Stamp Shock: Hitech Corporation Faces ₹7.2 Cr Demand Over Gujarat Property Transfer

Hitech Corporation Ltd has received a formal order from the Collector and Superintendent of Stamps, Gandhinagar, demanding payment of ₹1.1 million in stamp duty and a ₹6.1 million fine, totaling ₹7.2 million. The order pertains to a property in Gujarat that was transferred to Hitech Corporation following its amalgamation with Clear Mipak Packaging Solutions Ltd (CMPSL), approved by the Bombay High Court in November 2015.

 

According to the company’s disclosure, the Gujarat stamp authority has raised objections over the pan-India property transfers executed under the court-sanctioned merger. Hitech had already paid the requisite stamp duty on the amalgamation order after adjudication. However, the Gujarat authority has now sought additional duty and penalties, citing jurisdictional grounds.

 

The company has clarified that it will file an appeal against the order within the prescribed timeline and believes there is no material impact on its financial or operational activities. The demand is being contested on the basis that the stamp duty was already settled and that the current levy may amount to double taxation.

 

This development adds a legal wrinkle to Hitech’s otherwise stable operations. The company, known for its rigid plastic packaging solutions, has not reported any disruption in business continuity or cash flow due to the order.

 

The outcome of the appeal could set a precedent for similar cross-state merger-related stamp duty disputes in India.

 

Sources: Value Research Online, Rediff MoneyWiz, Business Standard