Mumbai: The Bombay High Court has dismissed a batch of petitions challenging the State’s authority to impose stamp duty on delivery orders concerning imported goods via the sea route. A bench of Justices Gautam Patel and Kamal Khata dismissed the constitutional challenge and stated that the decision falls within the State's legislative purview to levy such a duty.
The bench also emphasised that the delivery order facilitating the release of imported goods is not part of the import process. The HC was hearing 132 petitions questioning the interpretation of specific provisions of the Maharashtra Stamp Act.
These petitions predominantly contested the imposition of stamp duty on Bills of Entry for customs clearance and subsequently challenged the duty on delivery orders.
The petitions were filed by varied entities including Jaguar Land Rovers India Ltd, Tata Motors, CEAT Ltd, UPL Ltd, Haier Appliances, Ultratech Cement Ltd, Nilkamal Ltd, Fiat India and Saurer Textile Solutions Pvt. Ltd. Counsels for the petitioners argued that import-related duties fall under Central jurisdiction.
Advocate General Birendra Saraf argued that the Constitution does not bar the State from imposing stamp duty, but only restricts the imposition of sales and purchase taxes on imports. Saraf said that the State possesses legislative competence to levy stamp duty on instruments not covered by the Indian Stamp Act.
He emphasised that the Stamp Act imposes stamp duty on a delivery order, and its relation to imported goods does not exempt it from duty. In December 2021, the HC had suspended the stamp duty on Bills of Entry in imports, citing a Gujarat High Court decision that negated such imposition.
However, on March 1, the state made a statement that it will refrain from levying the duty on Bills of Entry. Hence, the court said there was no need to continue the stay.
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