Supreme Court rules industrial land valuation based on use, not master plan classification

The core issue is whether the valuation should be based on the actual use of the land or its classification in the master plan.

Who it concerns: Appellant: Harinder Singh Sodhi; Respondents: State of Rajasthan and Ors.; Bench: Justices J. B. Pardiwala and K. Vinod Chandran.

What the court decided

• The Court held that the user of the land determines its valuation for stamp duty, not its classification in the Master Plan.
• The Court reversed the High Court's order and upheld the findings of the statutory authorities (Collector and Rajasthan Tax Board) that the property was industrial.
• The appeal was allowed.
• The Court clarified that no refund of the excess stamp duty paid (based on residential valuation) is available, as the valuation was voluntarily carried out by the executant.

Also in the document

• The Court noted that the property was registered as a factory under the Factories Act, 1948, and as an industry under the District Industries Centre, Jaipur.
• The Court stated that retail sale of manufactured goods does not convert industrial use into commercial use for valuation purposes.
• The decision relies on Circular No.2/2004 issued by the Government of Rajasthan, which specifies that industrial valuation applies if the land is put to industrial use, regardless of area classification.