State Of Maharashtra vs National Organic Chemical Industries ...

The Supreme Court upheld the Bombay High Court's decision that Form No. 5 is not an instrument as defined by Section 2 of the Bombay Stamp Act, 1958, and therefore, no additional stamp duty is payable upon the increase of share capital after the maximum duty of Rs. 25 lakhs had already been paid. The Court clarified that the amendment to Article 10 of the Stamp Act capped the stamp duty liability, and the respondent was entitled to a refund of the erroneously paid stamp duty. The appeal by the State of Maharashtra was dismissed, affirming the High Court's order for refund with interest.