamp duty as per the orders dated between 1993-94 and 2001-02 – The Court reasoned that the state has the legislative competence to impose and collect stamp duty on insurance policies, and the 1952 Act applies to the case – The Court analyzed the constitutional provisions and previous judgments to conclude that the state can impose stamp duty using rates prescribed by the Parliament – The Supreme Court concluded that while the state’s power to levy stamp duty is upheld, the specific demands for stamp duty payment in this case were set aside due to the circumstances presented.


May 5, 2024

This content is restricted to site members. If you are an existing user, please log in. New users may register below.

Existing Users Log In

By sclaw

You missed

Andhra Pradesh Electricity Regulatory Commission (Distribution Licence) Regulations, 2013 – Special Economic Zones Act, 2005 – Sections 3 and 4 – Electricity Act – Section 14(b) – Whether a Special Economic Zone (SEZ) developer, deemed to be a distribution licensee under the Electricity Act, is required to make an application for a distribution license and comply with the conditions set out in the Electricity Rules and Regulations. – The appeal challenges the Appellate Tribunal for Electricity’s decision to require an appellant to infuse additional capital as a condition for being identified as a deemed distribution licensee – The court questioned whether a SEZ developer is ipso facto a deemed distribution licensee, obviating the need for an application under section 14 of the Electricity Act – The appellant argued that they are automatically a deemed distribution licensee by virtue of the 2010 Notification and that the conditions imposed by TSERC were in excess of jurisdiction – The respondents argued that the appellant must comply with the 2005 and 2013 Regulations and that TSERC is empowered to impose conditions to assess credit-worthiness – The Supreme Court partially allowed the appeal, setting aside the condition of additional capital infusion imposed by TSERC – The court reasoned that the appellant must apply to be recognized as a deemed licensee but is not subject to the additional capital requirements of regulation 12 and rule 3(2) – The court concluded that the appellant is required to make an application as per the 2013 Regulations, and the condition to infuse additional capital is not justified.