No Stamp Duty on Sale Certificates Issued by Banks or Revenue Authorities: Kerala High Court

The Division bench of the Kerala High Court has ruled that sale certificates issued by banks or revenue authorities to auction purchasers don’t attract stamp duty unless they qualify as a legal "instrument" under the Kerala Stamp Act, 1959.

The certificate merely records the sale and does not affect any rights or liabilities, thus excluding it from the purview of the definition of "instrument" and not triggering stamp duty, though it becomes so if used beyond its primary purpose. 

The court dismissed the government’s appeals, upholding that unless such conditions are met, no stamp duty is payable on these certificates.

[RDO and Anr. v. Thomas Daniel and Connected cases]