(1) If the Registering Officer, while registering any instrument transferring any property, has reason to believe that the value of the property or the consideration, as the case may be, has not been truly set forth in the instrument, he may, after registering such instrument, refer the same to the Collector for determination of the value or consideration, as the case may be, and the proper duty payable thereon.

(2) On respect of a reference under subsection (1), the Collector shall, after giving the parties a reasonable opportunity of being heard and after holding as enquiry in such manner as may be prescribed by rules made under this Act, by order, determine the value of the property or the consideration and the duty aforesaid; and the deficient amount of duty, if any, shall be payable by the person liable to pay the duty and, on the payment of such duty, the Collector shall endorse a certificate of such payment on the instrument under his seal and signature.

(3) The Collector may, suo motu, within 2 [two years] from the date of registration f any instrument not already referred to him under subsection (1), call for and examine the instrument for the purpose of satisfying himself as to the correctness of its value or consideration as the case may be, and the duty payable thereon, and if after such examination, he has reason to believe that the value or consideration has not been truly set forth in the instrument, he may determine the value or consideration and the duty aforesaid, in accordance with procedure provided for in subsection (2); and the deficient amount of duty, if any, shall be payable by the person liable to pay the duty and, on the payment of such duty, the Collector shall endorse a certificate of such payment on the instrument under his seal and signature.

[(3A) [***] 3

(4) Any person aggrieved by an order of the Collector under subsection (2) or subsection (3) may appeal to the District Court within whose jurisdiction the property transferred is situate.

(5) An appeal under subsection (4) shall be filed within thirty days of the date of order sought to be appeal against.

(6) The District Court shall hear and dispose of the appeal in such manner as may be prescribed by rules made under this Act.

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2. The words “two years” was submitted for the words “six months” by Act 21 of 1967 w.e.f. 1691967.

3. (3A) Inserted by Act 14 of 1988 with effect from 12-11-1990 and was deleted by Act 16 of 1991 with effect from 11-1-1991 it ran as follows:(

3A) Notwithstanding anything contained in Section 45A and the Schedule, where an instrument referred to in this section is an instrument involving transfer of land, the value or consideration thereof determined by the Collector under subsection (2) or subsection (3), as the case may be,  shall be the basis for reckoning the proper amount of duty in respect of that instrument.