After multiple petitions were filed in the Gujarat High Court challenging a September 7 notification of the state government by which the latter planned to do away with physical non-judicial stamp papers from October 1, the state government on Monday clarified that licensed stamp vendors holding such stamps will be allowed to sell it till December 1.
Notably, the division bench of Chief Justice Vikram Nath and Justice AJ Shastri had on Friday directed the state government to clarify its stand on the issue.
During the hearing on Monday, the division bench questioned the state government on whether the licensed stamp vendors will be allowed to exhaust the stock of non-judicial stamp papers lying with them. Counsel for the state government after taking instructions from the concerned authority informed the court that the vendors who are holding these stamps will be allowed to sell the same till December 1.
Meanwhile, after the submissions made by the government, the court has now adjourned the matter for further hearing till November 14.
Notably, the petitioners had contended that the state government amended the Gujarat Stamp Supply and Sales Rules and inserted a new rule '8A' that provides that the licensed vendors cannot sell stamps embossed or engraved on stamp paper (physical non-judicial stamp papers) to the public from October 1. They claimed that the rule was amended without amending the Gujarat Stamps Act and therefore, it is in contravention of norms.
It was argued that the non-availability of physical stamp papers and the government's insistence to adopt e-stamping will cause inconvenience to people. They argued that in the absence of internet access or a problem in connecting with the server, people would not be able to avail the facility of e-stamping or e-challan for payment of stamp duty. It was also contended that the e-stamping facility would be affected in case the government blocks internet access to curb any agitation.
They had submitted that the new rule to put an end to physical stamp papers would drastically reduce the earnings of stamp vendors. Petitioners contended that stamp vendors used to get 1 per cent commission of the value of the stamp papers sold by them. However, vendors will get only 0.14 per cent of the value of the e-stamping.
Matter Adjourned
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- Meanwhile, after the submissions made by the government, the court has now adjourned the matter for further hearing till November 14
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- During the hearing on Monday, the division bench questioned the state government on whether the licensed stamp vendors will be allowed to exhaust the stock of non-judicial stamp papers lying with them
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- They had submitted that the new rule to put an end to physical stamp papers
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