Stamp (Amendment) Act (No. 50 of 1971)

Sri Lanka Consolidated Acts

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Stamp (Amendment) Act (No. 50 of 1971) - Sect 24

Section -

58A.

	(1) Any person who is aggrieved by the amount required to be paid by the notice issued under section 46 (1) (b) may, within a period of thirty days after the date of the notice, appeal to the Commissioner against such amount:

	(2) Every appeal shall be preferred by a petition in writing addressed to the Commissioner and shall set out the grounds of such appeal.

	(3) Every petition of appeal which does not conform to the provisions of sub-section (2) shall not be valid.

	(4) On receipt of a valid petition of appeal, the Commissioner may cause further inquiry to be made by an Assessor, and if in the course of such inquiry an agreement is reached as to the matter specified in the petition of appeal, the necessary adjustments of the amount shall be made.

(5) Where no agreement is reached between the appellant and the Assessor in the manner provided in sub-section (4), the Commissioner shall, by notice given in writing to the appellant, require the appellant to transmit to him within a period of thirty days after the date of such notice, a list of documents upon which, and the names and designations of persons on whose evidence, the appellant proposes to rely in support of his appeal.

	(6) The Commissioner shall, as soon as may be after the transmission to him of the list referred to in sub-section (5), give notice in writing to the appellant of his determination on the appeal.

(7) Before making his determination on any appeal, the Commissioner may, if he considers necessary to do so, by notice given in writing to the appellant-

(a) require the appellant within the period specified in the notice, to produce, or transmit, for inspection by the Commissioner any document specified in the list transmitted by him to the Commissioner;

(b) require the appellant in person or by authorized representative to be present, together with such documents and witnesses as may be specified in such notice, at such place and on such date and at such time as may be specified in the notice, to be heard on such matters relating to the appeal as may be specified in such notice; and

(c) require the appellant within the period specified in the notice to furnish the written evidence, on affidavit or in such other manner as may be specified in the notice, of any person mentioned in the list transmitted to the Commissioner by the appellant.

	(8) Where any appellant fails to comply with the requirements of any notice given under sub-section (5) or subsection (7), the Commissioner shall dismiss the appeal:

	(9) The Commissioner shall have power to summon any person whom he may consider reliable to give evidence respecting the appeal to attend before him and may examine such person on oath or otherwise. Any person so attending may be allowed by the Commissioner any reasonable expenses necessarily incurred by such person in so attending.

(10) Before making his determination on any appeal, the Commissioner may, if he considers it necessary to do so, by notice given in writing to any person require that person to produce for examination, or to transmit to the Commissioner within the period specified in such notice any such deeds, plans, instruments, books, accounts, trade lists, registers, cheques, paying-in-slips, auditors' reports or other documents in his possession as may be specified in such notice.

(11) Where the Commissioner requires the appellant or his authorized representative to be heard on any matter relating to the appeal and specified in the notice given under sub-section (5) the appellant shall not at such hearing be allowed-

(a) to produce any document which is not included in the list furnished under sub-section (5) or to record the evidence of any witness whose name does not appear in that list, or

(b) to raise any point which is not specified in the petition of appeal.

	(12) The Commissioner may in disposing of an appeal under this section confirm, reduce, increase or annul the amount against which such appeal was made.

58B. Any person aggrieved by the decision of the Commissioner upon any appeal made to him under section 58A may appeal from that decision to the Board of Review constituted under the Inland Revenue Act, No. 4 of 1963, and the provisions of that Act relating to appeals to such Board of Review shall mutatis mutandis apply to an appeal under this section.

58C.

	(1) The decision of the Board of Review shall be final:

	(2) The stated case shall set forth the facts relating to the decision of the Board of Review and the amount of the stamp duty or the penalty in dispute where such amount exceeds five thousand rupees, and the party requiring it shall transmit the case, when stated and signed, to the Supreme Court within fourteen days after receiving the same.

(3) For the purpose of the application of the provisions of this Ordinance-

(a) all proceedings before the Supreme Court on any case stated under this section or the notification of the hearing, determination and the disposal of any such case, shall be deemed to be civil proceedings before the Supreme Court of the value of five thousand rupees, or of such greater amount as may be set forth by the Board of Review under subsection (2) as the amount of the stamp duty or penalty in dispute;

(b) every such case stated shall, together with all books, documents and papers annexed thereto by the Board of Review, be deemed to be a single exhibit in civil proceedings before the Supreme Court; and

(c) the Commissioner, if he is the appellant, shall be deemed to be a Government officer suing, or if he is the respondent to the appeal, a Government officer being sued, in a suit virtute officii.

	(4) At or before the time when he transmits the stated case to the Supreme Court, the party requiring it shall send to the other party notice in writing to the effect that the case has been stated on his application and shall supply the other party with a copy of the stated case.

	(5) Any two or more Judges of the Supreme Court may cause a stated case to be sent back for amendment, and thereupon the case shall be amended accordingly.

(6) Any two or more Judges of the Supreme Court shall hear and determine any question of law relating to the stated case and may in accordance with the decision of the Court upon such question confirm, reduce, increase, or annul the amount determined by the Board of Review or may remit the case to the Board of Review with the opinion of the Court thereon. When a case is so remitted by the Court the Board of Review shall revise the amount as the opinion of the Court may require.

	(7) In any proceedings before the Supreme Court under this section, the Court may make such order in regard to costs in the Supreme Court and in regard to the sum paid under sub-section (1) as to the Court may seem fit.

58D. Where no valid appeal has been lodged within the time specified in this Ordinance against the amount required to be paid, or where agreement is reached under section 58A (4) or where such amount has been determined on appeal, the amount as required to be paid, or reduced or increased or confirmed on appeal, as the case may be, shall be final and conclusive for all purposes of this Ordinance as regards the amount to be paid:

58E.

(1) The stamp duty or penalty required to be paid by notice issued under section 46 (1) (b) shall be paid in the manner directed in the notice or in any other notice given to the person liable to pay such duty or penalty, on or before a date specified in such notice. Subject to the provisions of subsection (2), any stamp duty or penalty not so paid shall be deemed to be in default and the person by whom such duty or penalty is payable or, where any such duty or penalty is payable by more than one person or by a partnership, then each of such persons and each partner in the partnership shall be deemed to be a defaulter for the purposes of this Ordinance.

	(2) The amount of the stamp duty or the penalty shall be paid notwithstanding any appeal against the amount, unless the Commissioner orders that payment of such duty or penalty or any part thereof be held over pending the result of such appeal, and the amount of the duty or penalty or part thereof so held over shall be deemed not to be in default.

(3) Where the Commissioner is of opinion either that the stamp duty or the penalty or any part thereof held over under sub-section (2) is likely to become irrecoverable, or that the appellant is unreasonably delaying the prosecution of his appeal, he may revoke any order made under that sub-section and make such fresh order as the case may appear to him to require and the amount of any stamp duty or penalty not paid on or before such date as may be specified in the fresh order shall be deemed to be in default.

(4) Where, according to the final determination of an appeal under Chapter IVA, or upon any order made by the Commissioner, any stamp duty or penalty which has been held over under sub-section (2) becomes payable or the amount required to be paid is increased, the Commissioner shall give to the appellant a notice in writing fixing a date on or before which any amount of stamp duty or penalty or balance of stamp duty or penalty shall be paid. Any amount not so paid shall be deemed to be in default.

	(5) Where any amount of stamp duty or penalty is in default, the Commissioner may in his discretion order that a sum or sums not exceeding twenty per centum in all of the amount of stamp duty or penalty in default shall be added to such amount and recovered therewith.

	(6) Where, upon the final determination of an appeal under Chapter IVA, any amount in default to which any sum or sums under sub-section (5) has or have been added is reduced, then such sum or sums shall be calculated on the amount so reduced.

58F. Any amount in default shall be a first charge upon all the assets of the defaulter:

58G.

(1)

(a) Where any amount is in default, the Commissioner may issue a certificate to a Government Agent, Assistant Government Agent, Fiscal or Deputy Fiscal containing particulars of such amount and the name of the defaulter, and the officer to whom such certificate is issued shall be empowered and is hereby required to cause the amount to be recovered from the defaulter named in the certificate by seizure and sale of his movable property.

(b) The said seizure shall be effected in such manner as the said officer shall deem most expedient in that behalf, and any property so seized shall be kept for five days at the costs and charges of the defaulter. If the defaulter does not pay the amount in default together with the costs and charges within the said five days, the Government Agent, Assistant Government Agent, Fiscal or Deputy Fiscal shall cause the said property to be sold by public auction.

(c) The sum realized by the sale shall be applied- and any balance shall be restored to the owner of the property seized.

(2) Where any amount is in default and the Commissioner is of opinion that recovery by the means provided in sub-section (1) is impracticable or inexpedient, he may issue a certificate to a District Court having jurisdiction in any district where the defaulter resides or in which any property movable or immovable owned by the defaulter is situate, containing particulars of such amount and the name or names of the person or persons by whom the amount is payable, and the Court shall thereupon direct a writ of execution to issue to the Fiscal authorizing and requiring him to seize and sell all or any of the property movable or immovable of the defaulter, or such part thereof as he may deem necessary for recovery of the amount, and the provisions of sections 226 to 297 of the Civil Procedure Code shall, mutatis mutandis, apply to such seizure and sale.

	(3) Whenever the Commissioner issues a certificate under this section, he shall forthwith issue to the defaulter, whether resident or non-resident, a notification thereof by personal service, registered letter sent through the post, or telegraph; but the non-receipt of such notification by the defaulter shall not invalidate proceedings under this section.

58H.

(1) Where the Commissioner is of the opinion in any case that recovery of the amount in default by seizure and sale is impracticable or inexpedient, or where the full amount in default has not been recovered by seizure and sale, he may issue a certificate containing particulars of such amount and the name and last known place of business or residence of the defaulter to a Magistrate having jurisdiction in the division in which such place is situate. The Magistrate shall thereupon summon such defaulter before him to show cause why further proceedings for the recovery of the amount should not be taken against him, and in default of sufficient cause being shown, the amount in default shall be deemed to be a fine imposed by a sentence of the Magistrate on such defaulter for an offence punishable with a fine only or not punishable with imprisonment, and the provisions of sub-section (1) of section 312 (except paragraphs (a), (c) and (h) thereof) of the Criminal Procedure Code relating to default of payment of a fine imposed for such offence shall thereupon apply, and the Magistrate may make any direction which, by the provisions of that sub-section, he could have made at the time of imposing such sentence.

(2) The correctness of any statement in a certificate issued by the Commissioner for the purposes of sub-section (1) shall not be called in question or examined by the Magistrate in any proceeding under this section and accordingly nothing in that sub-section shall authorize a Magistrate to consider, or decide, the correctness of any statement in such certificate or to postpone or defer such proceeding by reason of the fact that an appeal is pending against the amount in default.

	(3) Nothing in sub-sections (2) to (5) of section 312 of the Criminal Procedure Code shall apply in any case referred to in sub-section (1) of this section.

	(4) In any case referred to in sub-section (1) in which the defaulter is sentenced to imprisonment in default of payment of the fine deemed by that subsection to have been imposed on him, the Magistrate may allow time for the payment of the amount of the said fine or direct payment of that amount to be made by instalments.

	(5) The court may require bail to be given as a condition precedent to allowing time under sub-section (1) for showing cause as therein provided or under sub-section (4) for the payment of the fine; and the provisions of Chapter XXXVI of the Criminal Procedure Code shall apply where the defaulter is so required to give bail.

	(6) Where payment in instalments is directed under sub-section (4) and default is made in the payment of any one instalment the same proceedings may be taken as if default has been made in payment of all the instalments then remaining unpaid.

	(7) In any proceedings under sub-section (1), the certificate of the Commissioner shall be sufficient evidence that the amount has been duly required to be paid and is in default, and any plea that the amount is excessive, incorrect, or under appeal shall not be entertained:

(8) The Commissioner shall, notwithstanding the provisions of section 58D, consider any objection made under subsection (7) and give his decision thereon, which shall be final, and shall be certified by him to the Magistrate, and proceedings under this section shall thereupon be resumed to enforce payment of the amount as reduced or confirmed under such decision. Where no objection has been made to the Commissioner within the period for which the matter was adjourned under that sub-section, the Commissioner shall issue a certificate to that effect and proceedings under this section shall be resumed to enforce payment of the amount.

58J.

(1) Where any amount is in default and the Commissioner is of opinion that the recovery of such amount or any part thereof by the means provided in section 58G or section 58H is impracticable or inexpedient, he may make an application by petition in writing to the District Court having jurisdiction in the district where the defaulter resides or in which any immovable property belonging to the defaulter and specified in such petition is situate for an order of that Court that such property shall vest in the Crown.

	(2) Whenever the Commissioner makes an application to a District Court under this section, he shall forthwith issue to the defaulter, whether resident or nonresident, a notification thereof by personal service, registered letter sent through the post or telegraph; but the non-receipt of any such notification by the defaulter shall not invalidate proceedings under this section.

	(3) Within ten days after the date on which an application is made to a District Court by the Commissioner under sub-section (1), the Commissioner shall cause to be published in the Gazette a notice setting out the petition made in respect of such application.

(4) No person shall, on or after the date on which a notification was issued to the defaulter under sub-section (2) of an application made by a petition in writing to a District Court for the vesting of any immovable property, alienate to any other person- and any alienation of that property or those rights to any other person shall be null and void:

(a) any property which is specified in that petition; or

(b) any rights in respect of that property,

(5) Any person who wishes to prefer a claim to any immovable property in respect of which a notice under subsection (3) has been published in the Gazette may, not later than fourteen days after the date of publication of such notice, apply by petition in writing to the District Court to which the application was made by the Commissioner under sub-section (1), to have such property declared as not liable to vesting in the Crown. Every such petition shall set out the right, title or interest of the petitioner to or in such property.

(6) The District Court to which the application was made by the Commissioner under sub-section (1) shall, after the expiry of the period of fourteen days referred to in sub-section (5), proceed in a summary manner to investigate and determine such claims as have been made in respect of the immovable property proposed to be vested in the Crown by such application. At the end of the investigation of a claim-

(a) if the District Court is satisfied that the claimant is entitled to the ownership of the immovable Property or any portion thereof, the Court shall make order accordingly, and

(b) if the Court is satisfied that the claimant has not established his claim to that property or that he has established his claim only to a portion thereof, the Court shall make order vesting in the Crown that property or that portion thereof in respect of which the claimant has not established ownership, and the Court shall make such order as to costs as the Court shall deem just.

	(7) If at the expiry of fourteen days referred to in sub-section (5), no claim has been made by any person under that sub-section, the Court shall make order that the immovable property specified in the application made by the Commissioner under sub-section (1) shall vest in the Crown.

	(8) Where any immovable property is vested in the Crown under this section by an order of the District Court, such property shall vest in the Crown subject to such encumbrances and charges as were existing on the date on which the application was made by the Commissioner.

(9) Nothing in the preceding provisions of this section shall be deemed to empower the District Court to which an application is made by the Commissioner under sub-section (1) to call in question or examine in any investigation under this section the correctness of any statement relating to particulars of the amount in default in such application or in the certificate referred to in that subsection or to postpone or defer such investigation by reason only of the fact that an appeal is pending against the amount in default.

	(10) An order under this section vesting in the Crown any immovable property of a defaulter may, upon an application made by the Commissioner, be revoked by the District Court by which such order was made.

(11) No application for the revocation of an order vesting in the Crown any immovable property of a defaulter shall be made to the District Court by the Commissioner except in any of the following cases:-

(a) Where the amount in default is annulled upon the final determination of an appeal made under Chapter IVa of this Ordinance against such amount.

(b) Where the amount which the defaulter is liable to pay after the final determination of any appeal made under Chapter IVa of this Ordinance is paid by him within forty days after such final determination or within six months after the date of the order vesting such immovable property in the Crown, whichever is the later.

(c) Where the amount in default is paid, when no appeal under Chapter IVa of this Ordinance is made by him against the amount, by the defaulter within six months after the date on which the order vesting in the Crown such immovable property was made.

(12) Where an order under this section vesting in the Crown any immovable property of any person is revoked under sub-section (10), such person shall not be entitled to claim any compensation for any loss or damage which he may have suffered as a result of, or in consequence of, the order vesting such immovable property in the Crown having been made; and no action against the Crown for compensation for any loss or damage shall be entertained by any Court.

(13) At any time after any immovable property is vested in the Crown under the provisions of this section, such time being not less than six months after the date of vesting, the Commissioner shall cause the market value of such property to be determined by the Chief Valuer of the Government or by a Valuer of the Valuation Department who is authorized in that behalf by the Chief Valuer of the Government.

(14) Where the market value of any immovable property vested in the Crown by an order of the District Court under this section is more than the amount which the defaulter has to pay, the Commissioner, in his discretion, may-

(i) with the approval of the Secretary to the Treasury, refund to the defaulter the amount by which the market value of that property exceeds the amount in default; or

(ii) cause such property to be sold.

(15) Every sale under this section of any immovable property shall be-

(a) on a date not earlier than six months after the date of the order vesting such property in the Crown;

(b) by public auction;

(c) after notice of such sale is given at least fourteen days before the date fixed for such sale by advertisement published in the Gazette and in one or more newspapers.

(16) The sum realized by the sale of any immovable property under this section shall be applied in the following order:- and any balance shall be paid to the defaulter.

(i) in satisfaction of the amount payable to any person who has a mortgage or charge on any immovable property and whose claim to such mortgage or charge has been proved to the satisfaction of the Commissioner,

(ii) in payment of the costs and charges of maintaining and selling the immovable property, and

(iii) in satisfaction of the amount in default,

(17)

(a) Where an order is made by the District Court vesting any immovable property in the Crown, the Court may in such order or in any subsequent order direct that any person authorized in that behalf by the Commissioner shall take possession of such property for and on behalf of the Crown.

(b) Where the person directed under this sub-section to take possession of any immovable property is unable or apprehends that he will be unable to take possession of that property, because of any obstruction or resistance which has been or is likely to be offered, such person shall, on his making an application in that behalf to the District Court which directed him to take possession of such property, be entitled to an order of that Court directing the Fiscal to deliver possession of the property to him for and on behalf of the Crown.

(c) Where an order made under paragraph (b) of this sub-section is issued to the Fiscal by the District Court, he shall forthwith execute that order and shall in writing report to that Court the manner in which that order was executed.

(d) For the purpose of executing an order under paragraph (b) of this subsection, the Fiscal or any person acting under his direction may use such force as may be necessary to enter the property to which that order relates and to eject any person in occupation of that property and to deliver possession of that property to the person who is authorized to take possession of that property for and on behalf of the Crown.

(18) Where an order under this section vesting in the Crown any immovable property of any person is revoked under sub-section (10), the Crown shall be liable to account to such person for the income derived from such property during the period for which such property was vested in the Crown and to pay such income to such person less the expenses incurred in maintaining such property during that period.

	(19) Where any immovable property is sold under this section, the Commissioner shall in the name and on behalf of Her Majesty be entitled to execute the instrument of transfer of such property to the purchaser.

	(20) Any person who is aggrieved by an order of the District Court under sub-section (6) may appeal therefrom to the Supreme Court, and the provisions of the Civil Procedure Code relating to appeals from the District Court to the Supreme Court shall apply in relation to such appeal.

	(21) In this section-

58K.

(1) Where the amount of stamp duty or penalty payable by any person is in default and it appears to the Commissioner to be probable that any person- the Commissioner may give to such person notice in writing (a copy of which shall be sent by post to the defaulter) requiring him to pay any such moneys not exceeding the amount in default to the officer named in such notice. The notice shall apply to all such moneys which are in his hands or due from him or about to be paid by him at the date of receipt of such notice, or come into his hands or become due from him or are about to be paid by him at any time within the period of three months after the date of such notice.

(a) owes or is about to pay money to the defaulter or his agent; or

(b) holds money for and on account of the defaulter or his agent; or

(d) has authority from some other person to pay money to the defaulter or his agent,

	(2) Any person who has made any payment in pursuance of this section shall be deemed to have acted under the authority of the person by whom the amount was payable and of all other persons concerned, and is hereby indemnified in respect of such payment against all proceedings, civil or criminal, notwithstanding the provisions of any written law, contract, or agreement.

	(3) Any person to whom a notice has been given under sub-section (1) who is unable to comply therewith owing to the fact that the moneys in question do not come into his hands or become due from him within the period referred to in sub-section (1) shall within fourteen days of the expiration thereof give notice in writing to the Commissioner acquainting him with the facts.

(4) Where any person to whom a notice has been given under sub-section (1) is unable to comply therewith and has failed to give notice to the Commissioner as provided in sub-section (3), or where such person has deducted or could have deducted the amount to which the notice relates or any part thereof and has not paid over as directed by the Commissioner such amount or part thereof within fourteen days after the expiration of the period referred to in sub-section (1), such person shall, if he is an individual be liable, or where such person is a company or a body of persons, whether corporate or unincorporate, the secretary, manager or other principal officer of such company or body shall be personally liable, for the whole of the amount which such person has been required to deduct, and such amount shall be recovered from such individual, secretary, manager or other principal officer by all means provided in this Ordinance.

(5) For the purposes of this section, the expression " defaulter " shall be deemed to include the agent of a person who is in default and the provisions of this section shall apply in any case where the amount which would have been payable by any person if he were alive is in default; and for the purposes of the application of those provisions in any such case, the expression " defaulter " in sub-section (1) means-

(a) the executor or administrator of a deceased person, or

(b) any person who takes possession of, or intermeddles with, the property of a deceased person, or

(c) any person who has applied or is entitled to apply to a District Court for the grant or resealing of probate or letters of administration in respect of the estate of a deceased person.

58L.

(1) Where the Commissioner is of opinion that any person is about to or likely to leave Ceylon without paying the amount of stamp duty or penalty required to be paid, he may issue a certificate containing particulars of such amount and the name of such person to a Magistrate, who shall, on receipt thereof, issue a direction to the Inspector-General of Police to take such measures as may be necessary to prevent such person from leaving Ceylon without paying the amount or furnishing security to the satisfaction of the Commissioner for payment thereof.

	(2) At the time of issue of his certificate to the Magistrate, the Commissioner shall issue to such person a notification thereof by personal service, registered letter sent through the post, or telegraph; but the non-receipt of any such notification by such person shall not invalidate proceedings under this section.

	(3) Production of a certificate signed by the Commissioner or an officer authorized in that behalf by such Commissioner, stating that the amount has been paid or that security has been furnished or that the amount has been paid to a police officer in charge of a police station, shall be sufficient authority for allowing such person to leave Ceylon.

58M. Where the Commissioner is of opinion that application of any of the provisions of this Chapter has failed or is likely to fail to secure the payment of the whole of any amount due under this Ordinance from any person, it shall be lawful for him to proceed to recover any sum remaining unpaid by any other means of recovery provided in this Chapter, notwithstanding that an order has been made by a Magistrate under section 58h and carried into effect.

58N. The Commissioner may, by notice given in writing to any person, require that person within the time specified in such notice to furnish any information which the Commissioner may require for the purpose of recovering any amount due from such person or some other person.

58P.

(1) Notwithstanding anything in the Companies Ordinance, where any private company is wound up and where any amount which that company is liable to pay, whether such liability arose before, or in the course of, or after, its liquidation, cannot be recovered, then, every person who was a director of the company at any time during the period in which such amount became liable to be paid shall be jointly and severally liable for the payment of such amount unless he proves that the default in payment of the amount cannot be attributed to any gross neglect, misfeasance or breach of duty on his part in relation to the affairs of the company.

	(2) In this section, the expression " private company " shall have the same meaning as in the Companies Ordinance.'.

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