Does the user of the land or the classification of the area determine the industrial rate under Circular No.2/2004?

The user. The circular, insofar as valuation of industrial land, specifies the user and not the classification of the area: if at the time of execution of the document the land is being put to industrial use or is situated in a RIICO Industrial Area or has been converted to industrial purpose, it shall be valued at the industrial rate. The High Court's test — that the property be situated in the industrial area and the work performed be exclusively of manufacturing — does not come out from the circular.

Rajasthan Stamp Act, 1998 — Factories Act, 1948 — Gift deed — Stamp duty — Valuation — Industrial user distinguished from commercial user — Rajasthan Stamp Act, 1998 — Valuation of land — User, not classification — Held: The user to which the land is put determines valuation; sale of the manufactured items, even retail sale, does not make the premises commercial as distinguished from industrial. (¶7, 8) Rajasthan Stamp Act, 1998 — Circular No.2/2004 — Test stipulated by the High Court — Held further: The test that the land be situated in the industrial area and the work performed be exclusively of manufacturing does not come out from the circular. Appeal allowed. (¶9, 10)

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