In Brief
National Organic Chemical Industries Ltd. increased its share capital multiple times and disputed whether it owed stamp duty on each increase. The company had paid Rs. 1.13 crore on its first increase (Rs. 36 to 600 crores) under the original Article 10 of the Bombay Stamp Act. When increasing again to Rs. 1,200 crores after a 1994 amendment capping stamp duty at Rs. 25 lakhs, it paid the cap amount but later sought refund, arguing the cap applied only once to its Articles of Association. The Supreme Court upheld the High Court's refund order, holding that Form No. 5 (the notice filed) is not itself a taxable instrument—only the Articles of Association are chargeable under Article 10. The Rs. 25 lakh cap applies cumulatively to all increases in the same Articles of Association, not separately per increase.
The lawyer headnote and full judgment text are available to registered users.