Facts
The petitioner, a registered co-operative society, was awarded the Sahebganj–Manihari inter-state ferry-ghat transportation contract for the financial years 2022–2023 and 2023–2024.
Source reference: p.2The District Magistrate, Katihar issued Letter No. 284 dated 5 February 2024 demanding, inter alia, ₹1,36,32,000 towards registration charges and stamp duty for the two financial years, in addition to a separate default settlement amount of ₹1,26,00,000.
Source reference: p.3The petitioner challenged the demand for stamp duty and registration charges, relying on Memo No. 141 dated 4 November 1986 and Memo No. 2933 dated 4 November 2019, and on the decision in Ganga Koshi Navik Naw Yatayat Samittee in CWJC No. 2010 of 2020.
Source reference: p.4The State contended that the petitioner had participated in an open bid and, being the highest bidder, was not entitled to preferential exemption. It also relied on a Four-Member Committee report formed after the Court’s order dated 13 February 2025.
Source reference: p.4Issues
Whether a registered co-operative society is exempt from payment of stamp duty and registration charges in respect of the ferry-ghat settlement in question.
Source reference: pp. 4–5Whether the demand of ₹1,36,32,000 raised through Letter No. 284 dated 5 February 2024 towards stamp duty and registration charges was legally sustainable despite the petitioner’s participation in an open bid.
Source reference: pp. 3–5Law Applied
The Court relied on Memo No. 141 dated 4 November 1986 issued by the Joint Secretary, Revenue and Land Reforms Department, Government of Bihar, and the subsequent policy decision contained in Memo No. 2933 dated 4 November 2019, which exempt co-operative societies from payment of stamp duty and registration charges.
Source reference: p.4It also followed the co-ordinate Bench’s decision dated 3 April 2023 in CWJC No. 2010 of 2020, holding that co-operative societies are entitled to such exemption.
Source reference: p.6The Court further relied on the Division Bench decision in Patliputra Cooperative Housing Construction Society Limited v. State of Bihar & Others, reported in 1977 BBCJ 76, and the opinion of the learned Advocate General dated 28 June 2023, which affirmed that co-operative societies are exempt from stamp duty.
Source reference: p.6Reasoning
The Court treated the petitioner’s status as a registered co-operative society as determinative of its entitlement to exemption.
Source reference: p.6It held that the earlier decision in CWJC No. 2010 of 2020 had already clarified that co-operative societies were exempt from stamp duty and registration charges.
Source reference: p.6The State’s reliance on the petitioner’s participation in an open bid and its status as the highest bidder did not displace the exemption, particularly when the State’s own supplementary counter-affidavit referred to the Advocate General’s opinion affirming the exemption under Memo No. 2933 of 2019 and the Patliputra Cooperative Housing Construction Society decision.
Source reference: p.6Accordingly, the demand raised under Letter No. 284, to the extent it concerned stamp duty and registration charges, was found unsustainable.
Source reference: p.6Holding
The Court answered the issues in favour of the petitioner and held that, being a registered co-operative society, it was exempt from stamp duty and registration charges.
Letter No. 284 dated 5 February 2024 was quashed to the extent it demanded ₹1,36,32,000 towards those charges.
Source reference: p.6The Court further clarified that any proceeding initiated pursuant to that demand, insofar as it related to stamp duty and registration charges, would be futile.
Source reference: p.6The writ petition was accordingly disposed of.
Source reference: p.6Original Court PDF
Sahebganj Nav Yatayat Sahyog Samitee Ltd.vsThe State of Bihar
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