The Gujarat High Court has been moved in a challenge filed against the Gujarat government’s move to prohibit the sale of physical stamp paper..Last month, the state government had issued a circular notifying the introduction of Rule 8A under the Gujarat Stamps Supply and Sales Rules, 1987, which was meant to halt the sale of physical stamp paper from October 1 onwards. The new rule states:.“…notwithstanding anything contained intros rules, the licensed vendor shall not sell Stamps embossed or engraved on stamp paper (Physical Non-Judicial Stamp Papers) to the public with effect on and from the 1st of October 2019.”.When the matter came up before the Bench of Chief Justice Vikram Nath and Justice AJ Shastri on Monday, the Court was informed by Government Pleader Manisha Lavkumar Shah that the effect of the circular has been pushed to December 1, 2019 instead of October 1, as far as the sale of existing stocks of physical stamp paper is concerned..The Bench, therefore, recorded the submission of the Government Pleader that licensed vendors would be permitted to sell their stocks of stamp paper until then. However, the Court was also informed that no new stamp papers would be issued to the stamp vendors from October 1 onwards..The Gujarat High Court is dealing with five petitions challenging the constitutionality of the newly introduced Rule 8A. The petitioners contend that the same is ultra vires the the Gujarat Stamp Act, 1958, the Indian Stamp Act, and is violative of the Constitution. Among the petitioners are the Consumer Protection and Analytic Committee and various licensed stamp paper vendors. .The petitioners have contended that the new rule would cause great difficulty and inconvenience to the general public, more so in remote areas and villages..Whereas the challenged rule was introduced citing the alternative of using of e-stamp paper, the petitioners have submitted that internet facilities are not readily available to allow the use of e-stamp papers by all. Moreover, it is noted, that it would be difficult to avail e-stamping facilities if the”internet is blocked by State under Criminal Procedure Code to curb any agitation or because of technology failure.”.E-stamping facilities are available through Authorized Collection Centers (ACC). However, the petitioners contend that there are not enough of such E-stamping centres in Gujarat to cater to everyone’s needs, particularly in the Taluka and village levels..An additional issue raised is the cut in profits that would follow under the new rules issued in 2014 with respect to the e-stamping facilities. Therefore, it is noted that the stamp vendors may not be able to enroll themselves as ACC on account of the fact that the commission being awarded to the ACC is negligible..Adding to the issue, it is pointed out that the setting up of an ACC would involve more costs than the sale of physical stamp paper. Their petitioner states,.“… in case of the physical stamp, the stamp vendor can move the stamp papers along with him, whereas, in case of e-stamping, the stamp vendor will have to be stationed at one place with necessary infrastructures namely the computer, franking machines and the facility of internet and power supply. Considering the meager discount being offered under the new rules, the 80% of the stamp vendors would be out of the business. .More and above, this facilities are being provided as suggested notary, chartered accountant and others, it may not be possible to enter into an agreement by those persons and institutions since, the discount offered is not remunerative for holding the infrastructures therefore, in the name of providing facility to the public at large, in fact, by introductions of the rule 8A of the Sales Rules, the more troubles are being created for the public at large.“.Their plea goes on to argue that it is illogical to state that the prohibition on the sale of physical stamp paper to give way to the sale of e-stamp paper would be for the benefit of the public. It is pointed out that the abrupt prohibition on the sale of stamp paper would entail a “criminal waste” of Rs 3,000 crore worth of stamp papers..“The stamp papers are printed in the security press. The destroying of these valuable stamp papers would be nothing but criminal waste of the public money and therefore, also the claim made by the respondent State Government is not in furtherance of providing facilities to the public at large but it is criminal waste of the public money.“.Moreover, objection has also been registered to the introduction of Rule 8A by way of an office circular, which the petitioners contend was issued without any application of mind and is ex facie arbitrary..Objection has also been registered to the purported objective behind prohibiting the sale of physical stamp paper, i.e. to prevent the manipulation of stamp paper supply by stamp vendors and to facilitate the availability of stamp papers..“It is submitted that the object stated in the press report itself looks very evasive. It is submitted that if this is the concern of the state government, it could have been also achieved by providing more venues for e-stamping.“.On these grounds, the petitioners have prayed that the prohibition on sale of physical stamp paper brought about by Rule 8A be declared ultra vires its parent Act and unconstitutional. As stated in the petition filed by the Consumer Protection and Analytic Committee,.“It is not in fitness of things to completely prohibit selling Non-judicial Physical Stamp Papers. Under guide of regulation, complete prohibition is not permissible in the realm of law.”.The petitioners have also called on the Gujarat High Court to issue a direction to the Gujarat government to permit the selling of physical Non-Judicial Stamp Paper through licensed vendors in Gujarat..The matter has been posted to be taken up next on November 14..Advocates Vishwas Shah and Bhavna Shah appeared in the PIL filed by Consumer Protection and Analytic Committee. Advocates Babubhai Magukia, Dhaval Vyas and Arpit Kapadia appeared in individual writ petitions.[Read the Gujarat High Court order].[Read the Government Notification].[Read the Petitions].Image take from here.
The Gujarat High Court has been moved in a challenge filed against the Gujarat government’s move to prohibit the sale of physical stamp paper..Last month, the state government had issued a circular notifying the introduction of Rule 8A under the Gujarat Stamps Supply and Sales Rules, 1987, which was meant to halt the sale of physical stamp paper from October 1 onwards. The new rule states:.“…notwithstanding anything contained intros rules, the licensed vendor shall not sell Stamps embossed or engraved on stamp paper (Physical Non-Judicial Stamp Papers) to the public with effect on and from the 1st of October 2019.”.When the matter came up before the Bench of Chief Justice Vikram Nath and Justice AJ Shastri on Monday, the Court was informed by Government Pleader Manisha Lavkumar Shah that the effect of the circular has been pushed to December 1, 2019 instead of October 1, as far as the sale of existing stocks of physical stamp paper is concerned..The Bench, therefore, recorded the submission of the Government Pleader that licensed vendors would be permitted to sell their stocks of stamp paper until then. However, the Court was also informed that no new stamp papers would be issued to the stamp vendors from October 1 onwards..The Gujarat High Court is dealing with five petitions challenging the constitutionality of the newly introduced Rule 8A. The petitioners contend that the same is ultra vires the the Gujarat Stamp Act, 1958, the Indian Stamp Act, and is violative of the Constitution. Among the petitioners are the Consumer Protection and Analytic Committee and various licensed stamp paper vendors. .The petitioners have contended that the new rule would cause great difficulty and inconvenience to the general public, more so in remote areas and villages..Whereas the challenged rule was introduced citing the alternative of using of e-stamp paper, the petitioners have submitted that internet facilities are not readily available to allow the use of e-stamp papers by all. Moreover, it is noted, that it would be difficult to avail e-stamping facilities if the”internet is blocked by State under Criminal Procedure Code to curb any agitation or because of technology failure.”.E-stamping facilities are available through Authorized Collection Centers (ACC). However, the petitioners contend that there are not enough of such E-stamping centres in Gujarat to cater to everyone’s needs, particularly in the Taluka and village levels..An additional issue raised is the cut in profits that would follow under the new rules issued in 2014 with respect to the e-stamping facilities. Therefore, it is noted that the stamp vendors may not be able to enroll themselves as ACC on account of the fact that the commission being awarded to the ACC is negligible..Adding to the issue, it is pointed out that the setting up of an ACC would involve more costs than the sale of physical stamp paper. Their petitioner states,.“… in case of the physical stamp, the stamp vendor can move the stamp papers along with him, whereas, in case of e-stamping, the stamp vendor will have to be stationed at one place with necessary infrastructures namely the computer, franking machines and the facility of internet and power supply. Considering the meager discount being offered under the new rules, the 80% of the stamp vendors would be out of the business. .More and above, this facilities are being provided as suggested notary, chartered accountant and others, it may not be possible to enter into an agreement by those persons and institutions since, the discount offered is not remunerative for holding the infrastructures therefore, in the name of providing facility to the public at large, in fact, by introductions of the rule 8A of the Sales Rules, the more troubles are being created for the public at large.“.Their plea goes on to argue that it is illogical to state that the prohibition on the sale of physical stamp paper to give way to the sale of e-stamp paper would be for the benefit of the public. It is pointed out that the abrupt prohibition on the sale of stamp paper would entail a “criminal waste” of Rs 3,000 crore worth of stamp papers..“The stamp papers are printed in the security press. The destroying of these valuable stamp papers would be nothing but criminal waste of the public money and therefore, also the claim made by the respondent State Government is not in furtherance of providing facilities to the public at large but it is criminal waste of the public money.“.Moreover, objection has also been registered to the introduction of Rule 8A by way of an office circular, which the petitioners contend was issued without any application of mind and is ex facie arbitrary..Objection has also been registered to the purported objective behind prohibiting the sale of physical stamp paper, i.e. to prevent the manipulation of stamp paper supply by stamp vendors and to facilitate the availability of stamp papers..“It is submitted that the object stated in the press report itself looks very evasive. It is submitted that if this is the concern of the state government, it could have been also achieved by providing more venues for e-stamping.“.On these grounds, the petitioners have prayed that the prohibition on sale of physical stamp paper brought about by Rule 8A be declared ultra vires its parent Act and unconstitutional. As stated in the petition filed by the Consumer Protection and Analytic Committee,.“It is not in fitness of things to completely prohibit selling Non-judicial Physical Stamp Papers. Under guide of regulation, complete prohibition is not permissible in the realm of law.”.The petitioners have also called on the Gujarat High Court to issue a direction to the Gujarat government to permit the selling of physical Non-Judicial Stamp Paper through licensed vendors in Gujarat..The matter has been posted to be taken up next on November 14..Advocates Vishwas Shah and Bhavna Shah appeared in the PIL filed by Consumer Protection and Analytic Committee. Advocates Babubhai Magukia, Dhaval Vyas and Arpit Kapadia appeared in individual writ petitions.[Read the Gujarat High Court order].[Read the Government Notification].[Read the Petitions].Image take from here.
