Levy & collection of stamp duty.

VENKATESH HEGDE (Querist) 23 January 2012 This query is : Resolved
Dear Experts,

we are in the receipt of notice from the District Register and Deputy commissioner of stamps regarding the levy and collection of stamp duty on acknowledgment issued by the Courier companies.The Notice states that According to Art: 1(ii) of the karnataka Stamp Act all the courier Companies is liable to pay stamp duty on acknowledgment issued by the Courier companies . Accordingly they are asking the annual account statement of our Company, failing action shall be taken under section 67(b) of the karnataka Stamp Act. They are also enclosing the copy of Audit enquiry conducted by the Accountant General of India dated 16.02.2009. Under this the Amendment made by the karnataka Stamp Amendment Act 1995 (act no 8 of 1995) Art: 1 amended as Acknowledgment \of a letter article, document, parcel,package or consignment, of any nature or description whatsoever name called given by a person ,Courier Company, firm or body of persons weather incorporated or unincorporated to the sender of such letter, article document, parcel package or consignment. The proper stamp duty prescribed was one rupee for every one hundred rupees or part thereof of the amount charged therefor".
My question is : If we are paying the amount as such , we have to pay Crores of Rs for every year, It will be huge loss to the business.
From the 1995 they are not collected these amount& This year only they are starting to issue the notices to all the courier companies
How can we challenge this notice ? or this Amendment.
Can a consignment Note issued by the courier compant will be treated as an instrument? or its a receipt? Can receipt will be treats as an instruments?
Please advise.

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ajay sethi (Expert) 23 January 2012
company can afford lawyer fees .consult a local lawyer

Raj Kumar Makkad (Expert) 23 January 2012
Law has nothing to do with the loss of your business. Do you charge same amount from customers? Have you never increased charges of your service? Do you undertake not to increase your charges in future?

Consignment note itself is an instrument.

If you are aggrieved with the amendment in the Act, go to High court to challenge it otherwise follow it.